User Account

All Pages

What is the npv of the purchase of the company

Assignment Help Basic Computer Science
Reference no: EM132187689

You are considering buying a company for $150 million. The purchase has an NPV of $30 million using a cost of capital of 10%. Furthermore, you think you could invest in a project after you buy it that cost an additional $20 million and further improve its operations by $4 million per year (after tax). Assume the $20 million project has a 10 year life.

(A) What is the IRR of the $20 million project?

(B) What is the NPV of the purchase of the company when you include the consideration of the $20 million project?

Reference no: EM132187689

Questions Cloud

Why is collaboration so important in technical communication : Why is collaboration so important in technical communication? What are some of the things you need to know about your intended audience?
Evaluate the impact on each of given technologies : Your final evaluation of cryptography will be to determine the difference between AES and 3DES. Evaluate the impact on each of these technologies.
Member of your management team reports : A member of your management team reports to you that she is working to get your customers to pay on shorter terms
Describe the scope of the project and control measures : You are now in the final stage of the project plan development. All previous documentation should be combined into one document that will serve as the statement
What is the npv of the purchase of the company : What is the NPV of the purchase of the company when you include the consideration of the $20 million project?
What will the earnings per share : Assume that Firm A acquires Firm B via an exchange of stock at a price of $47 for each share of B's stock. What will the earnings per share
Identify and expound on one fruit you exhibit : Identify and expound on one fruit you exhibit most consistently and 1 fruit that you exhibit least consistently when teaching others
If unemployment increase what happens to gdp growth : Question: If unemployment increase what happens to GDP Growth?
Increase in the growth rate of the money supply : Compared with a closed economy, an increase in the growth rate of the money supply in an open economy increases aggregate demand by a:

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Provide injective function from to and explain why injective

Provide an injective function from ? to ? and explain why it's injective

  Company ability to foster collaboration

1. Discuss how a company's ability to foster collaboration among its employees could help it to successfully take a planned emergence approach to strategic decision making.

  Repeat the test with the modified program

Repeat the test with the modified program and explain the difference.

  Write a simple version of the chattr(1) command

Write a simple version of the chattr(1) command

  Write program named program

?Write program named program52.py that uses main and a void function named randnums that takes no arguments and does not return anything.

  Limited number of tickets for the hoops

A limited number of tickets for the Hoops championship basketball game go on sale tomorrow, and ticket orders are to be filled in the order

  Calculate the relative error

Calculate the relative error, if any, in your answer to the previous question

  How does one of these forces impact the healthcare industry

This is a discussion question. Michael Porter is known for communicating Five Forces that impact industry competition.

  Briefly describe the activities that need to occur

Briefly describe the activities that need to occur to set up the emergency operation center for your company, and where your company should locate the center.

  Operates at practical? capacity

?(a) What will the? plant's profit per week be if it operates at practical? capacity?

  Create a table resourcetypes

Create a table "ResourceTypes" with the following fields (as always: keep the field names exactly as specified below and the data types

  How does this affect the output market

How does this affect the output market? Explain your answer through the sequence of change(s) on any variable(s) involved.

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