What is the npv of this investment

Assignment Help Finance Basics
Reference no: EM131317419

Net present value: Kingston, Inc. management is considering purchasing a new machine at a cost of $6,137,270. They expect this equipment to produce cash flows of $814,322, $663,275, $637,250, $1,817,112, $1,292,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment.

Reference no: EM131317419

Questions Cloud

Describe your final three to five observations about success : Describe your final three to five observations about the success of the agency, highlighting the value of the agency to U.S. citizens, its success at meeting its goals, and areas where it can improve.
Focusing on current ratio-quick ratio and cash ratio : Given the following comparative financial data, conduct a trend analysis focusing on current ratio, quick ratio and cash ratio.
Measure the number of iterations of the outer loop : Let i measure the number of iterations of the inner loop of B3 and B4 (which count of iterations we cannot know), and let j measure the number of iterations of the outer loop (which we also cannot know). What is gj ?
Design a training workshop to teach upper management : The Human Resources department has been tasked by the CEO to develop a training workshop on collective bargaining for upper management. Your department must analyze the obligations arising out of collective bargaining.Design a training workshop to..
What is the npv of this investment : They expect this equipment to produce cash flows of $814,322, $663,275, $637,250, $1,817,112, $1,292,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment.
What are the pros and cons of paying out cash dividends : What if investors faced the same 15 percent tax on income and capital gains?- What are the pros and cons of paying out cash dividends?
Machine is the best investment : A company is considering buying either Machine A or Machine B. Machine Both machines cost $42,392, but Machine A is expected to last 4 years and generate cash flows of $16,367 each year, while Machine B is only expected to last 2 years, but genera..
An analysis of the changes in recorded crime : This is to be based on a single variate analysis of the data provided, and its focus is on the interpretation of the output of the various charts/tables/statistical tests you choose to utilise. Clearly you must provide a rationale for such an analysi..
What dividend per share will they declare for fiscal year : If Delta's managers want to follow a constant nominal dividend policy, what dividend per share will they declare for fiscal year 2009?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the yield to maturity for these bonds

Rogue Racing Inc. has $1,000 par value bonds with a coupon rate of 8% per year making semiannual coupon payments. If there are twelve years remaining prior to maturity and these bonds are selling for $876.40, what is the yield to maturity for thes..

  Grand adventure properties offers a 8 percent coupon bond

grand adventure properties offers a 8 percent coupon bond with annual payments. the yield to maturity is 6.85 percent

  Determine the pretax required return

The Gecko Corporation and the Gordon Corporation are two firms whose business risk is the same but they have different dividend policies. Gecko pays no dividends and Gordon has an expected dividend yield of 6%.

  Consequences to business behavior that ignores ethical

Businesses often encounter ethical dilemmas. Depending on the industry, there may be consequences to business behavior that ignores ethical standards.

  What is the depreciation tax shield for project in year 5

The machine falls into the MACRS 5-year class life category. Assume a tax rate of 30% and a discount rate of 13%. What is the depreciation tax shield for this project in year 5?

  What is the primary role of the bolts in a bolted joint

You have roughed out the design of a joint and believe that four, 5/8-12 = 3 SAE J429 Grade 5 bolts will provide sufficient clamping force if tightened to 50% of yield. How much preload will this create?

  Mary has been working for a university for almost 25 years

report based on the following problemmary has been working for a university for almost 25 years and is now approaching

  Discuss the stages in the product life cycle

Discuss the stages in the product life cycle for one of the following product categories:

  1 identify and explain the weakness in lehmans governance

1. identify and explain the weakness in lehmans governance practices.a. what was the quality of the reporting to the

  A treasurer of a corporation

Discuss the advantages and disadvantages of each and why

  What is the firm flotation-adjusted cash flow

If your firm follows the practice of incorporating flotation costs into the project's initial investment, what is the firm's flotation-adjusted cash flow in year 0?

  Propone que diversifique abriendo dos tiendas en perú

Un productor de camisas norteamericano quiere vender su mercadería en el mercado latinoamericano. Para ello dispone de un capital de US$ 1 millón. El inversionista sabe que siempre que abre una tienda tiene una rentabilidad de 500% en un año si las c..

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