Red Lake Mines, Inc. is considering adoption of a new project requiring a net investment of $10 million. The project is expected to generate 5 years of net cash inflows of $5 million per year. In the project's sixth, and final, year it is expected to have a net cash outflow of $1 million. What is the project's net present value, using a discount rate of 12 percent?

Posted Date: 3/28/2013 2:58:07 AM | Location : United States

Ask an Expert

Related Discussions:- What is the net present value of project, Assignment Help, Ask Question on What is the net present value of project, Get Answer, Expert's Help, What is the net present value of project Discussions

Write discussion on What is the net present value of project
Your posts are moderated

Write your message here..

Related Questions

Bond Amortization, How do you show bond amortization on a spreadsheet and t... How do you show bond amortization on a spreadsheet and then in journal entries and compute interest payments?

Seller-buyer-seller’s bank and buyer’s bank, I am facing some problems in ... I am facing some problems in my assignment of Seller, Buyer, Seller’s Bank, and Buyer’s Bank. Can anybody suggest me the proper explanation for it? a. Draw the diagram of the tr

Presentation and hearing-the petition, Presentation and hearing The pet... Presentation and hearing The petition is presented to the court and must be served on the debtor at least eight days before the hearing. If the debtor wishes to oppose it he mu

Financial management, Discuss the applicability of the operating cycle in p... Discuss the applicability of the operating cycle in poultry (consider broilers)

Differences between estates and trusts-executorship laws, Differences betwe... Differences between estates and trusts Note particularly the following differences between estates and trusts:— 1. Estate: on the death of a testator or an intestate, all

Horizontial and Vertical Analysis, #qUsing these data from the comparative ... #qUsing these data from the comparative balance sheet of Junior Company, perform horizontal analysis. JUNIOR COMPANY

What is materiality, Q. What is Materiality? Materiality - Magnitude of... Q. What is Materiality? Materiality - Magnitude of an omission or misstatements of ACCOUNTING information that, in the light of surrounding circumstances, makes it probable tha

What is net worth create balance sheet, Gary and Joyce Yau, both 30, last m... Gary and Joyce Yau, both 30, last month bought their dream house in London, Ontario. The purchase price was $450,000 plus addition fees such as taxes, legal fees, administration fe

Service revenue earned on account, what type of transaction is a service re... what type of transaction is a service revenue earned on account? a) asset source, b) asset use, c) asset exchange or d) claims exchange?

State the users of accounting information, State the users of accounting in... State the users of accounting information Environment has brought new challenges for managers and other users of accounting information. Their requirements have changed and bot