What is the npv of the investment

Assignment Help Accounting Basics
Reference no: EM133179813

Question - Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, and would yield yearly cash flows of $200,000 for 9 years. The company uses a discount rate of 9%. What is the NPV of the investment?

Reference no: EM133179813

Questions Cloud

Create a classified balance sheet for rhaggisi go-karts : Use the following information to create a classified balance sheet for Rhaggisi Go-Karts on December 31, 20-. Create a classified balance sheet for Rhaggisi
Formulate a compensation and promotion plan : You have to design and formulate a compensation and promotion plan, that will promote corporate goals in organizations.
Supply chain management for health care organizations : Analyze best practice in supply chain management for health care organizations.
What is the payback period : Paramount Company is considering purchasing new equipment costing $800,000. Residual value is zero. What is the payback period
What is the npv of the investment : Gamma Company is considering an investment proposal that would require an initial outlay of $800,000, What is the NPV of the investment
How was conflict addressed on the team : How were the team members determined for the team? Did it take longer to complete tasks with this team or was it quicker?
What is the present value : What is the present value of $12,000 paid each year for 7 years with the first payment coming at the end of year 5, discounting at 8%
Shopkeeper privilege to business : Discuss the importance and requirements of the "shopkeeper's privilege" to a business.
What amount of sales is needed to break even : Assume the company's fixed costs increase by $141,000. What amount of sales (in dollars) is needed to break even

Reviews

Write a Review

Accounting Basics Questions & Answers

  Prepare an income statement for year ended december

Prepare an income statement for year ended December, Milan Company had the following activity for the year ended December

  Calculate amount of medical expenses that will be included

Calculate the amount of medical expenses that will be included with Simpson's itemized deductions after any applicable limitations.

  What will a share of stock sell for today

Bluenotes Inc. just paid a dividend of $2.00 per share. If the required return on Holyrood stock is 17 percent, what will a share of stock sell for today

  What amount related to insurance should be reported

In Buttfuski's December 31, 2014 balance sheet, what amount related to insurance should be reported as a deferred income tax liability

  Provide an example of how these two assumptions

Which are described in your readings for this week. Select two of these assumptions and explain their criticality. Provide an example of how these two assumptions are fulfilled in disaster operations.

  How much must be spent per employee on an hourly basis

How much must be spent per employee on an hourly basis to maintain the current training commitment?

  Sample budget for a charter school

Apply your knowledge of variable costing and review a sample budget for a charter school (attached). This budget is prepared assuming three levels of student enrollment (66, 100 and 120). Revenue and expenses projections are shown in the budget.

  What is the amount of cash that should be reported on june

Update the cash receipts and cash payments journals by adding the necessary adjustments and calculate the total cash receipts.

  Costs of operating the helpline

Mire Corporation staffs a helpline to answer questions for customers. The costs of operating the helpline are variable with respect to the number of calls in a month.

  Why would a business eventually want to be listed on stock

Also, what form of business organization can be listed on the stock exchange? Why would a business eventually want to be listed on the stock exchange?

  Explore the FASB Codification sections

Explore the FASB Codification sections regarding stockholders' equity. Identify one question that has arisen as you have explored equity in the codification

  Calculate the taxable profit and accounting profit

Amount provided in 2019 for employees' long-service leave entitlements 5000. Calculate the taxable profit and accounting profit for the year ending 30 June 2019

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