What is the project npv

Assignment Help Basic Computer Science
Reference no: EM132022574

Sam Corp. is considering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3-year life, would have a zero-salvage value, and would require some additional working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? WAAC = 12%, tax rate = 35% (Hint: Cash flows are constant in Years 1 to 3.)  Show work.

Net investment in fixed assets (basis)          $75,000

Required new working capital                      $15,000

Sales revenues, each year                          $75,000

Operating costs (excl. deprec.), each year    $25,000

Reference no: EM132022574

Questions Cloud

What are the application softwares work and play : What are the application softwares work and play explain brefily? What are the identification and assment of emerging technologies?
Describe an organizational culture : HRMN 367 : Analyze an organizational culture. This could be the organization you work with, or it could be some other organization to which you have access.
Appropriate for the client to receive appropriate : Explain why it might be appropriate for the client to receive appropriate financial advice.
Plans to issue perpetual preferred stock : Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. What is the cost of the preferred stock, including flotation?
What is the project npv : What is the project's NPV? WAAC = 12%, tax rate = 35% (Hint: Cash flows are constant in Years 1 to 3.) Show work.
What would be cost of new equity : New stock can be sold to the public at the current price, but a flotation cost of 5% would be incurred. What would be the cost of new equity?
These two projects are equally risky : These two projects are equally risky and about as risky as the firm's existing assets. What is its cost of common equity?
Salvage value for use in a capital budgeting analysis : What is the equipment's after-tax salvage value for use in a capital budgeting analysis? Note that if the equipment's final market value is less than its book
What is the significance of cayman island : Alexis, a high net worth customer, banks online at Security Bank and Trust (SBT) and has agreed to use 3DES (also known as Triple DES) encryption .

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Business consultant to a firm of choice

Imagine you are a business consultant to a firm of your choice. You have been asked to analyze, advise and create recommendations.

  Determine the change in the net work output per unit mass

Consider a simple ideal Brayton cycle with air as the working fluid. The pressure ratio of the cycle is 6, and the minimum and maximum temperatures are 300 and 1300 K, respectively.

  Describe the necessary hardware and software components

Your company wants to create an application that allows employees to dial in from a remote location and, using a single connection, access their voice mail, e-mail, and data files.

  How did the attacker break into the system

What is the ip address/country of the attacker and victim machines and What is the operating system of the victim machine?How did the attacker break

  What are the arguments for and against brainstorming

What are the arguments for and against brainstorming? If you were Joseph Keith, would you vote for or against the continuation of the brainstorming sessions?

  Cost-minimizing solution for product

A product has a demand of 507 units per year. Ordering cost is $71 per order, and holding cost is $9 per unit per year. The cost-minimizing solution for this product is to order how many units at a time? (round to the nearest integer)

  Write a program that plays the game tic-tac-toe

Once you have created the dictionary, use it to decide the moves for a computer-based player in a game of tic-tac-toe.

  Deciding between two approaches to trade policy

Suppose a country is deciding between two approaches to trade policy: one approach is to regulate a side range of industries and products.

  What are the next significant technological innovations

What are the next significant technological innovations. This week's reading introduces the software development lifecycle model and discusses how information systems are developed. Explain why having a standardized systems development process is i..

  Cross-tabulations called contingency tables

When are cross-tabulations called contingency tables?

  Determine the ratio of the mass flow rates of the feedwater

Determine the ratio of the mass flow rates of the feedwater and the superheated vapor for this case.

  Elaborating the functions of the administration

Introduction: It presents the main idea of the essay, briefly elaborating the functions of the administration.

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