Reduced your salvage assumption

Assignment Help Financial Management
Reference no: EM131329663

You just finished a capital investment analysis on a $100 million project that has a 5-year life. The resulting NPV is $3 million using a 12% required return and a 35% marginal tax rate. You assumed a $10 million salvage value, $5 million above its adjusted tax basis. What would be the NPV if you reduced your salvage assumption by $2 million?

Reference no: EM131329663

Questions Cloud

Four lenses of innovation : Which of the four lenses of innovation do you see most frequently within your organization? Which do you see less frequently? Provide specific examples. How would this information help you in moving innovation forward within your organization?
Policy analysis methods to address policy issues : Public administrators rely on policy analysis methods to address policy issues at all level of government.  Specific methods are frequently used by administrators and analysts to develop sound policy decisions.
What is the maximum theoretical efficiency of this engine : What is the maximum theoretical efficiency of this engine? How much would the efficiency increase if the compression ratio could be increased to 15? Do you see a problem in doing so?
How can a companys cost of equity be determined : fin301- What are the advantages and disadvantages for AMSCto forgo their debt financing and take on equity financing? Do you agree with their decision? How can a company's cost of equity be determined?
Reduced your salvage assumption : You just finished a capital investment analysis on a $100 million project that has a 5-year life. The resulting NPV is $3 million using a 12% required return and a 35% marginal tax rate. You assumed a $10 million salvage value, $5 million above its a..
Company talent management efforts : How can an applicant tracking system improve a company's talent management efforts? Your response must be at least 200 words in length per question.
Common shares of almond beach : The common shares of Almond Beach Ltd., have a beta of 0.75, offer an expected return of 9%, and have an historical standard deviation of return of 17%, alternatively, the common shares of Palm Beach Inc. have a beta of 1.25, offer an expected return..
Characterize the set of all nash equilibria of the game : Characterize the set of all Nash equilibria of this game.- Which Nash equilibria are perfect?- Find a proper equilibrium of the game.
The maximum possible rate of interest is : Assume the index goes as follows: Yr.1=5.8% Yr.2=7% Yr.3=7% Yr.4=6% Yr.5= 9% Yr.6=12% Yr.7=5% Yr.8=14%. What is the rate charged in year2? What is the rate charged in year5? What is the rate charged in year8? The maximum possible rate of inter..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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