Get quote & make Payment
Find NPV of 2 Projects, Financial Management
Woody Construction is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.186 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $247,800. The project requires an initial investment in net working capital of $354,000. The project is estimated to generate $2,832,000 in annual sales, with costs of $1,132,800. The tax rate is 31 percent and the required return on the project is 10 percent. What is the NPV for this project?
2. Hot Meats is looking at a new sausage system with an installed cost of $436,800. This cost will be depreciated straight-line to zero over the project''s 5-year life, at the end of which the sausage system can be scrapped for $67,200. The sausage system will save the firm $134,400 per year in pretax operating costs, and the system requires an initial investment in net working capital of $31,360. If the tax rate is 31 percent and the discount rate is 9 percent, what is the NPV of the project?
Posted Date: 11/7/2012 7:49:30 PM | Location : United States
Ask an Expert
Find NPV of 2 Projects, Assignment Help, Ask Question on Find NPV of 2 Projects, Get Answer, Expert's Help, Find NPV of 2 Projects Discussions
Write discussion on Find NPV of 2 Projects
Your posts are moderated
Write your message here..
calculate the value of the bond, a.) A bond of Rs. 1000 value carries a co...
a.) A bond of Rs. 1000 value carries a coupon rate of 10% and has a maturity period of 6 years. Interest is payable semi-annually. If the required rate of return is 12%, calculate
Advantages and disadvantages of aggressive working capital, What are the ad...
What are the advantages and disadvantages of the aggressive working capital financing approach? An belligerent working capital financing approach typically results in a lower c
Treasury bills or t-bills, Treasury bills are the bills, the governme...
Treasury bills are the bills, the government issues with maturity period of one year or less than one year. Treasury bills are usually issued as discount securiti
Strong form level of efficiency, Strong form level of Efficiency This l...
Strong form level of Efficiency This level states that price reflects all the available public and private information (past, present and future information). If the hypothesis
Factors determining dividend policy, Q. Factors Determining Dividend Policy...
Q. Factors Determining Dividend Policy? (1) Financial Needs of the Firm: - Financial requirement of a firm are directly related to the investment opportunities available to it.
What is a security?, What is a security? The Securities are claims on f...
What is a security? The Securities are claims on financial assets. They can be explained as "claim checks" that give their owners the right to obtain funds in the future. Sec
Regulation of mergers and acquisitions, Regulation of Mergers and acquisiti...
Regulation of Mergers and acquisitions Mergers and acquisitions are regulated by: Competition commission If office of fair trading thinks that merg
Time value of money, In order to provide for R10 million to build a new war...
In order to provide for R10 million to build a new warehouse in 5 years time, a company plans to make equal payments at the end of each six months into a fund which earns 9% per ye
Explain hedging transaction exposure, Discuss and compare hedging transacti...
Discuss and compare hedging transaction exposure by using the forward contract vs. money market instruments. While do the alternative hedging approaches generate similar result?
Explain term lenders, Lenders Lenders are concerned to receive payment ...
Lenders Lenders are concerned to receive payment of interest and ultimate re-payment of capital. They don't share in the upside of very successful organisational strategies as
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
IT Courses and Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.