What is the npv of this project if discount rate is infinite

Assignment Help Financial Management
Reference no: EM131615942

An investment project has an installed cost of $518,297. The cash flows over the four-year life of the investment are projected to be $287,636, $203,496, $103,802, and $92,556, respectively. What is the NPV of this project if the discount rate is infinite?

Reference no: EM131615942

Questions Cloud

Return on investment vs total asset turnover : What does it mean if they're better at Return on investment vs Total asset turnover?
Gordon growth model of stock valuation : Please use the following information and the Gordon Growth Model of stock valuation to calculate the current market price of a share of Triple M Corporation:
Value of conducting indepth marketing research study : Your firm is considering whether value of conducting indepth marketing research study in order to better assess the attractiveness of introducing a new product.
Interest generating fixed-income investment assets : Corporate Bonds represent an attractive asset class to fixed-income investor. Discuss your experiences with interest generating fixed-income investment assets.
What is the npv of this project if discount rate is infinite : What is the NPV of this project if the discount rate is infinite?
Find the levered beta : The risk-free rate is 6%, as is the market risk premium and tax =40%. find the levered beta.
Exercise machine slimbody and related accessories : You are the CFO of SlimBody, Inc., retailer of exercise machine Slimbody and related accessories. What are the incremental free cash flows from this project.
Equivalent annual cost of machine : You are trying to choose between purchasing one of two machines for a factory.
How much are you willing to pay for one share of lbm stock : How much are you willing to pay for one share of LBM stock if the company just paid a $1.23 annual dividend,

Reviews

Write a Review

Financial Management Questions & Answers

  Global sales are generally dollar denominated

Apple, whose global sales are generally dollar denominated, finds it has excess cash of $175,000,000,000, which it can invest for up to three years. Assume that the annual interest amount is reinvested, i.e. compounds, at the same annual interest rat..

  What discount rate will this project break even

When will the initial cash outflow be recovered? At what discount rate will this project break even?

  What is the incremental savings of buying the valves

Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; What is the incremental savings of buying the valves?

  What net benefit will the firm receive

What net benefit (or cost) will the firm receive if it adopts the lockbox system? Should it adopt the proposed lockbox system?

  Compute the ratio of m1 to gdp and the ratio of m2 to gdp

Using the data on the text Web site, compute the ratio of M1 to GDP and the ratio of M2 to GDP. - Plot these ratios over the last 40 years.

  Tasked with evaluating two independent projects

You have been tasked with evaluating two independent projects: a three-year lathe for the shop and a six-year machine press. Are the two estimates equally reliable? Why or why not?

  Share your investment policy statement

Working with a group of people, create an investment policy statement for a real or fictitious organization. Share your Investment Policy Statement (IPS)

  Compute the internal rate of return for both projects

Compute the internal rate of return for both projects. Compute the NPV for both projects, using a cost of capital of 10 percent.

  What is the value of partner cash flow

What is the value of partner A’s cash flow from the Joint Venture under the 50-50 rule?

  The capital gain realized upon the sale of stock

How much, if any, was the capital gain realized upon the sale of stock?

  What is the expected value of price of stock after one year

What is the expected compound rate of return for an investor buying this stock? What is the expected value of the price of the stock after 1 year?

  Concerning the term structure of interest rates

Which of the following statements is correct concerning the term structure of interest rates?

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