User Account

All Pages

What is the new npv

Assignment Help Finance Basics
Reference no: EM132200033

PhotoExpress, is considering a new three-year expansion project that requires an initial fixed asset investment of $4.2 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $3,100,000 in annual sales, with costs of $990,000. The tax rate is 35 percent.

First, determine the operating cash flow.

Second, if the required return is 12% on the project, what is the projects NPV?

Third, suppose the project requires an initial investment in net working capital of $300,000, and the fixed asset will have a market value of $210,000 at the end of the project. What is the project's year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV?

Reference no: EM132200033

Questions Cloud

Outline the kind of approach you believe human resource : Outline the kind of approach you believe human resource director Andy Miller should be advising the employment manager to follow.
Bigmas weighted average cost of capital : If the company's marginal tax rate is 40 percent, what is BigMa's weighted average cost of capital?
Specify the output that you will get when you run program : In the main method and after calling the function, print the variable num. Specify the output that you will get when you run the program.
Publicly-traded competitor : An analyst gathered the following information about a private company and its publicly-traded competitor:
What is the new npv : What is the project's year 0 net cash flow? Year 1? Year 2? Year 3? What is the new NPV?
Write a function that takes as input a natural number : Write a function that takes as input a natural number, n, and that returns the square of its input by adding the first n odd numbers.
What is the terminal cash flow for equipment : Given that the firm's marginal corporate tax rate is 40%, what is the terminal cash flow for this equipment?
Write a function in matlab that takes as input the number : Write a function in Matlab that takes as input the number n and a symmetric tridiagonal matrix given as two vectors: n×1 vector v representing.
Project expected npv and standard deviation of npv : Should the base case analysis use the most likely NPV or expected NPV? Explain your answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  What happened to hedge funds

What happened to hedge funds during the 2008 Global Financial Crisis?

  Set up three segment money book of mrs.eswari

set up three segment money book of Mrs.Eswari from the accompanying exchanges and equalization the money book on 30th June 2003

  Molecule of metabolic water from a cell

Trace a molecule of metabolic water from a cell of the right gastrocnemius to excretion. This should include the loop it would take in the plasma

  What is the 2009 operating cash flow\

Jetson Spacecraft Corp. shows the following information on its 2009 income statement: sales = $209,000; costs = $103,000; other expenses = $5,700; depreciation expense = $9,000; interest expense = $14,200.

  Native american and multiracial

In what ways does Hispanic ethnicity overlap racial categories like White, Black, Native American and multiracial?

  The bigbee bottling company is contemplating the

the bigbee bottling company is contemplating the replacement of one of its bottling machines with a newer and more

  Estimate the expected growth rate

Caballos, Inc., has a debt to capital ratio of 24%, a beta of 1.5 and a pre-tax cost of debt of 6%. The firm had earnings before interest and taxes.

  Compute the probabilities using standard normal distribution

1. Z is a standard normal random variable. Compute the following probabilities using standard normal distribution. You can find the table in Appendix section.

  Calculate a budgeting system at any governmental level

Evaluate a budgeting system at any governmental level. Analyze the scope and sequence of budgeting in terms of sources of revenues, purpose of government expenditures, budget preparation, and debt administration.

  Rough estimate for international infrastructural project

Prepare a capital appraisal for an international infrastructural project with suitable roughly estimated cash flows designed to illustrate these complexities.

  Financing and investment decisions

Because of differing market imperfections, financing decisions (related to the right side of balance sheet) are less easily reversed than investment decisions (related to left side of balance sheet). Check whether true or false.

  Term is used in the service efforts and accomplishments

term is used in the service efforts and accomplishments

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

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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