What is the value of the project to the company

Assignment Help Financial Management
Reference no: EM13972491

Our company is considering a project that will provide the following after tax cash flows to the firm: CF1 90,000 CF2 125,000 CF3 175,000 CF4 200,000 CF5 190,000 CF6 – 9 165,000 CF10 145,000 If we have a required return of 14% for this project, what is the value of the project to the company? If we had to pay 700,000 for the project today, should we purchase the project? 5) When you retire you will initially require an annual income of 125,000 per year. You anticipate living for 25 years during retirement with an 8% investment return. How much do you need in your pension plans to cover this need? How much will you have to invest monthly over the next 35 years to acquire that amount of money, if you can earn 13% on your investments?

Reference no: EM13972491

Questions Cloud

What is the amount of the firms ebit : Advantage First Corporation has sales of $4497277; income tax of $324748; selling, general, and administrative expenses of $275122; depreciation of $303941; cost of goods sold of $2812586; and interest expense of $161713. What is the amount of the fi..
Calculate the result of the operator-commutator : Calculate the result of the operator-commutator [x, pˆx] = (x pˆx - pˆx x) acting on a function f(x), using theproduct rule where necessary (pˆx = -i~∂∂x , or pˆx = -i∂∂x if you use atomic units). Next, calculate [x, pˆy]by applying it to a function ..
How much do you need in your pension plans to cover need : When you retire you will initially require an annual income of 125,000 per year. You anticipate living for 25 years during retirement with an 8% investment return. How much do you need in your pension plans to cover this need? How much will you have ..
Significance of minor characters ben and charlie : Is Willy Loman a sympathetic character? Why or why not? Be specific. Explain in detail the significance of minor characters Ben and Charlie
What is the value of the project to the company : Our company is considering a project that will provide the following after tax cash flows to the firm: CF1 90,000 CF2 125,000 CF3 175,000 CF4 200,000 CF5 190,000 CF6 – 9 165,000 CF10 145,000 If we have a required return of 14% for this project, what ..
Estimate the break-even point : A company sells car batteries for $80 each and expects to sell 200,000 units. The variable costs is $28 and fixed costs is $1,000,000. Estimate the break-even point.
Billion of new currency into checking accounts : The maximum amount by which this commercial banking system can expand the supply of money by lending is? 2. If there is a deposit of $20 billion of new currency into checking accounts in the banking system , excess reserves will increase by?
Calculate the firms net income : Garden Pro Corporation has sales of $4123085; income tax of $384170; selling, general, and administrative expenses of $227381; depreciation of $311407; cost of goods sold of $2450664; and interest expense of $175189. Calculate the firm's net income.
Find the magnification of the object : Use your ruler to draw the rays which will give you the location of the final image . Find the magnification of the object.

Reviews

Write a Review

Financial Management Questions & Answers

  Net change in income if new credit terms are adopted

Dome Metals has credit sales of $180,000 yearly with credit terms of net 60 days, which is also the average collection period. Assume the firm adopts new credit terms of 3/18, net 60 and all customers pay on the last day of the discount period. If Do..

  What is the companys required return

CAPM Required Return A company has a beta of .67. If the market return is expected to be 13.7 percent and the risk-free rate is 5.85 percent, what is the company's required return?

  Annual effective interest rate

Eliza takes out a $36000 loan at an annual effective interest rate of 6%. It is agreed that at the end of each of the first six years she will pay $1800 in principal, along with the interest due, and that at the end of each of the next eight years sh..

  What types generate the highest acquisition costs

What types of bank liabilities generate the highest servicing costs? What types generate the highest acquisition costs?

  Se straight-line depreciation to zero over the projects life

You are evaluating two different silicon wafer milling machines. The Techron I costs $213,000, has a three-year life, and has pretax operating costs of $54,000 per year. The Techron II costs $375,000, has a five-year life, and has pretax operating co..

  Purchase a corporate bond

You want to purchase a corporate bond. Ford has one available that matures in 2026 and is currently quoted at 108.75. You see that the coupon rate is quoted as 6.5 and the bond pays coupons on June and December 30th.It is now July 7th.What is the pri..

  Evaluating an extra dividend versus share repurchase

Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $21,060 would be spent. Current earnings are $3.60 per share, and the stock currently sells for $90 per share. What will Flashback’s EPS and PE ratio be ..

  Statements concerning liquidity

Which one of the following statements concerning liquidity is correct?

  Firms expenditures on fixed assets-net operating capital

Maze Co. recently reported operating income of $6.45 million, depreciation of $1.22 million, and had a tax rate of 40%. The firm's expenditures on fixed assets and net operating working capital totalled $0.8 million. How much was its free cash flow, ..

  Should the firm make the investment

Tangshan Mining Company is considering investing in a new mining project. The firm’s cost of capital is 12 percent and the project is expected to have an initial cost of $5,000,000. Calculate the project’s NPV. Should the firm make the investment?

  What are the three distinct types of business activity

What are the three distinct types of business activity in which companies engage? Assume that you start your own company to rent bicycles in the summer and skis in the winter. Give an example of at least one of each of the three types of business act..

  What is advances pretax cost of debt

Advance, Inc is trying to determine its cost of debt. The firm has a debt issue outstanding with 10 years to maturity that is quoted at 108 percent of face value. The issue makes semiannual payments and has a coupon rate of 9 percent annually. What i..

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