What is the npv of this project

Assignment Help Finance Basics

Reference no: EM13266310

Kolby's Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $107,000. The sausage system will save the firm $195,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $53,000.

Required:

If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project?

Reference no: EM13266310

Questions Cloud

What is your total return for last year : You bought a share of 7.00 percent preferred stock for $99.68 last year. The market price for your stock is now $105.42.

Describe the characteristics of the series rc filter circuit : Describe the characteristics of the series RC filter circuit with the output across the capacitor component. Distinguish the pass and stop bands with reference to the cutoff frequency. Also, state what happens to the circuit complex impedance at t..

Explain what is hte mass in mgs of solute : what is hte mass in mgs of solute in 737 mL of a solution that contains 6.38 ppm of Pb(NO3)2 and please explain work

Find the charge on the capacitor as a function of time : Use electric circuit analysis techniques and Laplace methods to find the charge, q(t), on the capacitor as a function of time. The switch is closed at t=0 and the initial voltage V0 on the capacitor is 8 Volts.

What is the npv of this project : If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project?

Find the energy absorbed by the element at time t : The voltage across an element is v(t) = 5e-7t V. The current entering the positive terminal of the element is i(t) = 1e-6t A. Find the energy absorbed by the element in 0.038 s starting from t = 0.

Compute the temperature of the molecules : Consider a balloon being filled up with oxygen. You have approximately 30 moles of oxygen gas in this balloon with volume 1.3 m^3. compute the temperature of the molecules

Compute the molar mass of a gas from knowledge : Starting from the ideal gas equation, show how you can calculate the molar mass of a gas from knowledge of its density.

Draw logic circuit for the function f using and and or gates : Assume dual rail logic. Dual rail logic means that both a variable and its complement are available as inputs to the logic block, such that an inverter is not needed to generate B' from B.

User Account

All Pages