What is the npv of this investment project

Assignment Help Financial Management

Reference no: EM131980955

You are considering an investment project with a cost of $10,000 that promises the cash flows of $2000 at the end of year 1, $2500 at the end of year 2, $3000 at the end of year 3, $3500 at the end of year 4, and $4000 at the end of year 5. If the required rate of return is 12%, what is the NPV of this investment project? Should you accept the project?

Reference no: EM131980955

Questions Cloud

Transactions for profit organization versus not-profit one : What are the major differences in recording transactions for a for-profit organization versus a not-for-profit one, or are there any?

What were flotation costs as fraction of funds raised : The firm incurred $300,000 in legal, administrative, and other costs. What were flotation costs as a fraction of funds raised?

The allowance for uncollectible property taxes : All outstanding property taxes would be collected, so there was no need for the allowance for uncollectible property taxes.

What amount must you invest in account today : What amount must you invest in this account today to fund this annuity for 30 years (the 30th payment will zero out the account)?

What is the npv of this investment project : If the required rate of return is 12%, what is the NPV of this investment project? Should you accept the project?

What is the net present value of the project : If the cost to invest in this project is $8,200, what is the Net Present Value of the project? Should you accept the project?

What is the standard deviation of the? portfolio : Consider the data provided in the table below for a portfolio of assets A and B. What is the standard deviation of the? portfolio?

Company need to issue in order to be left with net proceeds : If the underwriting spread is 5%, how many shares will the company need to issue in order to be left with net proceeds of $4 million?

What is their average inventory turnover : A company uses 12,000 units per year, orders in quantities of 1,000 units and keeps a 200 units safety stock. What is their average inventory turnover?

User Account

All Pages