What is the npv of the project

Assignment Help Finance Basics
Reference no: EM133113849

You have the chance to participate in a project that produces the following cash flows:

Cash Flows ($)

C0

C1

C2

-3,300

5,700

-10,500

a. The internal rate of return is 11.82%. If the opportunity cost of capital is 10%, what is the NPV of the project? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV:__________________

b. Would you accept the offer?

0 Yes

0 NO

Reference no: EM133113849

Questions Cloud

Calculate net working capital and the cash inflows : The following table tracks the main components of working capital over the life of a four-year project.
Stages of the criminal process : List the stages of the criminal process from the pre-trial stage through the end of the trial and what occurs at each stage.
How many pounds of direct material did Happy Inc use : Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. How many pounds of direct material did Happy Inc use
Data collection system : Develop a persuasive argument focusing on which data collection system you feel is the most efficient in today's society.
What is the npv of the project : You have the chance to participate in a project that produces the following cash flows:
What would be the effective annual percentage cost : The company purchases supplies on terms of 1/10, net 20, and it currently takes the discount. What would be the effective annual percentage cost
International funds national tax : Which of the following is a type of hybrid fund Sector funds Balanced funds International funds National tax exempt bonds
How many pounds of direct material did Happy Inc : Happy, Inc. produces a product requiring 8 pounds of material at P1.50 per pound. How many pounds of direct material did Happy Inc
Case - Debt Versus Equity : Case - Debt Versus Equity - Discuss the entity theory rationale for making no distinction between debt and equity

Reviews

Write a Review

Finance Basics Questions & Answers

  Working in the financial service industry

Working in the financial service industry, what are your Referral marketing plan. Consider your target clients, expectation of the plan and how it would work?

  Bank one and bank enn interest rates-arbitrage opportunity

What arbitrage opportuity is available? Which bank would experience a surge in demand for loan? Which bank would receive surge in deposit. What would you expect to take place to interest rate the two banks are offering?

  Calculate eac for both the models

You are starting a family pizza parlor and need to buy a motorcycle for delivery orders. You have two models in mind. Model A costs $9,200 and is expected.

  What rate of return will dr. stein need to achieve this goal

He calculates that he will need $80,000 for his son's education by the time the boy goes to school. What rate of return will Dr. Stein need to achieve this goal?

  Proportion of servers and proportion of cashiers

A random sample of cashiers and servers in a large city indicate that 124 of 150 cashiers and 200 of 250 servers are women. Is there a significant difference in the proportion of servers and proportion of cashiers who are women at 0.05 level of si..

  Trace a recursive method

A method can be directly or indirectly recursive and we will explore the differences.  Please respond to all of the following prompts:1• Discuss how any why would you trace a recursive method?2• What are recursive definitions?

  Values and goals of education programs

Differences between the values and goals of education programs and those of the families and cultures within our classrooms can vary greatly.

  Would your answer change if the inability

Would your answer change if the inability to meet private sector customer demand reduces sales of 50,000 during this (ignore any effects beyond this period)?

  Does this data present strong evidence that the proportion

in a random sample of 85 automobile engine crankshaft bearings 10 have a surface finish roughness that exceeds the

  Calculate the pw value for interest rates in the given range

Find all rates that are real numbers between _25% and _50%, and calculate the PW value for interest rates in this range. Indicate which is the best and correct i * value to use in a PW analysis.

  Find the net advantage to leasing for the lessee

The before-tax interest rate is 15%. Mead's tax rate is 40%. Find the net advantage to leasing for the lessee (WSU)?

  How much is a share of cliff corp stock worth today

Cliff Corp. currently pays no dividends, but plans to begin paying a constant dividend of $3.00 per share in five years. If the appropriate discount rate.

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