User Account

All Pages

What is the npv of this project

Assignment Help Accounting Basics
Reference no: EM133179744

Question - You are evaluating purchasing the rights to a project that will generate after tax expected operating cash flows of $85k at the end of each of the next five years, plus an additional $1,000k non-operating cash flow at the end of the fifth year. You can purchase this project for $524k. If your firm's cost of capital (aka required rate of return) is 12.6%, what is the NPV of this project? Provide your answer in units of $1000, thus, $15000 = 15k and thus you should enter 15 for your answer.

Reference no: EM133179744

Questions Cloud

Difficulty in transporting raw materials : Question 1: What factors might contribute to the difficulty in transporting raw materials?
Evaluate the three projects : The cash flows for project 3 in the next three years are £95,000, £115,000 and £180,000 respectively. Evaluate the three projects
Gain a competitive advantage in the marketplace : Consider a modern business that you believe successfully uses evidence-based management (EBM) to gain a competitive advantage in the marketplace?
Evaluate what contributes to understanding of the topic : Summarize, discuss, then evaluate what contributes to understanding of the topic below Weimin W case. Explain the outcomes and suggest the important to look at
What is the npv of this project : You can purchase this project for $524k. If your firm's cost of capital (aka required rate of return) is 12.6%, what is the NPV of this project
Assess the value of a wellness program : What types of company data would you use to determine the components needed to assess the value of a Wellness program?
Make the appropriate adjusting entries : Make the appropriate adjusting entries in the situations below - The company has a machine with a cost of $60,000 which it bought in prior years
Strengths and weaknesses of external promotions : What are some strengths and weaknesses of external promotions and internal transfers or hiring from external sources?
Determining the shortlisting grid : You have just joined this organization as one of the new Recruitment and Selection Advisors. Your manager has just asked you to complete the process to hire a

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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