What is the projects net present value

Assignment Help Financial Management
Reference no: EM13767774

Empire Industries is considering adding a new product to their lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value if the firm wants to earn a 13 percent rate of return?

Year

0 -62,000

1 16.500

2 23,800

3 27,100

4 23,300

a. $3,505.52

b. $3,767.24

c. $4,312.65

d. $4,519.58

e. $4,902.71

Reference no: EM13767774

Questions Cloud

Environmental impacts of modern agricultural practice : Define Peak Oil. If the world reaches peak oil production what are possible ramifications?
Budgeting process for capital expenditures : Most organizations have a separate budgeting process for capital expenditures (the acquisition of equipment, copiers, computers, etc). Share with us what the capital budgeting process is for your organization.
Unit in fixed cost at a volume : A company has $7.50 per unit in variable cost at $4.70 per unit in fixed cost at a volume of 50,000 units. If the company marks up the cost by 0.52 what price should be charged if 61,000 units are expected to be sold?
Which prevention strategy do you personally believe : Which prevention strategy do you personally believe would be the most effective, and why? Which prevention strategy do you believe would be the least effective, and why
What is the projects net present value : Empire Industries is considering adding a new product to their lineup. This product is expected to generate sales for four years after which time the product will be discontinued. What is the project's net present value if the firm wants to earn a 13..
Address enivromental health issues about e-waste disposal : In particular , you discussed accontablility.As you noted the responsibility lies with the general public, manufacturing companies, and the government to address enivromental health issues such as E-waste disposal.What ideas do you have that would..
Economic growth for the typical firm : Using the Internet, library, or other resources, research and briefly explain 2-3 methods currently being used to encourage economic growth for the typical firm in Hong Kong and for the typical firm in Singapore.
Examine risk assessment methodology is quantitative : Examine whether your risk assessment methodology is quantitative, qualitative, or a combination of these, and discuss the main reasons why you believe that the methodology that you utilized was the most appropriate.
Write a paper that compare gaia hypothesis and avatar movie : Write a paper that compare gaia hypothesis and avatar movie.

Reviews

Write a Review

 

Financial Management Questions & Answers

  Best describes investment risk

Which of the following best describes investment risk?

  Borrowed for a home mortgage

If $120,000 is borrowed for a home mortgage, to be repaid at 9% interest over 30 years with monthly payments of $965.55, how much interest paid over the life of the loan?

  Currently the stock is selling

Currently the stock is selling for $38.25. A call to buy the stock at $40 is selling for $3.38 and a put to sell the stock at $35 is selling for 1.94. How could you use a collar to reduce your risk of loss from a decline in the price of the stock?

  1 fhc inc a us corporation has an account payable due in 90

1 fhc inc. a u.s. corporation has an account payable due in 90 days. use the following information to evaluate the

  Find the hedge ratio for put option using the data provided

Find the hedge ratio for a put option using the data provided. Use the hedge ratio to show the loss on a portfolio of 200 shares if the portofolio is hedged with put options. The percentage loss on the shares is 2%.

  What is the estimated value of the store

Considering investing in a store with a 10 year lease and it will be in business for the next 10 years. It produces annual cash flows of $400,000. Discount rate 10%. Cash flows will grow at 5%. Therefore, expected annual cash flow for next year is 42..

  Calculate the finance charge and monthly payment

Zachary Porter of Highland Heights, Kentucky, is contemplating borrowing $10,000 from his bank. The bank could use add-on rates of 6.5 percent for 3 years, 7 percent for 4 years, and 8 percent for 5 years. Use Equation 7.1 to calculate the finance ch..

  What is the current market price of the bonds

Silver Dart Lodge Inc. sold an issue of 25-year, $1,000 par value bonds to the public. The bonds has a 7.25% coupon rate and pays interest annually. The current market rate of interest on the Silver Dart Inc. bonds is 6.5%. What is the current market..

  Determine the number of units of product

Determine the number of units of product K to be manufactured in May and compute the May cash outlay for purchases of raw material A.

  Computed the weighted cost of capital

Macintosh computers can purchase a piece of equipment that is suspected to yield an 11% return in 10 be financed at 6% with debt. Later in the year the Company said no to the opportunity to purchase a newer machines that would yield a 9% return or co..

  What is return on equal weighted index of these three stocks

Assume there are only three stocks in the market: A, B, and C. At time 0, P(A) = $10, P(B) = $20, and P(C) = $10. At time 1, P(A) = $15, P(B) = $30, P(C) = $5. The number of shares outstanding is 1 million for A, 2 million for B, and 2 million for C...

  Teaching net present value and future value

You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value (FV) and how they are used to evaluate the price of stock. Describe the factors that are used in the NPV and ..

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