What is the project net investment outlay

Assignment Help Other Subject
Reference no: EM132195857

Question - Financial health care

You are considering purchasing a new database system for your company. The system will cost $80,000, and it will cost another $15,000 for equipment and training. The system is expected to be sold after three years, when you plan to outsource database activities. You hope that you can sell your system to a competitor for $12,000. You expect to save $22,000 per year in operating costs. Your corporate cost of capital is 10%.

a. What is the project's net investment outlay at Year 0?

b. What are the projects' operating cash flows in Years 1, 2, and 3?

c. What is the terminal cash flow at the end of Year 3?

d. If the project has average risk, is it expected to be profitable? On what basis did you draw this conclusion?

Reference no: EM132195857

Questions Cloud

Commonly used by broad cost leadership strategy : Besides charging below average prices to customers, select which group of characteristics would be most commonly used by a broad cost leadership strategy.
Readylite company produces flashlight : The Readylite Company produces a flashlight in which product managers are trying to decide how long a warranty to issue.
What privacy and security concerns exist in using pe tools : What privacy and security concerns exist in using PE tools? What are your privacy and security concerns with this tool?
Production or purchasing is made in predetermined batches : When production or purchasing is made in predetermined batches or lots
What is the project net investment outlay : You are considering purchasing a new database system for your company. What is the project's net investment outlay at Year 0
Person with a positive test result has the cancer : Determine the probability that a person with a positive test result has the cancer.
How much redaction is necessary to anonymize : Discuss in 500 words, how much redaction is necessary to anonymize an electronic health record. Is it enough to redact the name? The name and address?
How well the regression line fits : The regression line is the line that best fits the x-y data. The correlation, on the other hand, tells you how well the regression line fits the data.
Write short program that uses for loop to populate an array : Write a short program that uses a for loop to populate an array. The array can store up to 10 integers entered by the user.

Reviews

Write a Review

 

Other Subject Questions & Answers

  What is the positive predictive value of the test

The faculty and staff at Dana-Farber Cancer Institute in Boston are required to undergo a tuberculosis test each year. Use the following table to answer each question.

  You must provide academic or real-life criminal justice

crime and justice are subjects that are frequently presented on television. prime-time television shows soap operas

  What steps should the governments take

In mid-1999, the unemployment rate was 10.5% in Germany, 11.3% in France, and 12.1% in Italy. What steps should those governments take to bring.

  How does company deliver communications to its audience

assume you are an internet strategist for the company you selected in week one. evaluate the companys current use of

  Nordstrom: performance goals issues

Nordstrom creates an open atmosphere, in which every associate's sales figures are made available to everyone else. Explain the positive impacts.

  Spirituality in health care

Summarize Acts 3 and 4 in the Bible, and discuss the components of healing that took place. What led to believing that healing took place?

  Was he suffering from heat stroke or heat exhaustion?

After chopping wood for about 2 hours on a hot but breezy afternoon, john stumbled into the house and then fainted. His T-shirt was wringing wet with perspiration, and his pulse was faint and rapid. Was he suffering from heat stroke or heat exhaustio..

  Social psychological research

Based on social psychological research, particularly concerning the dual-process approach, what should you advise them to do?

  Checkpoint alternative funding

CheckPoint Alternative Funding

  Why do you believe your experience has been positive

Share your experiences with healthcare information systems, past or present. Has it been an easy transition or difficult? Why do you believe your experience.

  Family considered the most important agent of socialization

Why is the family considered the most important agent of socialization? What caused the dramatic changes to the American family? What are those changes?

  Conflict between a state constitution and a federal law

If there were a conflict between a state's constitution and a federal law enacted by the U.S. Congress, should the federal law always take precedence?

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