Annual cash flows-indifferent in accepting project-rejecting

Assignment Help Financial Management
Reference no: EM13728497

A project that provides annual cash flows of $12,300 for 9 years costs $70,836 today. If the required return is 3 percent, the NPV for the project is $ _________ and you would accept the project. At a discount rate of _________ percent, you would be indifferent between accepting the project and rejecting it. (Do not include the dollar & percent signs ($ & %). Negative amount should be indicated by a minus sign. Round your answers to 2 decimal places (e.g., 32.16))

Reference no: EM13728497

Questions Cloud

The prairie dog has always been considered a problem : The prairie dog has always been considered a problem for American cattle ranchers. They dig holes that cattle andhorses can step in, and they eat grass necessary for cattle. Recently, ranchers have discovered that there is a demandfor prairie dogs as..
What is his or her occupation : Describe who this person is demographically and their core values. What is his or her occupation? What unmet needs is the company fulfilling? Do you think it worked
Firm evaluates all of projects by using npv decision rule : A firm evaluates all of its projects by using the NPV decision rule. At a required return of 12 percent, the NPV for the following project is $ ________ and the firm should accept the project. At a required return of 31 percent, the NPV is $ ________..
Organizational effectiveness in organizational structures : A moderator is a qualitative (e.g., sex, race, class) or quantitative (e.g., level of reward) variable that effects the direction and/or strength of the relation between an independent...variable and a dependent...variable" to acquire Organization..
Annual cash flows-indifferent in accepting project-rejecting : A project that provides annual cash flows of $12,300 for 9 years costs $70,836 today. If the required return is 3 percent, the NPV for the project is $ _________ and you would accept the project. At a discount rate of _________ percent, you would be ..
What general pricing approaches have airlines pursued : What general pricing approaches have airlines pursued, How do the nature of the airline market and the demand for airline service affect Southwest's decisions
Calculate the economic life in mscf per month : Calculate the Economic Life in Mscf per month for a gas lease with WI = 100%, NRI = 87.5%, condensate price = $15/STB, gas price = $2.25/Mscf, condensate yield = 5 STB/Mscf, gas and severance tax (each) = 4.5%. Assuming that ad valorem tax is negligi..
Innovation process presentation : Use the same Virtual Organization (Kudler Fine Foods) you selected in the previous assignments. Identify and discuss the four basic phases of the Phased Project Planning process. (4slides only)
Explain radical or jacobin phase of the french revolution : Explain in detail the radical or Jacobin phase of the French Revolution, focusing on why it happened, how the Jacobins tried to implement their plan and whether or not their goals were ultimately achieved.

Reviews

Write a Review

Financial Management Questions & Answers

  Explain van buren common stock

On the basis of your answers to Problems 21-1 and 21-2, if Harrison were to acquire Van Buren what would be the range of possible prices it could bid for each share of Van Buren common stock?

  Understand cumulative voting and plans to cast

Mr. Michaels controls proxies for 40,000 of the 75,000 outstanding shares of Northern Airlines. Mr. Baker heads a dissident group that controls the remaining 35,000 shares. There are seven board members to be elected and cumulative voting rules apply..

  Choosing a streaming media service

Instead of immediately committing to one choice, you can take each service for a "test drive" to see which one you prefer - Price makes a big difference when it comes to choosing a streaming media service. Fortunately, all of the services are priced..

  Calculate the operating cash flows

(Calculating operating cash flows) assume that a new project will annually generate revenues of $ 2,600,000. Cash expenses including both fixed and variable costs will be $ 500,000, and depreciation will increase by $ 180,000 per year. In addition, l..

  Account before making the offsetting transaction

Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you did not remove any money..

  What is the amount of the collection float as of the end

As of this morning, your firm had a ledger balance of $775 with no outstanding deposits or checks. Today, your firm deposited six checks in the amount of $79 each and wrote a check in the amount of $330. What is the amount of the collection float as ..

  What is the yield maintenance penalty

Twenty year self liquidating mortgage with five years remaining on the term. Interest rate is 8% and current five year treasury is 1.59%. What is the yield maintenance penalty? What if there were 10 years remaining and the treasury was 2.75%. What if..

  What is the amount of bid using options contract

What is the amount of bid using Borrowing and Lending, what is the amount of bid using Forward contract and what is the amount of bid using Options contract?

  How is beta affected by mergers in the airline industry

How is beta affected by mergers in the airline industry? For example, is the beta of merged American Airlines/U.S. Airways higher, lower, or unchanged from their betas as stand-alone companies? Prior to their merger in December 2013, the beta of Amer..

  Calculate a value in response

Calculate a value in response to the following: Believing that an estimated increase in sales is overly optimistic, a company director is requesting data predicting annual profit if the selling price calculated above is adopted but the change in s..

  Liquidity ratios edison stagg and thornton have the

liquidity ratios. edison stagg and thornton have the following financial information at the close of business on july

  Write a summary of the article by reuven glick

Write a summary of the Article by Reuven Glick and Andrew K. Rose. - CONTAGION AND TRADE: WHY ARE CURRENCY CRISES REGIONAL?

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