User Account

All Pages

What is the project npv

Assignment Help Finance Basics
Reference no: EM131201920

A project has an initial requirement of $234,703 for new equipment and $12,219 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated salvage value of $108,009. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $68,463 and the cost of capital is 6% What is the project's NPV if the tax rate is 38%?

Reference no: EM131201920

Questions Cloud

Determine the average investment in accounts receivable : Assume net sales of $1,200,000 and cost of goods sold of $900,000. Determine the average investment in accounts receivable, inventories, and accounts payable. What would be the net financing need considering only these three accounts?
Why every allocation is pareto efficient : The peanuts are the only thing to eat. In this economy with two people, one commodity and no production represent that possible allocations in a diagram, and explain why every allocation is Pareto efficient. Is every allocation fair?
Components in the aim planning process : Describe each of the three components in the AIM planning process for business messages: audience analysis, idea development, and message structuring.
Does a market-based economic system need to be monitored : Currently Australian consumers are paying off their debts and not spending. Using the simple Keynesian model to assess the implications for equilibrium GDP and the level of savings of an increase in the savings function.Conversely what would happe..
What is the project npv : All of the net working capital will be recouped at the end of the project. The annual operating cash flow is $68,463 and the cost of capital is 6% What is the project's NPV if the tax rate is 38%?
Estimate the total uncertainty in prediction : Estimate the total uncertainty in prediction by accounting for both the aleatory and epistemic uncertainties assuming normal probability distributions. Briefly discuss your results.
Demonstrating the health benefits of cocoa : What happens to the price and the quantity bought and sold in the cocoa market if countries producing cocoa experience a drought and a new study is released demonstrating the health benefits of cocoa? Illustrate your answer with a demand and suppl..
What amount should sherry declare in dividends : What amount should Sherry declare in dividends for 20x4? Identify what factors influenced your decision and how they helped you in determining the dividend amount.
Calculate the new equilibrium interest rate and quantity : Calculate the new equilibrium interest rate and quantity, and explain why the direction of the interest rate shift makes intuitive sense.

Reviews

Write a Review

Finance Basics Questions & Answers

  Capital budgeting and capital structure

Discuss two (2) pros and two (2) cons of a business applying different capital budgeting techniques when it is faced with making wealth-maximizing decisions around investing corporate funds.

  Assignment on to build or buy

Select a small business that you visit often (e.g., coffee shop, bookstore, sporting goods store, etc.). Write a 6-8 page paper in which you:

  What does it mean for a tax code to be convex

What does it mean for a tax code to be convex? If a country's corporate tax rate is flat, does it make sense for a firm to hedge?

  Named as mortgagee under the mortgage clause

Craig owns a home with a replacement cost of $200,000 that is subject to a $100,000 mortgage held by First Federal as the mortgagee. Craig has the home insured for $160,000 under the HO-3 policy, and First Federal is named as mortgagee under the M..

  The user of leverage might be thought of as taking

the user of leverage might be thought of as taking advantage of the provider. between stockholders and bondholders

  What is the firms income tax liability

What is the firm's income tax liability and its after-tax income and what are the firm's marginal and average tax rates on taxable income?

  The black-scholes model and the binomial model are based on

the black-scholes model and the binomial model are based on similar assumptions however there are some important

  How would you interpret this statement

When South Korea’s export growth stalled, some South Korean firms suggested that South Korea’s primary export problem was the weakness in the Japanese yen. How would you interpret this statement?

  Case study sick leave by laura turek

The question is from Human Resources as well as it explains about the case study Sick Leave by Laura Turek.

  Discount window lending during credit crisis- explain how

1. the fed- briefly describe the origin of the federal reserve system. describe the functions of the fed district

  Compute additional funds needed

The corporation's fixed assets were used to only 50% of capacity during 2005, but its current assets were at their proper levels. All assets except fixed assets rise at the same rate as sales,

  Estimating the confidence interval

Please explain the Central Limit Theorem and then the importance of it to your research. What is the key difference when to use a Z or a T Distribution when you are estimating the confidence interval?

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