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

#magnetic circuit, an iron ring with amean dia of 50 cm has an air gap of 1...

an iron ring with amean dia of 50 cm has an air gap of 1mm awinding of 200 turns if the permeability of the iron is 400 when a circuit of 1.25A flows through the coil find the flux

Adders and subtractors, Adders & Subtractors Adder and Subtractor circui...

Adders & Subtractors Adder and Subtractor circuits are used to perform basic calculations in computer systems. Adders, as their name suggests, add binary digits. Since binary

Class number arrangement - library management, Class Number Arrangement ...

Class Number Arrangement Unlike the Cities Numbers of Dewey Decimal Classification the Colon Class Numbers have not only Arabic Numerals but also capital letters of the Roman

Fuel flow metering-aircraft engine, FUEL FLOW METERING: Fuel flowmeters...

FUEL FLOW METERING: Fuel flowmeters are fitted in aircraft to give an accurate indication of the rate at which fuel is being used and the total amount of fuel that has been use

Water traetment, what are the different phosphates used in water treatment?...

what are the different phosphates used in water treatment?

Analytical chemistry.., two types of ISE FOUND IN LABORATORY

two types of ISE FOUND IN LABORATORY

Survey, what are the obstacles which are likely to encounter chain survey a...

what are the obstacles which are likely to encounter chain survey and how to overcome them.

The research about thermoset polymer products, Chemical Engineering The re...

Chemical Engineering The research about thermoset polymer products. For example Polyimide Film Thermosetting and Pressure-Sensitive Adhesive Tape.

Assignment help, need help with energy engineering assignment,environment t...

need help with energy engineering assignment,environment technology assignment,mechanical assignment

Arc Length and Welding Voltage, Can I have the difference between the two

Can I have the difference between the two

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