Whose cost of capital is 10% is considering a projects x

Assignment Help Finance Basics
Reference no: EM13953253

Andrew Inc. whose cost of capital is 10% is considering a projects X, the details of which are:

                                 Year                                Project X

Initial Investment      0                                  $ 1,500,000

Cash Inflows              1                                  $ 250,000

                                   2                                  $ 350,000

                                   3                                  $ 400,000

                                   4                                  $ 500,000

                                   5                                  $ 650,000

Calculate:

a.) Net Present Value

b.) Profitability Index, 

c.) Internal Rate of Return

d.) Payback Period

e.) Discounted Payback Period

Reference no: EM13953253

Questions Cloud

Bernice purchased land and a building : Bernice purchased land and a building for use in connection with her business.
Calculate the experimental probabilities : Describe the steps necessary to calculate the theoretical probability of:
Problem regarding the effect of bond issuance : A bond with a face value of $10,000 is issued at a discount of $800 on January 1, 2014. The face rate of interest on the bond is 7%.
Describes the ethical principles and guidelines : The Belmont Report (U.S. Department of Health and Human Services, 1979) specifically describes the ethical principles and guidelines for research involving human subjects, which came about due to the abuse of human subjects in biomedical experime..
Whose cost of capital is 10% is considering a projects x : Andrew Inc. whose cost of capital is 10% is considering a projects X, the details of which are:
What is the probability that this number is 20 or more : A sample of 30 couples who have been married 10 years or less are selected from marital records available at a local courthouse. We are interested in the number of couples in this sample in which both spouses work. What is the probability that thi..
Denise and glenn file a joint return : Denise and Glenn file a joint return, how much of the $370,000 gain may be excluded from income
What percent of the population have iq scores : Studies of ‘‘intellectually gifted'' children have generally defined the lower limit of their IQ scores at 140; approximately 1% of the population have IQ scores above this limit. Find the standard deviation of this distribution.
How many people made a purchase at exactly one of the stores : How many people made a purchase at exactly one of the three stores?

Reviews

Write a Review

Finance Basics Questions & Answers

  Compute the expected net cash flow for year 10

Compute the expected net cash flow for year 10, the last year in the life of the project.

  An assistant manager at a local department store

Alexis Morris, an assistant manager at a local department store, gets paid every 2 weeks by direct deposit into her checking account. This account pays no interest and has no minimum balance requirement. Her monthly income is $4,200. Alexis has a "ta..

  The machine time constraint

A corporation produces three products. Information concerning the selling prices and unit costs of the three products appear below:

  What is the irr of the decision to forgo maintenance of the

Your firm spends $500,000 per year in regular maintenance of its equipment. Due to the economic downturn, the firm considers forgoing these maintenance expenses for the next three years. If it does so, it expects it will need to spend $2 million in y..

  You purchases a zero coupon bond one yr ago for 28083 the

you purchases a zero coupon bond one yr ago for 280.83. the market interest rate is now 9 percent. if the bond had 15

  Duration and the time to maturity

a. Calculate the duration for a bond that has a maturity of four years, three years, and two years. b. What conclusions can you reach about the relationship between duration and the time to maturity? Plot the relationship.

  Cash dividends without impairing its capital

Tangshan Mining has common stock at par of $200,000, paid in capital in excess of par of $400,000, and retained earnings of $280,000. In states where the firm's legal capital is defined as the par value of common stock, the firm could pay out ____..

  Illustrations of business risk measurement

Can you come up with some illustrations of business risk measurement where bell curve type analysis is inappropriate? This will take a little research on the Internet. Why may the bell curve be an inappropriate tool for looking at market risk? Fi..

  Wat does the auditors reference to generally accepted

what does the auditors reference to generally accepted accounting principles imply for our analysis of financial

  Suppose you have 10000 in funds that you wish to invest in

suppose you have 10000 in funds that you wish to invest in the stock market. what typeblue chip etc of stocks would

  By how much would the monetary base change

If the Fed bought $3.5 billion in government securities and the public withdrew $2.0 billion from their transactions deposits in the form of cash, by how much would the monetary base change?

  What is the most you are willing to pay as a lump

Atlas Insurance wants to sell you an annuity, which will pay you $3,200 per quarter for 25 years. You want to earn a minimum rate of return of 6.5 percent. What is the most you are willing to pay as a lump sum today to buy this annuity? please sho..

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