Customer Service Chat
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..
Mortgages, A mortgage may be defined as a pledge of property ...
A mortgage may be defined as a pledge of property to secure a debt payment; in this context, we will use the term property to mean real estate. If the
Define leveraged buyout, What is an LBO? What are the risks for the equity...
What is an LBO? What are the risks for the equity investors and what are the potential rewards? A term leveraged buyout is a purchase of a publicly owned corporation through a s
Accounting framework, Accounting Framework The rules and conventions o...
Accounting Framework The rules and conventions of accounting are generally referred to as the conceptual framework of accounting. As already elaborates in the previous sectio
Financial Management, Financial Management Initial Disclosures During the ...
Financial Management Initial Disclosures During the process of discussion and negotiation with the client with regard to the financial affairs and the manner of operations of the
Primary market, Problems in primary market?
Problems in primary market?
Discounting the expected cash flows in valuation process, After deter...
After determining the expected cash flows and appropriate interest rate, the last step in the valuation process is to find the total PV of all cash flows. The PV
Challenges facing by the finance manager, FUNCTIONS / RESPONSIBILITIES / CH...
FUNCTIONS / RESPONSIBILITIES / CHALLENGES FACING THE FINANCE MANAGER Today's finance manager is facing a lot of challenges, which are the direct result of the dynamic growth in
Savage friedman, Question: (a) Describe the axioms of utility. (b) An eco...
Question: (a) Describe the axioms of utility. (b) An economic agent has a logarithmic utility function, U(W) = lnw and has initial wealth $20,000. She is offered the subsequent g
Cost of equity share capital, Q. Cost of Equity Share Capital? Cost of ...
Q. Cost of Equity Share Capital? Cost of Equity Share Capital: - The cost of equity is the utmost rate of return that the company should earn on equity financed position of its
Walter model, What is Walter Model? Please provide me report on Estimation ...
What is Walter Model? Please provide me report on Estimation of Walter Model. It is about 2000 words count report on topic Walter Model.
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
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.