Beach control systems will invest 90000 in a temporary

Assignment Help Finance Basics
Reference no: EM13569683

Beach Control Systems will invest $90,000 in a temporary project tat will generate the following cash inflows for the next three years.

Year         Cash Flow

1              $23,000

2                38,000

3                60,000

The firm will be required to spend $15,000 to close down the project at the end of three years. If the cost of capital is 10%, should the investment be undertaken? Use the present value method.

Reference no: EM13569683

Questions Cloud

Antibodies and antitoxins what toxins are found in the : what toxins are found in the blood and how are they neutralised? is an antigen a toxin? ltbrgt
Performance drinks - a further study of regression analysis : i need a word document and an excel document with the answers to this problem that are attached. i believe that this
Analysis of investment dear sir madamcan you please provide : dear sir madam ltbrgt ltbrgtcan you please provide me the attached solution plagiarism free. looking forward to hear
Carson incs manager believes that economic conditions : carson inc.s manager believes that economic conditions during the next year will be strong normal or weak and she
Beach control systems will invest 90000 in a temporary : beach control systems will invest 90000 in a temporary project tat will generate the following cash inflows for the
The accounting records of bronco company revealed the : the accounting records of bronco company revealed the following informationraw materials used 78000direct
Jim angel holds a 200000 portfolio consisting of the : jim angel holds a 200000 portfolio consisting of the following
Assume a corporation has earnings before depreciation and : assume a corporation has earnings before depreciation and taxes of 116000 depreciation of 44000 and is in a 30 percent
Calculate the profit margin and gross profit rate for the : the following selected data was retrieved from the walmart inc. financial statements for the year ending january 31

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the investments probability index

Your firm is considering an investment that will cost $750,000 today. The investment will produce cash flows of $250,000 in year 1, $300,000 in year 2 through 4, and $100,000 in year 5. The discount rate that your firm uses for projects of this 13..

  What is the current value of one share of this stock

The company just paid its annual dividend in the amount of $1.20 per share. What is the current value of one share of this stock if the required rate of return is 9.25 percent?

  London purchased a piece of real estate last year for

london purchased a piece of real estate last year for 85300. the real estate is now worth 103200. if london needs to

  Explain the concept of a real option

Finally, explain the concept of a real option and how this can help Joshua and Jim as they continue with their business.

  What will be the expected rate ofreturn for the coming year

Calculate the annual rate of return for each of the last five years (Sep 1st of each year) since the bonds wereissued.

  In this assignment you will compare and evaluate risk

in this assignment you will compare and evaluate risk management techniques from experts in the field. go to the

  Aurand inc has outstanding bonds with an 8 annual coupon

aurand inc. has outstanding bonds with an 8 annual coupon rate paid semiannually. the bonds have a par value of 1000 a

  You own 1000 shares of xyz and have purchased ten

you own 1000 shares of xyz and have purchased ten protective put contracts. the puts have a delta of -0.317.a what is

  Liabilities and equity categories

ATM Banc has the following liabilities and equity categories

  What is the current price of the common stock

The company's last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?

  What is meant by earnings quality why do users assess

what is meant by earnings quality? why do users assess earnings quality? what major factors determine earnings

  Compute the annual return

Avicorp has a $12.1 million debt outstanding, with a 6.2% coupon rate. The debt has semi-annual coupons, the next coupon is due in six months, and the debt matures in five years. It is currently priced at 95% of par value.

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