What is the project npv

Assignment Help Business Management
Reference no: EM131702650

Sextet Corporation is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset is classified as a five-year asset under MACRS for taxes and will be depreciated straight-line to zero over the three-year project life for book accounting. At the end of the project, Sextet believes the asset can be sold for $800,000. The project is estimated to generate $2,160,000 in annual sales, with annual costs of $855,000. Net working capital for the project is expected to be $425,000. The tax rate is 34 percent and the required return on the project is 10 percent. What is the project's NPV?

Reference no: EM131702650

Questions Cloud

Discuss about international power relations : The things that are usually forgotten is the underdevelopment which is rooted not only in international power relations, but also in the power relations
Difference between the present values of the two options : In other words, which option has the higher total present value? What is the difference between the present values of the two options?
Can the girls club articulate a bonafide business reason : Can you suggest a theory under which Chambers could challenge her discharge based on race discrimination? Can the Girls Club articulate a bonafide business.
Explain the differences between push and pull systems : escribe the meaning of waste in JIT? Explain the differences between "push" and "pull" systems ?
What is the project npv : The tax rate is 34 percent and the required return on the project is 10 percent. What is the project's NPV?
How was anthropology evolved over the past century : How was anthropology evolved over the past century, What contributions can anthropology provide to aboriginal people today
Determine the construction interest to be capitalized : Tuna Company is building a new office and conference center for $33,000,000. Determine the construction interest to be capitalized
What is m basis in the option : Assume that M pays $300 premium to the option writer, and further that M pays $25 commission to her broker. What is M's basis in the option?
Define the complex procedures in the school tenure code : King was hired by the University of Minnesota as a full, tenured professor in 1990. He was appointed to the Afro-American Studies Department and later became.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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