What net present value at discount rate of twelve percent

Assignment Help Financial Accounting
Reference no: EM132770415

Problem 1: Dennis wants to determine if the discount rate really makes any difference in the net present value of a project. He feels that if a project is acceptable at one rate of return, it will be acceptable at all rates of return. To explain why his thinking is incorrect, you are creating an example to illustrate your point. The cash flows you are using are as follows: time zero is -$71,000, years 1 through 4 are $17,500 each, and years 5 and 6 are $22,500 each. What is net present value at a discount rate of 12 percent and 17 percent?

Reference no: EM132770415

Questions Cloud

Write a paper on sea-launched ballistic missiles : Write a paper on sea-launched ballistic missiles and their re-entry vehicles. Include a short history of SLBM's and special considerations for sea launch.
Which is not a true statement about net present value : Which is NOT a true statement about net present value (NPV) analysis? The firm's after-tax marginal cost of capital is the appropriate discount
Describe use of big data analytics in e-healthcare industry : As outlined within this weeks topic, there are several benefits as well as challenges associated with the use of Big Data Analytics in the e-Healthcare industry
How much would she have after the same three time? periods : Shaylea, age? 22, just started working? full-time and plans to deposit ?$5,800 annually into an IRA earning 10 percent interest compounded annually
What net present value at discount rate of twelve percent : Years 1 through 4 are $17,500 each, and years 5 and 6 are $22,500 each. What is net present value at a discount rate of 12 percent and 17 percent?
Expand the money supply : Could you give some examples of actions people or organizations might take to work against the Fed trying to expand the money supply?
Find what is the payback period for anderson inc : Find What is the payback period? The project will produce cash inflows of $9,000 a year for the first year and $10,000 a year for the following three years.
Differences in transactional and transformational leadership : Evaluate and discuss the differences between transactional and transformational leadership. What kind of leader are you? Why do you feel this way?
Analyze Anti-Miscegenation Statutes in the United States : Assignment - The Statutes - Research, review, and analyze Anti-Miscegenation Statutes in the United States and choose two relevant cases

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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