Intro Finance Assignment Help, Other Engineering

Intro Finance Assignment Help, Other Engineering

Assignment Help:

QUESTION 2: Wing Yin Tsui, CEO of Lian Huang & Wong Bin Dean Hwang Manufacturing Limited is considering a four year project. The project requires an initial investment of $10,000,000 to buy new equipment. The equipment will be depreciated straight line to zero over the project’s life. The company believes it can generate $5,000,000 in pretax revenues in year 1. Revenues will increase at 20% per year. Total pretax operating cost would be 40% of the pretax revenues. Net working capital will be 20% of the pretax revenue for the year. Net working capital will be fully recovered at the end of the project. Revenues and operating costs will occur at the end of the year and investment in net working capital will be made at the beginning of the year. The tax rate is 40% and the discount rate is 12%.

1) What is the NPV of the project?

2) Now compute the project’s NPV assuming the project is abandoned after one year. The equipment will be salvaged for $8,000,000. Any gain or loss due to selling the equipment for other than the book value will create taxable gain/loss.

Related Discussions:- Intro Finance Assignment Help

Diffuser action-aircraft maintance, Diffuser action: The flare, which i...

Diffuser action: The flare, which increases the area of the duct, is known as a diffuser and its shape determines the rate of compression and the amount by which the air is com

Isdn service characterization, what is isdn service characterization

what is isdn service characterization

Thermo electric thermometer, how thermoelecteric thermometer is contructed ...

how thermoelecteric thermometer is contructed and how it working

Which scheme provides the best spectrum capacity, Question: (a) What a...

Question: (a) What are the criteria that a frequency planner and a network engineer need to consider during cellular planning and design. (b) Assuming that you work as a c

Materials, Why Industries that manufacture racing cars prefers nickel based...

Why Industries that manufacture racing cars prefers nickel based alloys for engine components and iron based alloys for structural parts?

Asset allocation, 7 refer(s) to the ability to convert assets to cash quick...

7 refer(s) to the ability to convert assets to cash quickly and at a fair market price and often increase(s) as one approaches the later stages of the investment life cycle

Abradable linings-aircraft engine, Abradable Linings: Abradable Linings...

Abradable Linings: Abradable Linings are usually made of a composite material which will be abraded away should the tip of a rotating blade touch the material. In flight the ca

Function generator, Expertsmind.com brings you unique solution in electri...

Expertsmind.com brings you unique solution in electrical engineering What is a function generator? A function generator is a part of electronic device that prod

Digital electronics, i got a msg from u is that Dear Tutor ...

i got a msg from u is that Dear Tutor Congratulations!! You are successfully done with the process of quality check, now we are sending you the registration form

Electrical engineering (power system analysis), I have a project in power f...

I have a project in power flow analysis. The project topic is: Study of Load impact on power flow (constant power, constant impedance, constant current, induction motor) and use th

Write Your Message!

Name

Email id

Message

Verfication Code

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!

Submit Assignment

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd