User Account

All Pages

What is the npv of the project

Assignment Help Finance Basics
Reference no: EM132535158

Paul Restaurant is considering the purchase of a $10,300 soufflé maker. The soufflé maker has an economic life of 7 years and will be fully depreciated by the straight-line method. The machine will produce 1,300 soufflés per year, with each costing $2.50 to make and priced at $4.90. The discount rate is 9 percent and the tax rate is 22 percent.

What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Should the company make the purchase?

Reference no: EM132535158

Questions Cloud

Determine the corporate-level strategy : Determine the corporate-level strategy you think is most important to the long-term success of the firm and whether or not you judge this to be a good choice
Discuss and develop a marketing plan : Expand research skills to create and develop a marketing plan. The plan can be a new product for an existing company or a new product for a new company.
Find what some of social influences on consumer behavior : Find What are some of the social influences on consumer behavior? What are some of the behavioral influences on organizational buying?
Describe a time when received a direct marketing message : Describe a time when you received a direct marketing message where you felt it was an invasion of privacy because the company knew so much about you.
What is the npv of the project : What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Summarize company supplier responsibility information : Examine the manner in which your company's Supplier Code of Conduct helps the organization operate as a socially responsible organization.
Annuity interest rate and compounding schedule : Given the same annuity interest rate and compounding schedule, how much should Max have saved every month to have accumulated $300,000?
What is the future value in max annuity : To save for retirement, Max invests $150 every month in an ordinary annuity with a 3.3% interest rate compounded monthly.
Explain why are targeting the segments : Explain why you are targeting these segments and three possible channels you would use to place your product for distribution to this target market.

Reviews

Write a Review

Finance Basics Questions & Answers

  What was the amount of the costs incurred by the firm

The tax rate was 40 percent. What was the amount of the costs incurred by the firm?

  Nominal required return on risk-free government securities

a. What is the UK's inflation rate if the equilibrium relationships hold? b. What is the UK's nominal required return on risk-free government securities?

  What is the npv and is this a good project

You are considering undertaking a project where a $12 million investment would generate after- tax cash flows of $3 million per year for 5 years.

  Find the historical population figures

Find the historical population figures for your community for the 20th century. Create a chart by ten-year intervals. Determine the most rapid periods of growth, and try to discover what caused them.

  Selection of expected return by rational investor

Investment A has an expected return of 15 percent per year, while investment B has an expected return of 12 percent per year.

  Determine profit or loss from transactions

Determine your profit or loss from these transactions. Your profit? (or loss) from these transactions is ?$___. ?(Round to the nearest? dollar.)

  Develop succession plans

This assignment will help you understand how organizations HRIS to develop succession plans and the importance of the employee.

  You estimate that you will need 20000 for the trip how

in five years your oldest child will be in 8th grade at which point you and your family plan to vacation in the

  Green desires to form a new company to manufacture lawn

1. green desires to form a new company to manufacture lawn mowers. green is concerned about having his personal assets

  What is the return on investment for a firm

What is the return on investment for a firm that has a debt ratio of 0.65, a net profit margin of 6.5%, sales of $740,000, and a total asset turnover of 4?

  Interest based bargaining

Discuss how interest based bargaining is different from other techniques.

  What does the net profit margin ratio

What does the NET PROFIT MARGIN RATIO tell about this company? Are the trends getting better or worse? Why or why not? Would you recommend purchase

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