What would be the Net present value of this project

Assignment Help Financial Accounting
Reference no: EM132944051

Question - Spartun's Inc is considering a new project which requires cash investment of 700,000 at year 0 and 1,000,000 at year-1. Project will generate cash inflows starting from year-2 of 250,000, 300,000 in year-3, 350,000 in year-4 and 400,000 each year till end of year-10. If the investors required a return of 15%, what would be the Net present value of this project?

Reference no: EM132944051

Questions Cloud

What is the value of the bond : To expand its business, the BBQ factory would like to issue a bond with par value of $1,000, What is the value of the bond
What is the total rate of return on the bond : Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually. What is the total (6-month) rate of return on the bond
Prepare the stockholders equity section of the balance sheet : The corporation earned a total of $1,800,000. Prepare the stockholders' equity section of the balance sheet at December 31, 2011
What are net present values of expected future cash flows : On the basis of the current value of business as of January 1, 2021, what are the net present values of the expected future cash flows
What would be the Net present value of this project : Spartun's Inc is considering a new project which requires cash investment of 700,000 at year 0. What would be the Net present value of this project
What is Bramble net income for the year ending October : Cash paid for computers on November 1, 2016 that will be used for 3 years 23520. What is Bramble net income for the year ending October
Calculate the incremental per share effect : Calculate incremental per share effect (dilution index) for potentially dilutive securities and indicate their order of entry into calculation of diluted EPS
Compute Nancy and Steve adjusted gross income : Personal loan to friend that became uncollectible due to friend's untimely death $12,000. Compute Nancy and Steve's adjusted gross income for 2019
What proportion of the additional cost in Dept : If in Dept. 2 product B is no longer considered a by-product but a joint cost product, what proportion of the additional cost in Dept. 2 should be allocated

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