Available project that will require an immediate outflow

Assignment Help Financial Management
Reference no: EM131056473

A new startup, Mensa, has developed their best available project that will require an immediate outflow (an investment today) of $48855. The project's long-term cash flows are expected to be $22150 per year for 4 consecutive years beginning in one year. If the required rate of return is 9.50%, calculate the project's NPV

Reference no: EM131056473

Questions Cloud

Check whether oldfd is valid : In this case, you should check whether oldfd is valid, which can be done by, for example, checking if fcntl(oldfd, F_GETFL) succeeds. If oldfd is not valid, then the function should return -1 with errno set to EBADF.
Economic concepts from previous modules : The government often has two conflicting roles. It protects consumers by keeping prices fair and promotes a free market (entry of firms). Suppose your firm has a special patent. Do you think patent licenses should expire? Be sure to support your a..
Project has an initial fixed asset investment : A 9-year project has an initial fixed asset investment of $39,060, an initial NWC investment of $3,720, and an annual OCF of -$59,520. The fixed asset is fully depreciated over the life of the project and has no salvage value. Required: If the requir..
What are modern day challenges for military psychiatrists : Or in other words: please contemplate whether military psychiatrists from WWI, WWII and the Vietnam War faced similar or different issues and challenges. Then, please compare those issues and challenges to modern day issues and challenges of milit..
Available project that will require an immediate outflow : A new startup, Mensa, has developed their best available project that will require an immediate outflow (an investment today) of $48855. The project's long-term cash flows are expected to be $22150 per year for 4 consecutive years beginning in one ye..
Firm is considering an unusual project of the selling : A firm is considering an unusual project of the selling of a machine today that will result in an immediate inflow of $530. Without the use of the machine the firm will incur an annuity of outflows of $73 per year that begin at the end of year one, a..
Simple macroeconomic model of an economy : A simple macroeconomic model of an economy is estimated at end of 2009  giving the following information:
Write a time-stamped string to a second file : The timestamp should be recorded in text form as the number of milliseconds since the start of the script session. Recording the timestamp in text form has the advantage that the resulting file is human-readable. Within string, real newline charac..
Chain of workout facilities : HealthWorks Inc, a chain of workout facilities, is looking at a new type of exercise equipment for all of its stores. The total amount of investment (an immediate outflow) will be $550 today and the equipment is expected to last for 5 years with no s..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the companys peso transaction exposure

Suppose an agribusiness in Texas exports its crops. It expects an 18 million peso invoice for an export to Mexico to be paid in 90 days. The current spot and 90-day forward rates are $0.7502/Peso and $0.7422/Peso respectively.

  Antitrust policy can preclude the acquisition of competitor

Antitrust policy can preclude the acquisition of a competitor. The dividend yield is the cash dividend divided by the current market price of the stock. Basic earnings per share include all convertible bonds outstanding.  Investors will generally cho..

  The financial management decision process

The Financial Management Decision Process. What are the three types of financial management decisions? For each type of decision, give an example of a business transaction that would be relevant.

  Manufacturing firm has just presented a decision tree

The VP of Sales for a manufacturing firm has just presented a decision tree for determining whether or not to conduct market research prior to introducing a new product to the US market. Ignoring the actual calculations, how do you evaluate such a pr..

  Compounding frequency and time value

Compounding frequency and time value: You plan to invest $2,000 in an individual retirement arrangement (IRA) today at a nominal annual rate of 8%, which is expected to apply to all future years. What is the effective annual rate (EAR) for each compo..

  What return would you estimate for this asset over

An asset has had an arithmetic return of 10.2 percent and a geometric return of 8.2 percent over the last 88 years. What return would you estimate for this asset over the next 9 years? 24 years? 40 years?

  Estimate that a required rate of return

You are considering the purchase of crown bakery inc. Common stock that just paid a dividend of $20 per share. You expect the dividend to grow at a rate of 5.28 % per year, indefinitely. You estimate that a required rate of return of 12.25 percent wi..

  Death are includible in the deceaseds gross estate

Which of the following statements concerning the “gross-up” rule is (are) correct? I Income taxes paid in the year of death are includible in the deceased’s gross estate. Gift taxes paid in the year of death are included in the deceased’s gross estat..

  Use to create project amortization schedule

The goal of this project is to create a worksheet that through inputs and a series of formulas is a basis of an expandable tool that you can use to create project an amortization schedule. The spreadsheet should be able to do various calculations usi..

  Interest income from state of ohio bonds

Ashley Panda lives at 1310 Meadow Lane, Wayne, OH 43466, and her Social Security number is 123-45-6789. Ashley is single and has a 20-year-old son, Bill. His Social Security number is 111-11-1111.  Ashley had $800 of interest income from State of Ohi..

  Valid restriction in a cooperative interest

Which of the following is not a valid restriction in a cooperative interest? Which of the following is not a remedy available to homeowners' associations for violations of CCRs and rules?

  Stock investments should be accounted for using cost method

Which of the following stock investments should be accounted for using the cost method?

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