Net present value of a proposed capital budgeting

Assignment Help Finance Basics
Reference no: EM13839106

Let's also make sure that you are comfortable calculating the net present value of a proposed capital budgeting project when the cash inflows are uneven.Given the following information, calculate the NPV: 


Initial investment is $50,000; 
inflows for the next four years are $12,000, $4,000, $12,000, $13,000 respectively. 
The required rate of return is 8%.

 

 

Reference no: EM13839106

Questions Cloud

Article about flow meter current trend : Article about flow meter current trend that I must do a summary of in 1 to 2 pages
What is the companys cost of equity capital : The Up and Comig Corporation's common stock has a beta of 1.05. If the risk-free rate is 5.3 percent and the expected return on the market is 12 percent, what is the company's cost of equity capital?
Explain how the spot and forward rates of the pound : Assume the following information: • British pound spot rate = $1.71 • British pound one-year forward rate = $1.69 • British one-year interest rate = 8% • U.S. one-year interest rate = 5% a. Explain how U.S. investors could use covered interest arbitr..
Paper about economic integration opportunity : We all agreed to use Scenario: Choose an existing U.S. based business the does not currently have international operations and expand it globally. These are the Topics that needs to be covered as Listed below: Economies of Scale, Tariffs/Subsidies/..
Net present value of a proposed capital budgeting : Let's also make sure that you are comfortable calculating the net present value of a proposed capital budgeting project when the cash inflows are uneven.Given the following information, calculate the NPV:
Describe how the storage molecule is broken down : Explain how energy is stored as fat, including identification of the storage molecule and tissue. Describe how the storage molecule is broken down and used to produce ATP.
Identify the demand conditions for the industry product : Factor Endowments (Heading): To clearly identify the Basic factors and advanced factors of your industry and country chosen. Demand Conditions (Heading): To clearly identify the demand conditions for the industry's product in your country.
Baryla inc manufactures high quality decorator lamps : Baryla Inc manufactures high quality decorator lamps in a plant located in Eastern Tennessee. Last year the firm had sales of $100 million and a gross profit margin of 40%. How much inventory can Baryla hold and still maintain an inventory turnover r..
Three-station production line with a single product : Consider the following three-station production line with a single product that must visit stations 1, 2, and 3 in sequence. its total production line time is 3 hrs 47 mins, bottle neck rate is 200, Wo is 9.333.

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the current stock price

One year from today, investors anticipate that stock will pay a dividend of 3.25 per share

  Lashi and hsipaw railways ltd is currently unleveredie it

lashi and hsipaw railways ltd is currently unleveredi.e. it has 100 equity and no debt. there are 1000000 shares on

  Answer the following four questions using apa 6th edition

answer the following four questions using apa 6th edition format.nbspanswer the questions in 350-500 words and include

  How much should be deposited now at 8 compounded semi

how much should be deposited now at 8 compounded semi annually to make a possible equal withdrawl of 5000 at the end

  What must be the price at which the bond was sold

You determine that the investor's annual rate of return for the year was 2.44%. What must be the price at which the bond was sold?

  Describe three of the main ways that the euro affects

Describe three of the main ways that the euro affects the members of the EMU.

  Describe pros and cons of using these tactics to implement

Describe the pros and cons of using these tactics to implement the price cut instead of simply cutting the wholesale price by the same amount.

  Calculate wacc

Chandeliers Corp. has no debt but can borrow at 7.4 percent.    Calculate WACC

  Are small jobs less profitable than they were in the past

Assume that the price charged for small jobs does not change in the current year. Are small jobs less profitable than they were in the past?

  What is the accounting break-even level for the project

Assume the equipment is depreciated on a straight-line basis over the project's life. What is the accounting break-even level for the project? What is the financial break-even level for the project?

  What will be the effect of the price

What will be the effect of the price increase on the firm's FCF for the year and chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20

  Watch the concept review video cost of capital video

watch the concept review video cost of capital video located in the wileyplus assignment week x videos activity.discuss

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