What is the project NPV

Assignment Help Financial Management
Reference no: EM132025509

A project has annual cash flows of $6,000 for the next 10 years and then $8,500 each year for the following 10 years. The IRR of this 20-year project is 12.16%. If the firm's WACC is 9%, what is the project's NPV? Round your answer to the nearest cent. Do not round your intermediate calculations.

Reference no: EM132025509

Questions Cloud

Should cachita buy a put on yen or a call on yen : Cachita Haynes works as currency speculator for Vatic Capital of Los Angeles. Should Cachita buy a put on yen or a call on yen?
Weighted average cost of capital for new england singers : What is the weighted average cost of capital for New England Singers?
Relationship between bond prices and the YTMs : I only need to see the final graph. What is the relationship between bond prices (values) and the YTM’s?
Calculate the WACC of WTC : calculate the WACC of WTC.
What is the project NPV : A project has annual cash flows of $6,000 for the next 10 years. what is the project's NPV?
Thousands of dollars more in your savings for long term goal : your long-term savings in 10% instead of 2% means a difference of hundreds of thousands of dollars more in your savings for long term goals
What would be the yield to maturity for bond at that time : If the bond’s price five years from now is $1,105, what would be the yield to maturity for the bond at that time?
What was the original yield to maturity on the bonds : If the current price of the bonds is $875, what is the yield to maturity of the bonds TODAY?
Experiences permanent technological improvements : Suppose the US experiences permanent technological improvements such that its long run economic growth rate increases by 2%.

Reviews

Write a Review

Financial Management Questions & Answers

  What are the requirements for membership

Now that you have determined your preferred networking group/organization, write a two page paper, discussing what membership offers. Cite the positive opportunities this offers. Introduction: Name the organization. What are the requirements for memb..

  Expected return-standard deviation of return of portfolio

what are the expected return and standard deviation of the return of the portfolio? is the portfolio more risky than Safe Inc. Explain?

  Lockboxes should be located

Lockboxes should be located?

  Bond yields to respond to the macroeconomic events

How would you expect the spreads in bond yields to respond to the following macroeconomic events?

  What is portfolio return

Portfolio Return At the beginning of the month, you owned $6,500 of Company G, $8,900 of Company S, What is your portfolio return?

  Introduce and explain the capital asset pricing model

Introduce and explain the Capital Asset Pricing Model. What is it intended to calculate, and why is it useful in finance?"

  What is fund required rate of return

If the market's required rate of return is 12% and the risk-free rate is 5%, what is the fund's required rate of return?

  Under the cash basis of accounting

Smith Inc. reported sales revenue of $4,600,000 in its income statement for the year ended December 31, 2015. Additional information is as follows: 12/31/14 12/31/15 Accounts receivable $1,000,000 $1,300,000 Allowance for uncollectible accounts (60,0..

  Would there be a need for ethical decision making. why

If everyone followed the rules and guidelines of logic, would there be a need for ethical decision making? Why?

  Investment return-what was your percent return

Investment Return MedTech Corp stock was $51.80 per share at the end of last year. Since then, it paid a $1.30 per share dividend. The stock price is currently $63.35. If you owned 300 shares of MedTech, what was your percent return?

  Examine the assets and liabilities of commercial banks

Examine the assets and liabilities of commercial banks from 2005 to 2010. Since 2005, what has happened to the value of real estate loans? How is this change connected to the financial crisis?

  Distinguish between intangible and goodwill on balance sheet

In accounting terms, distinguish between intangibles and goodwill on a balance sheet. Why do these two items generally stay the same on projected financial.

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