What is the project NPV

Assignment Help Financial Accounting
Reference no: EM133101320

Questions -

1. An all-equity firm is analyzing a potential project that will require an initial, after-tax cash outlay of $50,000 and after-tax cash inflows of $6,000 per year for 10 years. In addition, this project will have an after-tax salvage value of $10,000 at the end of Year 10. If the market rate percentage was 12%, what is the project's NPV?

2. A project requiring a $180,000 initial investment will provide operating cash inflows of $55,000, $80,000, and $110,000 in each of the next years. The NPV of the project (at the firm's 12% cost of capital) is $18,867, and its IRR is 16%, so clearly the project is acceptable.

Reference no: EM133101320

Questions Cloud

Managing internal communications : Your company has charged you with managing internal communications for its upcoming 50th anniversary.
What is the company degree of operating leverage : The company has no beginning or ending inventories. A total of 20,000 units were produced and sold last month. What is the company degree of operating leverage
How much is the annual income tax : Ms. Joan is a call center agent earns Php 425,000 annually, with an annual contribution of PhP 17,172. How much is the annual income tax
Muddling of culture concepts : Describe a worst case scenario involving the muddling of culture concepts. Determine the steps you can take to ensure something similar never happens to you.
What is the project NPV : This project will have an after-tax salvage value of $10,000 at the end of Year 10. If the market rate percentage was 12%, what is the project's NPV
Define the pros and cons of the three positioning choices : Based on Landor's research, elaborate on the CCD brand's strengths and weaknesses?
Different barriers to effective listening : Describe three different barriers to effective listening and how they develop in the workplace.
What is the balance of lease liability on January : On January 1, 2021, AA Inc. leased a machine with remaining useful life of 14 years. What is the balance of lease liability on January
Examine various earthquake hazards : What is the name of the earthquake hazard that can develop along convergent boundaries which is capable of bringing death and destruction to distant shorelines

Reviews

Write a Review

Financial Accounting Questions & Answers

  Post the transactions to the appropriate t-accounts

Post the transactions to the appropriate T-accounts. (For each T-account, enter answers in the in the first available space debit or credit space, as appropriat

  Question one of the characteristics unique to governmental

question one of the characteristics unique to governmental and not-for-profit organizations is the inability to remove

  Prepare the journal entry to record the registration

Prepare the journal entry to record the (1) registration of the trademarks on June 1, and (2) legal costs on December 1

  Prepare the reconciliation to company records

A credit of $1905 for the collection of an $1800 note receivable, Prepare the reconciliation to company records - cash at bank ledger account.

  How ensure that managers and supervisors in organisation

How can ensure that managers and supervisors in the organisation understand the budget and understand their reporting requirements with regard

  What are accountants role in changing depreciation methods

What are the ethics and governance of depreciation in AASB116? Also the circumstances of stratght - line method and sum-of-years'-digits method?

  Determine diekow production''s direct materials price

Calculation of materials price and quantity variances -  Determine diekow production's direct materials price and quantity variances for the year.?????

  Human resources department costs to operating division

Calculate allocation from service to line departments using the direct, step, and reciprocal methods for Homestead Inc. Homestead Pottery Inc. is divided into two operating divisions: pottery and retail.The company allocated power and human resources..

  Calculate the amount of income tax expense as at december

P owns 55% of S. Calculate the amount of income tax expense as at December 31 appearing on the 2019 Consolidated Income Statement.

  Calculate as the stand-alone selling price

What amount would Monitor calculate as the stand-alone selling price of the five year right to operate as a Monitor Muffler retail establishment

  What jetco competitive advantage protected against imitation

What JetCo's competitive advantage is protected against imitation by? JetCo's competitors have tried very hard but they been unable to figure out.

  What are the categories of behaviors that are measured

What are the categories of behaviors that are measured and observed in the strange situation

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