What is the value of project

Assignment Help Macroeconomics
Reference no: EM132482928

A project has an initial cost of $1,000,000 and is expected to last for 2 years. In year 1, depreciation charge will be $100,000 and earnings are expected to be $147,940. In year 2, depreciation will be $100,000 and earnings are expected to be $189,446. Assume the required return is 14%. What is the value of this project?

Reference no: EM132482928

Questions Cloud

How much is net income : Alpha Company provided the following data concerning its income statement: sales, $1,040,000; purchases, $380,000; How much is net income
What is her CLV to Adidas : Marketing activities to get her to start using Adidas shoes are estimated at $50, Using a discount rate of 15%, what is her CLV to Adidas
What was the interest expense : INCOME STATEMENT Little Books Inc. recently reported $3 million of net income. Its EBIT was $6 million, and its tax rate was 40%. What was its interest expense?
Computing the residual earnings for 2016 : By the early of 2016, a firm had a book value per share (BPS) of $46, a ROCE of 16% for 2016. If the required return is 9%, what is the Residual earnings for 20
What is the value of project : In year 2, depreciation will be $100,000 and earnings are expected to be $189,446. Assume the required return is 14%. What is the value of this project?
How much is the gross profit margin : Sales returns and allowances, $5,000, Interest expense, $3,000 and Selling expenses, $12,000. How much is the gross profit margin
Was postponing her purchase a good trade-off for dorothy : From the financial standpoint, was postponing her purchase a good trade-off for Dorothy? Dorothy lacks cash to pay for a $1,680 dishwasher
What should be the yield on a one year bond in two years : Under the expectations theory what should be the yield on a one year bond in two years?
What do you think about nuclear energy : What do you think about nuclear energy as a source to help ease our energy problems? Proponents argue that it is clean and that new technologies are making it

Reviews

Write a Review

Macroeconomics Questions & Answers

  Will the policy have a larger effect on smoking 1 year

Studies indicate that the price elasticity of demand for cigarettes is about 0.4. if a pack of cigarettes currently costs $2 and the government wants to reduce smoking by 20%, by how much should it increase the price

  Suppose that the public taste changes

How would you expect such a change to affect output, and the real wage in the classical model?

  Relationship between elasticity and profit maximizing price

Determine the profit-maximizing prices both firms will charge. In addition, calculate the price-cost margin for each firm and indicate which has more pricing power and why.

  Robot x has a first cost of 84000 an annual maintenance and

robot x has a first cost of 84000 an annual maintenance and operation mampo cost of 31000 a 40000 salvage value and

  Illustrate what is the tolal accounting cost

Illustrate what is the tolal accounting cost. Illustrate what is the total economic cost. Elucidate why these are different in this way.

  Discuss advantages or disadvantages of buying imports

The purpose of this assignment is to become familiar with the terms import and export, and then discuss advantages or disadvantages of buying imports

  Consider the market for electricity suppose demand in

consider the market for electricity. suppose demand in megawatt hours is given by q50-p and that the marginal private

  What is the inflation rate

Suppose the money supply grows at a constant rate of 4%/year. What is the inflation rate? What's the nominal interest rate? What would be different if money growth were higher or lower (say, 2% or 10%)?

  What is the marginal physical product of the fifth worker

Suppose that a firm’s only viable input is labor. The firm increases the number of employees from four to five, thereby causing weekly output to rise by two units and total costs to increase from $3,000 per week to $3,300 per week.

  Production function is the following

Suppose XYZ Corporation has a technology that uses only labor (L) and the production function is the following: one unit of labor will produce one unit of output (x), i.e., x=L. Also suppose that the firm can buy as much labor as it would ever wan..

  What will be the effect of the immigration on wages

What will be the effect of this immigration on wages in each of the regions in the short run (before any migration between the North and the South occurs)?

  International trade or international finance issues

You will need to find 2 current event news articles (the articles must published between September 5-11, 2016) related to international economic issues.  Articles must include either international trade or international finance issues

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