What was salems expected net present value for this project

Assignment Help Project Management

Reference no: EM1343116

Salem Co. is considering a project that yields annual net cash inflows of 420,000 for years 1 through 5, and a net cash inflow of 100,0000 in year 6. The project will require an initial investment of $1,800,000. Salem's cost of capital is 10%. Present value information is presented below.

Present value of $1 for 5 years at 10% is .62.
Present value of $1 for 6 years at 10% is .56.
Preset value of an annuity of $1 for 5 years at 10% is 3.79.

What was Salem's expected net present value for this project?

a) 83,000
b) (108,000)
c) (152,200)
d) (442,000)

Reference no: EM1343116

Questions Cloud

Explain what is the relevant cost : Explain what is the relevant cost of the 220 kilograms of the raw material when deciding weather to proceed with the special project.

Find the cost benefits analysis : Explain how do you ensure that the requirements are fully developed and vetted by project SMEs so that the risk of a scope increase is low?

How the project aligned with business goals : Explain a situation in which a project was not clearly aligned with business goals and was the project successful

What are the main reasons for it project failure : what is the most important thing that management can do to increase the likelihood of IT project success

What was salems expected net present value for this project : Present value information is given below so what was Salem's expected net present value for this project

Requirements of a good project manager : Requirements of a Good Project Manager - Apply human resource knowledge area to project initiating and planning processes

Career management system : What are the manager's roles in a career management system and which role do you think is most difficult for the typical manager?

Project planning and project management presentation : Prepare a presentation covering the following: the benefits of project planning and project management within the various types of organizational systems

Review of business article on project management : Who is potentially affected by the issue and was the article well written

User Account

All Pages