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

Evaluate break-even production units, Q. Evaluate Break-Even Production uni... Q. Evaluate Break-Even Production units? R.S. Manufacturing Ltd. Budgets production of 3,00,000 units at cost of Rs.10 each. The Fixed costs are Rs.20, 00,000. The selling pric

Assertion, Assertion -Implicit or explicit representations by an entity's m... Assertion -Implicit or explicit representations by an entity's management which are embodied infinancial statement components and for which AUDITOR obtains and evaluates evidential

Artificial intelligence and neural networks, examine the resemblance betwee... examine the resemblance between Artificial intelligence and neural networks

Discounted present value, A player for a Rice team, Jim Jones, is graduatin... A player for a Rice team, Jim Jones, is graduating this year and is considering a career in professional sports. The alternative is to work for two years and then attend business s

What type of an asset is goodwill, What kinds of risks does a firm like Ama... What kinds of risks does a firm like Amazon.com face with respect to safeguarding its assets? What types of controls do you think it already has in place to minimize these risks? G

Explain depreciate non-current assets, Question: Lucy Kim is in the car... Question: Lucy Kim is in the car hire business. The following information came from her Fixed Asset Register on 31 December 2009: On 31 March 2009, she sold the car wh

maximize profit, Natural Furniture Company manufactures three outdoor prod... Natural Furniture Company manufactures three outdoor products, benches, chairs, and tables. Every product must pass by the following departments before it is shipped: sanding, sawi

Financial accounting, Financial Accounting An accounting technique that... Financial Accounting An accounting technique that records, interprets, and reports the historical cost transaction of an organization. An organization records these transaction

Required: prepare journal entries for the above transactions, Sleek Ride, a... Sleek Ride, a company providing limo services, has a December 31 year-end date. For Sleek Ride, the following transactions occurred during the ?rst 10 days of June: a. Purchased, o

Continuous compounding, The excessive frequency of compounding is generally... The excessive frequency of compounding is generally continuous compounding where the interest is compounded immediately. The data for continuous compounding for one year is e APR