What is the project npv of five stars inc

Assignment Help Finance Basics
Reference no: EM132411025

Five Stars Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of 3.9 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,650,000 in annual sales, with costs of $840,000. Suppose the project requires an initial investment in net working capital of $300,000 and the net working capital will be fully recovered at the end of the project. If the tax rate is 21% and the required rate of return on the project is 12%, what is the project's NPV?

Reference no: EM132411025

Questions Cloud

How will the given program impact your career growth : Tell us about yourself and your personal journey that has lead you to University of the Cumberlands. What is your current job/career and how will this program.
PUBH632 Public Health Law and Policy Assignment : PUBH632 Public Health Law and Policy Assignment Help and Solution, Australian Catholic University - Assessment Writing Service Ministerial Briefing Note
How to identify secondary data sets : Post a brief description of how to identify secondary data sets. Then, provide two strengths and two limitations to using secondary data sets.
Analyze the design given in terms of appropriateness : Analyze the design given in terms of appropriateness, assumptions, strengths and weaknesses, and threats to internal and external validity.
What is the project npv of five stars inc : Five Stars Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of 3.9 million.
Discussion - Personal Experience of Privilege and Stigma : Discussion - Personal Experience of Privilege and Stigma. Review the "Framework Essay" in Section I, the "Framework Essay" in Section II
Determine the pure level premium per year : The appropriate interest rate is 5%. Determine the pure level premium per year. The probability is not provided.
Finding the effective annual rate for loan : Compare the 120 day and 90 day rates on the loans by finding the effective annual rate for each loan. Assume each loan is rolled over throughout the year
Describe how the outcomes will be measured and evaluated : Describe how the outcomes will be measured and evaluated based on the evidence. Address validity, reliability, and applicability.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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