What is the npv of this project

Assignment Help Financial Management

Reference no: EM131235606

Assume you have both taxes and inflation. You are in the 20% tax bracket, and the inflation rate is 5% per year.

A 1-year project offers you $3,000 return for a $20,000 investment. Taxable bonds offer a rate of return of 10% per year. What is the NPV of this project?

Reference no: EM131235606

Questions Cloud

Contrast the consumer buying decision process : Contrast the consumer buying decision process with the organizational buying process. Why is it difficult to generalize the process of business buying behavior? Relate the buying process model to organizational and individual needs. How do they chang..

What is the periodic current yield of the bond : You have the following bond: Par value = 10,000, Coupon is 12%, semi-annually compounded, 20 year maturity, Nominal Market rate of interest is 11.25%. What is the periodic current yield of the bond in Period 20 (20 periods to maturity)

Reach objectives they have deemed important : Leaders inspire and encourage their followers to reach objectives they have deemed important. The ability to empower others to reach these objectives is a key skill of a leader. Using the overview of transformational and transactional leadership prov..

What was the job completion rate of the system : A distributed system has a print server with a printing speed of 60 pages per minute. The server was observed to print 500 pages over a 10-minute observation period. If each job prints five pages on the average, what was the job completion rate of..

What is the npv of this project : Assume you have both taxes and inflation. You are in the 20% tax bracket, and the inflation rate is 5% per year. - What is the NPV of this project?

Evaluate projects with the same level of risk : Calculate the discount rate the firm should use to evaluate projects with the same level of risk as the firm

Every rule of law is composed : Every rule of law is composed of ___________.

How many firms will be operating in the long-run equilibrium : With the current demand function, what will be the long-run total quantity produced in the market? How many firms will be operating in the long-run equilibrium? What are firms' accounting profits in the long run?

What is the maximum possible throughput of this system : What changes in CPU speed would you recommend to achieve a response time of 10 seconds with 25 users? Would you also need a faster disk A or disk B?

User Account

All Pages