What is the npv of the investment

Assignment Help Business Management
Reference no: EM132343722

Dickinson Brothers, Inc., is considering investing in a machine to produce computer keyboards. The price of the machine will be $2,100,000, and its economic life is five years. The machine will be fully depreciated by the straight-line method. The machine will produce 29,000 keyboards each year. The price of each keyboard will be $74 in the first year and will increase by 4 percent per year. The production cost per keyboard will be $37 in the first year and will increase by 6 percent per year. The project will have an annual fixed cost of $325,000 and require an immediate investment of $290,000 in net working capital. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 9 percent.

What is the NPV of the investment?

Reference no: EM132343722

Questions Cloud

Why is understanding the time value of money : Why is understanding the time value of money is crucial for evaluating a company's future projects? Assume you are the CFO of company
Discuss saint leo core value of respect and cshse standard : this paper must address and discuss the Saint Leo Core Value of Respect and the CSHSE standard (s) that best informs an understanding of the analysis.
Calculate the eac for both conveyor belt systems : Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced.
Review a transcription services contract : Review a Transcription Services contract and evaluate if it meets the basic elements of a contracts and includes all terms that would be needed in contracting
What is the npv of the investment : The corporate tax rate for the company is 23 percent. The appropriate discount rate is 9 percent. What is the NPV of the investment?
Price a package of two exotic options : Dan is trying to use Monte Carlo simulations with 6,000 trials to price a package of two exotic options.
Explain the use of planning tools used in management account : ICON COLLEGE OF TECHNOLOGY AND MANAGEMENT-Pearson BTEC HND in Business-Management Accounting TNA67-Demonstrate an understanding of management accounting systems
What is the firm market value : What is the firm's market value? Show your answer to the nearest $1. Do not use commas or the $ sign in your answer.
Use of leverage in the capital structure : A firm has the following book-value balance sheet; Debt =$ 20 ,000, Common Stock ($1 par)= 18 and Retained Earnings = $ 35 ,000. The book value of assets

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd