User Account

All Pages

What is the npv of the investment opportunity

Assignment Help Financial Accounting
Reference no: EM132522752

You have been offered a unique investment opportunity. If you invest $15,000 ?today, you will receive $750 one year from? now, $2,250 two years from? now, and $15,000 ten years from now.

Question a. What is the NPV of the investment opportunity if the interest rate is 6% per? year? Should you take the? opportunity?

Question b. What is the NPV of the investment opportunity if the interest rate is 2% per? year? Should you take the? opportunity?

Reference no: EM132522752

Questions Cloud

Perform a hypothesis on the slope for the packaging display : If you were using the backward stepwise regression with an alpha to leave of 0.1, would you eliminate a variable? If so, which one?
Corporate valuation model and the dividend discount modela : Benjamin Graham, the father of value investing, once said, "In the short run, the market is a voting machine, but in the long run
Explicit strategies for technology development : Do you feel that countries and companies need explicit strategies for technology development,
What is a criminal state of mind : What is a criminal act? What is a criminal state of mind? When are individuals liable for their actions? Discuss the various kinds of crime classifications.
What is the npv of the investment opportunity : What is the NPV of the investment opportunity if the interest rate is 2% per? year? Should you take the? opportunity?$15,000 ten years from now
Computerized operating systems : Computerized Operating Systems (OS) are almost everywhere. We encounter them when we use out laptop or desktop computer.
What is ranking if interest rate only two percent per? year : Rank the alternatives from most valuable to least valuable if the interest rate is 8% per year. What is your ranking if the interest rate is only 2% per? year
How much should the town charge : 1,025 tons of refuse a month, and wants to charge a tipping fee per ton that is sufficient to break even. How much should the town charge?
How many different passwords can you get based on rules : A password contains 3 characters. First two are English letters and last one is digit number. How many different passwords can you get based on these rules?

Reviews

Write a Review

Financial Accounting Questions & Answers

  Which is one effect on the day the stock split occurs

Joe Carry-out Coffee began the year with $89,000 in retained earnings, and 61,000 shares of $0.50 par value common stock originally issued at $10 per share. The board of directors declared $24,000 of cash dividends on June 30. On July 1, Joe Carry-ou..

  Evaluate the acquisition cost of each intangible asset

Reporting and Computing the Acquisition and Amortization of three Different Intangible Assets - Evaluate the acquisition cost of each intangible asset

  Maybe your credit was bad or you had no previous credit

You just bought a new Jeep Wrangler and secured dealer financing for $26,500 over 60 months at an interest rate of 1.0% per month (which is extremely high, but maybe your credit was bad, or you had no previous credit). How much are your monthly car p..

  Evaluated and rewarded on the basis of budgetary performance

Linda Ellis, division manager, is evaluated and rewarded on the basis of budgetary performance. Linda, her assistants, and the plant managers are all eligible to receive a bonus if actual divisional profits are between budgeted profits and 120 percen..

  Calculate the allowable depreciation for year two

Phil owns a ranch business and uses four-wheelers to do much of his work. Occasionally, though, he and his boys will go for a ride together as a family activity. During year 1, Phil put 1,097 miles on the four-wheeler that he bought on January 15 for..

  Properly classified between current and long-term

At the financial statement date of December 31, 2017, the liabilities outstanding of ABC Corporation included the following: Cash dividends on common stock, $50,000, payable on January 15, 2018. Note payable to XYZ State Bank, $470,000, due January 2..

  Determine the unit of productionnbsp from the given

determine the unit of productionnbsp from the given data.javadi company makes a composting bin that is subject to wide

  What is the environment

Build a decision framework - What is going to be the basis for my decision?

  Prepare entry phoenix makes to record the acquisition

Prepare the entry Phoenix makes to record the acquisition of Spark and prepare a working paper to consolidate the balance sheets of Phoenix and Spark at January 31, 2014.

  Green mountain partners

Greg, Alex, and Tom formed a general partnership in 2000 which they call Green Mountain Partners. Green Mountain Partners presently owns a bed and breakfast inn located in Quechee, Vermont. If Greg sold the land to the partnership, Green Mountain Par..

  Hst wont be called a transaction

Journalize the following transactions. Provide explanations. HST wont be called a transaction

  Contribution margin ratio and break-even point in dollars

The Shields Company produces a product that sells for $7. Variable costs are $2.10 per unit, while fixed costs per period are $28,000. The contribution margin ratio and break-even point in dollars, respectively, are. The Billings Corporation produces..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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