At what discount rate is the npv just equal to zero

Assignment Help Finance Basics
Reference no: EM13264860

An investment has an installed cost of $567,382. The cash flows over the four-year life of the investment are projected to be $196,584, $240,318, $188,674, and $156,313.
A. If the discount rate is zero, what is the NPV?
B. At what discount rate is the NPV just equal to zero?

Reference no: EM13264860

Questions Cloud

Compute the standard potential for this cell : A galvanic (voltaic) cell consists of an electrode composed of nickel in a 1.0 M nickel(II) ion solution and another electrode composed of copper in a 1.0 M copper(I) ion solution, connected by a salt bridge. Calculate the standard potential for t..
What is the increase in the temperature of the brakes : A 2000 kg car is traveling at a constant 15.0 m/s down a long mountain grade of 2.0%. The mountain road is 5.0 km long. What is the increase in the temperature of the brakes
What is the irr for each project : What is the IRR for each project?
Calculate the thd and dynamic range for each case : Calculate the THD and Dynamic range for each case assuming ideal digital to analog conversion: i. N = 30 converter bits ii. N = 60 converter bits iii. N = 90 converter bits
At what discount rate is the npv just equal to zero : An investment has an installed cost of $567,382. The cash flows over the four-year life of the investment are projected to be $196,584, $240,318, $188,674, and $156,313.
What are the types of wholesalers : What are the two types of wholesalers and the benefits that each afford and what connection do they have to the producer, and what advantages do the producers and wholesalers gain using these strategies?
What is the amplitude of given motion : A point rotates about the origin in the xy plane at a constant radius of 0.114 m and angular velocity of 7.40 rad/s. What is the amplitude of this motion
What is the operating cash flow in year six : The annual operating costs (before depreciation) will consist of fixed operating costs of $25,000 plus variable operating costs equal to 75% of sales.
Determine c1-c2-r1 and r2 of a low pass filter : Second order unity gain Tschebyscheff low pass filter. The task is to design a second order unity gain. Tschebyscheff low pass filter with a corner frequency of fc = 12.5kHz and a 3dB passband ripple. Determine C1, C2, R1, and R2.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate the projected net income

Goran Blomberg is interested in investing in a new rooms-only lodging property. He needs some financial projections for the proposed operations.

  What is the expected return on them

what is the expected return on them? Assume that interest compounds semiannually on similar coupon paying bonds.

  Compute of after-tax profit

Compute of after-tax profit and The corporate tax rate is 40%. If the economy is strong the firm will sell 2,000,000 gadgets

  Compute the incremental income after taxes

Johnson Electronics is planning extending trade credit to some customers previously considered poor risks. Sales would increase by $100,000 if credit is extended to these new customers.

  Free cash flow determination utilizing income statement

Free cash Flow determination utilizing income Statement and Balance sheets and Calculate EMC's value of operations

  What must the coupon rate be on these bonds

The bonds make semiannual payments. What must the coupon rate be on these bonds?

  Which one of the following occurred over the last year

Suppose you could buy 1,320 South Korean won or 78 Pakistani rupees last yer for $1. Today, $1 will buy you 1,318 won or 80 rupees. Which one of the following occurred over the last year?

  What is her portfolios beta

An individual has $30,000 invested in a stock with a beta of 0.7 and another $45,000 invested in a stock with a beta of 2.5. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal pla..

  Estimate degree of operating leverage

The Harmon Corporation manufactures skates. The company's income statement for 2004 is as follows:

  Which system resonates with you personally

Other cultures and legal systems absolutely refuse to allow a decendant, man or woman, to disinherit a child, minor or adult. Which system resonates with you personally?

  Simply respond to market signals of weakness

The emerging market crisis of 1997 to 2002 were worsened because of rampant speculation. Do speculators cause such crisis or do they simply respond to market signals of weakness?

  What specific product characteristics for each influenced

How price sensitive does this product appear to be, based on your conjoint analysis? What specific price/market information lead you to this conclusion. Be specific.

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