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

Recovery and recrystallization, Q. What is Recovery and Recrystallization? ...

Q. What is Recovery and Recrystallization? Ans. Due to the cold working of metals there arise a large number of dislocations and distortion of planes. Cold working of metals

Aviation legislation - maximum take-off mass, Aviation legislation - MAXIMU...

Aviation legislation - MAXIMUM TAKE-OFF MASS: Aircraft companies intending to manufacture a new design must have approval under Chapter A8-1 of BCAR or JAR-21 (Certification Pr

A/c question 1, Briefly describe a simple method of estimating summer outsi...

Briefly describe a simple method of estimating summer outside air conditions for the design calculations of an air conditioning scheme. If a more accurate assessment of heat gains

Finance, Let C(K) denote a European vanilla Call option with strike price K...

Let C(K) denote a European vanilla Call option with strike price K. Assume that all options are identical except for strike price, and strike prices satisfy (K1) What are the no-

System engineering approches, how todays manufacturing industry lagging wit...

how todays manufacturing industry lagging with system engineering approaches

Material science and engineeing, cite advantages of forming metal by extrus...

cite advantages of forming metal by extrusion as opposed to rolling

Circuit analysis, pls reply fast

pls reply fast

Conceptual models, Can you describe an example of a conceptual model?

Can you describe an example of a conceptual model?

Isdn, Explain the meaning of numbering and addressing in ISDN network.

Explain the meaning of numbering and addressing in ISDN network.

Automatic interior car lights control, hi there, i need to know if its poss...

hi there, i need to know if its possible to create a circuit of automatic interior car lights control

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