What is the project net present value

Assignment Help Finance Basics
Reference no: EM131387834

A project has an initial requirement of $59,171 for equipment. The equipment will be depreciated to a zero book value over the 5-year life of the project. The investment in net working capital will be $22,166. All of the net working capital will be recouped at the end of the 5 years. The equipment will have an estimated salvage value of $24,613. The annual operating cash flow is $52,652. The cost of capital is 10 percent. What is the project's net present value if the tax rate is 33 percent?

Reference no: EM131387834

Questions Cloud

Determining the weighted-average cost of capital : The CFO of your company has asked you to provide recommendation concerning which payment plan to accept. What is your recommendation? Assume your weighted-average cost of capital is 14%.
Explain whether el dorado is correct in its contention : El Dorado did not provide any proof showing the availability of comparable employment. Explain whether El Dorado is correct in its contention.
Provide decision in given condition : California and Hawaiian Sugar Company (C and H) is an agricultural cooperative in the business of growing sugarcane in Hawaii and transporting the raw sugar to its refinery in California for processing.
Develop a clinical question that lends itself to searching : The PICO (T) format is a way to develop a clinical question that lends itself to searching for evidence. Select a common nursing practice in your clinical setting and formulate a PICO question. Once you have formulated your question, conduct a libr..
What is the project net present value : The annual operating cash flow is $52,652. The cost of capital is 10 percent. What is the project's net present value if the tax rate is 33 percent?
Compute earnings per share under the gold plan : a. Compute earnings per share under the Gold plan. (Round your answer to 2 decimal places.) Earnings per share $
Explain critical insights that were shared by your peers : Explore critical insights that were shared by your peers and/or your instructor on the topic chosen and begin your search for scholarly sources with those insights in mind.
Provide an overview of the authors research problem : A critique is a method of displaying a logical and organized analysis of a written or oral piece. Critique can provide the readers with both positive and negative outcomes depending on the author. The purpose of this assignment is for the student ..
Demonstration of a scientific understanding of evolution : Write 10 Page essays, which should reflect each chapter themes in Why Evolution Is True. It should include your personal journey of discovery related to the concept of evolution. It should also include philosophical, theological, and sociological r..

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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