Appropriate interest rate

Assignment Help Financial Management
Reference no: EM13847194

If the appropriate interest rate is 10%, then the NPV of this opportunity is closest to:

a. $300,000

b. ($88,000)

c. $88,000

d. $1,300,000

Reference no: EM13847194

Questions Cloud

Timeline detailing stream of cash flows : Consider the following timeline detailing a stream of cash flows: If the current market rate of interest is 8%, then the present value of this stream             of cash flows is closest to:
The amount of money that would be in the account : The amount of money that would be in the account if you left the money there until your 65th birthday is closest to:
Dealership offers-special financing rate : You are interested in purchasing a new automobile that costs $35,000. The dealership offers you a special financing rate of 6% APR (0.5%) per month for 48 months. Assuming that you do not make a down payment on the auto and you take the dealer's fina..
Write a one-paragraph summary of given article : Read the article- "Syria's crisis looms over UN gathering of world leaders"  (http://www.sltrib.com/news/3000313-155/syrias-crisis-looms-over-un-gathering). Write a one-paragraph summary, and in another paragraph explain how this is relevant to you
Appropriate interest rate : If the appropriate interest rate is 10%, then the NPV of this opportunity is closest to:
Considering an opportunity that requires an investment : Nielson Motors is considering an opportunity that requires an investment of $1,000, 000 today and will provide $250,000 one year from now, $450,000 two years from now, and $650,000 three years from now.
Considering selling his restaurant and retiring : The owner of the Krusty Krab is considering selling his restaurant and retiring. An investor has offered to buy the Krusty Krab for $350,000 whenever the owner is ready for retirement. Sell the restaurant now and retire.
Inventory turnover ratio-balance sheet-sales information : Complete the balance sheet and sales information using the following financial data: totals assets turnover: 1.5x days sales outstanding: 41 days inventory turnover ratio: 7x fixed asset turnover:3.5x current ratio:1.7x gross profit margin on sales=2..
Essay - hills like white elephants : "Hills like white elephants" by earnest Hemingway is the story. Essay should be 650-750 words, and should include intro , thesis, and so on

Reviews

Write a Review

Financial Management Questions & Answers

  What annual rate of return is earned

What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?

  Long-term debt and equity financing

Miletkov company's total assets fluctuate between $320000 and $410000, while its fixed assets remain constant at 260000. If the firm follows a maturity matching, or moderate, working capital financing policy, what is the likely level of its long-term..

  Common stock-risk-free rate and market return

King Farm Manufacturing Company’s common stock has a beta of 0.61. If the risk-free rate is 3.44%, and the market return is 5.95 %, calculate the required return on King Farm Manufacturing Company’s stock.

  Between annual sales of bobcat industries

Between December 31, 2016 and December 31, 2017, annual sales of Bobcat Industries went from $32,000,000 to $48,000,000. EBIT went from $3,000,000 to $4,600,000. Net income went from $1,500,000 to $2,200,000. Management has asked you to comment

  What is the firms cost of common equity

A firm is determining its cost of common stock equity. It last paid a dividend of $.52, the dividends are growing at 5%, flotation costs are $2 per share and the firm will net $72 per share upon the sale of the stock. What is the firm’s cost of commo..

  Determinant of an investments portfolio risk

The most important determinant of an investment's portfolio risk is which of the following? If a bank pays quarterly compounding on its savings accounts, the ending amount after one year on a $1,000 deposit will be less than if the bank paid annual c..

  State main difference in opinion of the house and the senate

Listen or review the slides on Health Insurance Exchanges. In general, what is the main difference in opinion of the House and the Senate? Whose viewpoint do you agree with? How do these viewpoints impact financial challenges facing health care le..

  What are divas projected profits for the fiscal year ending

what are divas projected profits for the fiscal year ending september 1995?what factors affect a firms exposure to

  Find the interest rates earned

Find the interest rates earned on each of the following-You borrow $650 and promise to pay back $689 at the end of 1 year. You borrow $92,000 and promise to pay back $321,858 at the end of 12 years.

  Suppose youve just been assigned to project risk team of

assume you have just been assigned to a project risk team of five members. because this is the first time your

  Comparable investments and settle the transaction

The Snatch Company has outstanding bonds with a coupon rate of 7.75% and semi-annual payments. The bonds are redeemable on June 30, 2035. If Bobby can earn 5.5% on comparable investments and settle the transaction on August 9, 2015, how much should h..

  Include the pepsi-cola bottling group in the portfolio

Perform some research on the web, and outline the evolution of PepsiCo from 1970 forward. How has their portfolio changed over the years (include the Pepsi-Cola Bottling Group in the portfolio)?

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