User Account

All Pages

What is the npv of the project

Assignment Help Finance Basics
Reference no: EM131114105

St. Johns River Shipyards's welding machine is 15 years old, fully depreciated, obsolete, and has no salvage value. However, even though it is obsolete, it is perfectly functional as originally designed and can be used for quite a while longer. The new welder will cost $84,500, and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $28,000 to $56,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the firm's WACC is 14%.

What is the NPV of the project? Round your answer to the nearest cent.

What is the NPV of the project? Round your answer to the nearest cent.

Reference no: EM131114105

Questions Cloud

Create program perform error-checking on the initial values : Create a program called Date.java to perform error-checking on the initial values, for instance: fields month, day, and year. Also, provide a method nextDay() to increment the day by one.
Explain advantages of promoting social tolerance : Using a child development theory of your choice, explain the advantages and disadvantages of promoting social tolerance among children under the age of 10.
Determining the company stock today : Schiiller Corp will pay a $2.94 per share dividend next year, The company pledges to increase its dividend by 4.5 percent per year, indefinitely, If you require a return of 12 percent on your investment, how much will you pay for the company's sto..
Question regarding the value of the bond today : Two years ago, you bought a fifteen year bond at its face value of $1,000. The coupon rate on this bond is 9%, payable annually. Today (just after receiving the second annual coupon payment), the current yield on the bond is 7.5%. What is the valu..
What is the npv of the project : What is the NPV of the project? Round your answer to the nearest cent. What is the NPV of the project? Round your answer to the nearest cent.
What are the security issues that should be addressed : What are the security or control issues that should be addressed as part of the technology selection process for Kirby's business? Propose how you would address ethics or information security issues as part of the technology selection process..
Propose an alternate way of doing research : Can you propose an alternate way of doing research on willing human subjects which would protect the dignity of the individually and at the same time yield the necessary information we need to advance medical science?
Component cost of debt : The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year.  Assume the firm has sufficient retained earnings to fund the equity portion o..
Determination of the appropriate crime prevention strategy : A determination of the appropriate crime prevention strategy for the jurisdiction based on this analysis. A review of academic literature and studies on the various crime prevention programs to address the needs of the community

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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