What is the npv of the project

Assignment Help Accounting Basics
Reference no: EM133160266

Question - You have a project with an initial investment of $130 that pays $65 in one year and $75 in five years. The project is very safe with no default risk. The zero-coupon 1-year T-bill has a yield to maturity of 1%. The zero-coupon 5-year T-note has a yield to maturity of 2.5%. What is the NPV of the project? What is the IRR of the project? Should you accept it?

Reference no: EM133160266

Questions Cloud

Journalize the redemption of the bonds : A $1,750,000 bond issue on which there is an unamortized premium of $74,200 is redeemed for $1,804,100. Journalize the redemption of the bonds
Explain the functions of management : List and explain the FOUR (4) steps that take place in an external audit.
Improve current business and professional practice : Describe, in detail, how organizational culture can shape, inform, and improve current business and professional practice related to this topic.
Present value in accounting measurement : what is the objective of using present value in accounting measurement?
What is the npv of the project : The zero-coupon 1-year T-bill has a yield to maturity of 1%. The zero-coupon 5-year T-note has a yield to maturity of 2.5%. What is the NPV of the project
Improve current business and professional practice : Describe, in detail, how organizational culture can shape, inform, and improve current business and professional practice related to this topic.
Failure of organizational interventions : What contributes to the success or failure of organizational interventions? What elements should OD practitioners consider when selecting an intervention?
Compute the annual cash inflow over the project life : The plant and equipment are expected to have a salvage value of P2,000,000. Compute the annual cash inflow over the project life
How should hytec reward its employees based on performance : Briefly, How should Hytec reward its employees based on performance?

Reviews

Write a Review

Accounting Basics Questions & Answers

  Ench 687 - petroleum process economics assignment

ENCH 687 - Petroleum Process Economics Assignment help and solutions:-"university of calgary"Calculate the after tax cash flow

  Prepare journal entries to record the dividend transactions

The dividend requires shareholders' approval at the next AGM. Required: Prepare the journal entries to record the dividend transactions

  Create a schedule showing depreciation for the year

For each asset classification, create a schedule showing depreciation for the year ended December 31, 2016

  What is the required return on the company stock

Glenhill Co. is expected to maintain a constant 6.2% growth rate in its dividends indefinitely. What is the required return on the company stock

  What benefits organizations reap from csr

We looked at ethical dilemmas faced by organizations along with organizations' corporate social responsibility (CSR) to the community. Describe why organization

  How much will you need to have saved by time

How much will you need to have saved by time 31 if the expected interest rate from time 31 to 56 is 14 percent per year

  Calculate the composite depreciation rate and composite life

Calculate the composite depreciation rate and composite life of the assets. Record the journal entry for depreciation on December 31, 2019

  Discuss uncontrolled risks associated with payroll system

The accounting clerk receives the payroll register, reviews it for accuracy, Discuss the uncontrolled risks associated with the company's payroll system

  What is the labor rate variance

The job was completed in 510 hours and the average actual labor rate was $18.30 per hour. What is the labor rate variance

  Assume that the conditions are met for the transfer of

beyonceacute corporation factors 175000 of accounts receivable with kathleen battle financing inc. on a with recourse

  How does financing affect profit margins

How might differences across countries in the extent to which debt versus equity is the major source of financing affect profit margins, debt-to-equity ratios?

  Prepare journal entries to record the amortization expense

Patents ($87,700 cost less $8,770 amortization) $78,930. Prepare journal entries to record the 2018 amortization expense for intangible assets

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