What is the projects npv

Assignment Help Finance Basics
Reference no: EM133665237

Problem: CQU is considering a research project that requires an initial investment of $42,000 and returns after-tax cash inflows of $7,000 per year for 10 years. The firm has a maximum acceptable payback period of 8 years. Assume the cost of capital is 10% per annum. what is the project's NPV?

Reference no: EM133665237

Questions Cloud

How much stock have to sell if flotation costs are expected : The Pandora Internet Radio Company was started in 2000. How much stock would they have to sell if flotation costs are expected to be 13 percent?
How the majority world church is viewed by the world bank : Why would the Majority World church be an ideal partner when responding to an emergency overseas?
Discuss risks and financial factors associated with exchange : Discuss risks and financial factors associated with exchange rates and interest rates for assessing how they inform Apple Inc.'s financial management approach.
Why is army force development significant : Why is Army Force Development significant?
What is the projects npv : The firm has a maximum acceptable payback period of 8 years. Assume the cost of capital is 10% per annum. what is the project's NPV?
What interest rate would the city of mitchell have to pay : What interest rate would the city of Mitchell have to pay in order to make Jackson indifferent between investing in the city of Mitchell and the Sundial?
What is the difference in the mrps on the two securities : What is the difference in the maturity risk premiums (MRPs) on the two securities; that is, what is MRP5 - MRP3? Do not round intermediate calculations.
How much does he need to contribute to his retirement fund : How much does he need to contribute to his retirement fund at the end of each year to accumulate enough by the day he retires?
How do her years of malthusian drill benefit her and society : Brave New World I Considering how "bottled" Leninais from her intake of soma, how do her years of Malthusian drill benefit her and the society?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price of the bond today

If the investors' required rate of return on this bond has stayed the same for 15 years, what is the price of the bond today?

  What is avicorps pre-tax cost of debt

Avicorp has a $11.7 million debt issue outstanding, with a 5.8% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value.

  How would you feel as an investor in a company

Do you agree with this arrangement? How would you feel as an investor in a company that utilizes carbon credits to legally exceed its pollution limits?

  Calculate the percentage of ownership in the company

Assume a venture capitalist requires a 40 percent rate of return per year. If the venture capitalist thinks that a company will be worth $50 million in 5 years,

  Foreign exchange loss incurred on the? transaction

Siam? Cement, the? Bangkok-based cement? manufacturer, suffered enormous losses with the coming of the Asian crisis in 1997. The company had been pursuing a ver

  Create a x-y scatter plot of your data

Create a X-Y scatter plot of your data, with the return on the stock as the vertical axis and the return on the market as the horizontal axis. Name this chart as SCATTER in your workbook and be sure to label the axes.

  Calculate the price elasticity coefficient

Suppose the quantity of fish purchased by mr. singh's family is 22 kilos per year. When the price is $10.50 per kilo and 18 kilo per year when the price is $10.

  What fraction of the payment made at the end

What fraction of the payment made at the end of the second year will represent repayment of principal?

  Calculate the effect on net income

Refer to the information in E5-19, but now assume that the balance of the Allowance for Uncollectible Accounts on December 31, 2012, is $1,000 (debit).

  Wizzkid inc is experiencing a period of rapid growth

1.an insurance company must make a payment of 19487 in seven years. the market interest rate is 6. the companys

  Available positive npv projects

1. What decision criteria should managers use in selecting projects when there is not enough capital to invest in all available positive NPV projects?

  Computation of present value

Determine the present value of your trust fund if it promises to pay you $50,000 on your 40th birthday seven years from today  and earns 10 percent compounded annually

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