What is the value of the factory

Assignment Help Financial Management
Reference no: EM131973775

A factory costs $500,000. You forecast that it will produce cash inflows of $145,000 in year 1, $205,000 in year 2, and $350,000 in year 3. The discount rate is 10%.

What is the value of the factory? (Do not round intermediate calculations. Round your answer to 2 decimal Places.) Value of the Factory ……………………

Is the factory a good investment? Yes or no.

Reference no: EM131973775

Questions Cloud

What is self-supporting growth rate : How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate?
What rate is the lender more likely to quote on the loan : What rate is the lender more likely to quote on the loan? APR or EAR.
How can managers motivate employees through influence : How can managers motivate employees through influence? As a manager, how does the layout in your facility influence employees?
Discuss the impact of the changes in asset turnover : Briefly discuss the impact of the changes in asset turnover and financial leverage on the change in ROE from 2010 to 2014.
What is the value of the factory : A factory costs $500,000. What is the value of the factory?
Extensiveness of disney planning process : Comment on the extensiveness of Disney's planning process and its ability to react to updated data during the course of a day. What other types of industries
Explains how different methods are inadequate or lacking : Addresses the strengths and weaknesses of methods involved in creating a qualitative forecast. Essay explains how different methods are inadequate or lacking.
Gluon uses straight-line depreciation : What is the equivalent annual savings from the purchase if Gluon uses straight-line depreciation? Assume the new machine will have no salvage value.
Standards and guidelines pertaining to health records : What are the standards and guidelines pertaining to health records?

Reviews

Write a Review

Financial Management Questions & Answers

  What will be the actual percentage capital loss on each bond

What will be the actual percentage capital loss on each bond? What percentage capital loss would be predicted by the duration-with-convexity rule?

  A normal treasury yield curve demonstrates

A “normal” Treasury yield curve demonstrates that as time to maturity increases:

  Alternative offering prices on the existing price per share

The Newton Company has 125,000 shares of stock that each sell for $70. Suppose the company issues 10,000 shares of new stock at the following prices: $70, $55, and $50. What is the effect of each of the alternative offering prices on the existing pri..

  Expected one year holding-period return on xyrong stock

What is the intrinsic value of a share of Xyrong stock? what is your expected 1-year holding-period return on Xyrong stock?

  What is the accounts payable balance

What is the Accounts Payable balance in January.

  The loan is structured as an amortized loan

You borrowed ?$200,000 exactly 2 years ago. The loan is structured as an amortized loan. How much principal have you paid over the first 2? years?

  The subprime auto loan unit

Calvin is the director of the subprime auto loan unit of a large regional bank. What recommendations can you make to Calvin so he would have less concern about

  Why do we conduct an effectiveness analysis

Why do we develop alternative physical designs?- Why do we conduct a cost/benefit analysis?- Why do we conduct an effectiveness analysis?

  Yield to maturity remains unchanged

A bond has a par value of $1,000, a time to maturity of 20 years, and a coupon rate of 7.50% with interest paid annually. If the current market price is $750, what will be the approximate capital gain of this bond over the next year if its yield to m..

  Calculate the after-tax cost of debt under each conditions

Calculate the after-tax cost of debt under each of the following conditions: Interest rate of 13%; tax rate of 0%. Round your answer to two decimal places. % Interest rate of 13%; tax rate of 25%

  What is the dollar return and rate of return

Your next assignment is to assume that $10,000 was invested in the stock of General Medical Corporation with the intention of selling after one year. To begin, assume that the stock sale nets $11,500. What is the dollar return on the stock investment..

  Write out the security market line equation

Write out the security market line (SML) equation and explain each item.

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