What is the project npv in the most likely scenario

Assignment Help Basic Computer Science
Reference no: EM132043501

The most likely outcomes for a particular project are estimated as follows:

Unit Price: $50                                  Variable Cost: $30

Fixed Cost: $300,000                       Expected Sales: 30,000 units/year

However, you recognize that some of these estimates are subject to error. Suppose that each variable may turn out to be either 10% higher or 10 lower than the original estimate. The project will last for 10 years and requires an initial investment of $1 million, which will be depreciated straight-line over the project life to a final value of zero. The firm's tax rate is 35%, and the required rate of return is 12%.

a) What is the project's NPV in the most likely scenario?

Reference no: EM132043501

Questions Cloud

You will trade in a vehicle that has payments : You want to buy a car that has a price of $25,000. You will trade in a vehicle that has payments of $277.84 per month. You have 3.0 years left at an APR of 6%
How the issue is currently being addressed : Research how this issue is currently being addressed. Do you think this is a good strategy, or can this issue be addressed in a better way?
How much did you make or lose : If you bought 10 contracts (1 contract = 100 options) of the 50 strangle for $8 (the cost of the put and call together was $8), and the stock was $55
Post an explanation of a threat to internal validity : Post an explanation of a threat to internal validity and a threat to external validity in quantitative research. Next, explain a strategy to mitigate each.
What is the project npv in the most likely scenario : The firm's tax rate is 35%, and the required rate of return is 12%. a) What is the project's NPV in the most likely scenario?
What annual interest rate must they earn to reach their goal : What annual interest rate must they earn to reach their goal, assuming they do not save additional funds?
Beliefs about insurance and the risk management industry : Without becoming negative or disparaging specific companies, what do you believe are some misconceptions or beliefs about insurance and the risk management?
What is the pv present value of this cash flow stream : If the relevant discount rate for the entire period is 10%. What is the PV (present value) of this cash flow stream?
Analyze the sustainability problems in detail : Analyze the sustainability problems that affect Delawares contaminated drinking water and propose a solution. This project will require a problem statement.

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Growing significance of data and databases

Read through the article Big Data basic concepts and benefits explained. Focus on why this has become a hot topic in the business world.

  Describe the make-up of a predefined structure

Describe the make-up of a predefined structure.

  Replication strategy for bayside memorial

Submit a Word document that outlines your replication strategy for Bayside Memorial's network.

  Discuss the various type constructors

Discuss the various type constructors.

  Existing computerized process

Think of a simple process from your own experience that could be modeled with a FSM and post it to the forum.

  Which is the faster algorithm in these two cases

Algorithm X requires n2 + 9n + 5 operations, and Algorithm Y requires 5n2 operations. What can you conclude about the time requirements for these algorithms when n is small and when n is large? Which is the faster algorithm in these two cases?

  Review case of the gregor mendel

Gregor Mendel's early work laid the foundations for modern genetics. In one series of experiments with several generations of pea plants.

  Discuss the backend methods for providing logins

1. Discuss the backend methods for providing logins on a network service running on a Linux/UNIX server.

  Discuss why the user needs are important or stood out

Cite specific examples from readings. Include personal experience with the topic if appropriate

  Sources of information security threats

Trojan horse attacks pose serious threats to computer security. There is specialized anti-Trojan software designed to detect Trojans

  Mining hidden value in deep web-challenges and opportunities

In the answer you should Demonstrates a commendable ability to engage independently in investigating and researching material with a breadth of reading substantiated with credible and accurate referencing.

  Benchmarking could benefit chesapeake energy corporation

Give specific examples of factors that would be evaluated and identify at least two rival firms that could be used in the comparison.

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