Solution-What is the npv of the project

What is the npv of the project

Reference no: EM133068563

DFG invests in a project that costs $6,872 and will generate EBIT of $1,282 each year for 12 years. The ratio of debt to equity is 0.7. The cost of equity is 13.7%, the cost of debt is 7.2%, and the tax rate is 30%. What is the NPV of the project?

Reference no: EM133068563

Questions Cloud

Explain why the weighted mean is a better choice : A commercial real estate company in Oceanside leases five buildings to local businesses. The lease price per square foot differs by building due to location and

What does she illustrate about the power science : What does she illustrate about the power science has to blur the line between life and death? What is a current news item that is similar to this issue

What is bbc weighted average cost of capital : The risk-free rate is 2.4%, the expected market return is 12.7% and the company's tax rate is 31%. What is BBC's weighted average cost of capital?

What is the direct materials quantity variance : All of the material that was purchased was used to produce 3,900 units. What is the direct materials quantity variance

What is the npv of the project : The ratio of debt to equity is 0.7. The cost of equity is 13.7%, the cost of debt is 7.2%, and the tax rate is 30%. What is the NPV of the project?

Find the value of a 2-year zero coupon bond : Find the value of a 2-year zero coupon bond. Assume a face value of $1000. Assume current one year rates are 5.8%, and that in one year rates will be either 6.8

Draw project xena life cycle : (1) Given the nature of Ria's Project, draw Project Xena's Life Cycle.

What was the total interest paid during the period : Christine received a loan of $9,500 at 4.52% compounded semi-annually from a credit union. What was the total interest paid during the period

What are the stock earnings per share : Select a publicly traded company that interests you. Tell us why the company captures your attention and interest.

User Account

All Pages

What is the npv of the project

Reference no: EM133068563

Reference no: EM133068563

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

What is your total nominal return on this investment

What is the maximum price you are willing to pay

What is portfolio return

Create unique hypothetical weighted average cost of capital

What will be the value offered per share for ernie bank

What required reserve ratio is implied

Xyz company is currently operating at full capacity has

Market hypothesis apply to all financial markets

What is the required return for galveston stock

How exposure to the market premium can predict

What is her profit for this short transaction

What is the anticipated return on this loan

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT