A project has the cash flows

Assignment Help Financial Management
Reference no: EM13882224

A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 percent? (Negative amount should be indicated by a minus sign. Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $ What is the NPV of the project if the required return is 0 percent? (Negative amount should be indicated by a minus sign.) NPV $ What is the NPV of the project if the required return is 20 percent? (Do not round intermediate answers and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $

Reference no: EM13882224

Questions Cloud

What type of bankruptcy agreement would you recommend? : What type of bankruptcy agreement would you recommend? Why? In your answer be sure to compare at least two types of bankruptcy and the pros and cons of each.
Essay - platos theory of forms option : Essay topics- choose from among these topics for an essay. Option A: Plato's Theory of Forms Option. Option B: Aristotle's Conception of Ethics. Option C: If you have a special interest in a particular topic, discuss it with me, it should be ok. Addr..
Estimate the cost of common stock capital : The security market line indicates that a 5% premium above the risk-free rate is desirable. If U.S. Treasury bills are paying 2%, estimate the cost of common stock capital.
What are the benefits and drawbacks of equity and of debt : What are the benefits and drawbacks of equity and of debt financing?
A project has the cash flows : A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 perce..
What general conclusions can you draw : Use the horizontal axis for years and the vertical axis for SAT scores to plot the verbal and math scores for males and females separately and What general conclusions can you draw?
Paid dividend-what is the price of the stock : Thirsty Cactus Corp. just paid a dividend of $2.40 per share. The dividends are expected to grow at 16 percent for the next eight years and then level off to a growth rate of 6 percent indefinitely. If the required return is 15 percent, what is the p..
How are the interest rate and cost of debt capital used : What is the after-tax cost of debt capital if the effective tax rate is 42%? (b) How are the interest rate and cost of debt capital used to calculate WACC?
Can lesotho afford an independent monetary policy : Can Lesotho afford an independent monetary policy?

Reviews

Write a Review

Financial Management Questions & Answers

  Level outlay under amortization method with interest rate

Show that the borrower’s periodic outlay for a standard sinking fund method repayment at rate j is larger than the level outlay under amortization method with the interest rate i, if i > j.

  What is the y-intercept of your company

What percent of variation in returns is explained by the market index? What is the y-intercept of your company? What does it mean? Is it significantly greater than zero? Does CAPM appear to explain the returns of your company very well?

  What is the portfolios beta

Bill Dukes has $100,000 invested in a 2-stock portfolio. $35,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta?

  In addition to comparison with industry ratios

In addition to comparison with industry ratios, it is also helpful to analyze ratios using

  What is the operating cash flow

Your firm has net income of $259 on total sales of $1,100. Costs are $620 and depreciation is $110. The tax rate is 30 percent. The firm does not have interest expenses. What is the operating cash flow?

  Required return on an index fund

Bradford Manufacturing Company has a beta of 1.2, while Farley Industries has a beta of 0.3. The required return on an index fund that holds the entire stock market is 11.5%. The risk-free rate of interest is 6.75%. By how much does Bradford's requir..

  Stephen plans to purchase a car

Stephen plans to purchase a car 7 years from now. The car will cost $67,989 at that time. Assume that Stephen can earn 7.37 percent (compounded monthly) on his money. How much should he set aside today for the purchase?

  Possible reasons for this increase in the collection period

You are the CEO of a company that has hired a new sales manager in the last year. The company’s sales have increased by 60 percent during that time; however, the company’s average collection period has increase from twelve days to thirty-five days. I..

  What is the firms debt-equity ratio

Central Systems, Inc. has a weighted average cost of capital of 8 percent. The firm has an after-tax cost of debt of 4 percent and a cost of equity of 12 percent. What is the firm's debt-equity ratio?

  What is the initial outlay associated with this project

You are considering expanding your product line that currently consists of skateboards to include gas-powered skateboards, and you feel you can sell 8,000 of these per year for 10 years (after which time this project is expected to shut down with sol..

  What is the best estimate for the firms value of equity

Based on the corporate valuation model, Lee Inc.'s total corporate value is $750 million. Its balance sheet shows $100 million notes payable, $200 million of long-term debt, $40 million of common stock (par plus paid-in-capital), and $160 million of ..

  While not a ratings record for the game

The 2012 NCAA Men's final game between Kentucky and Kansas came in at 10.8 / 18.4 . While not a ratings record for the game, industry experts considered it a success. Assume that there are 114 million American households with televisions.

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