Calculate net present value for given twenty year projects

Assignment Help Financial Management
Reference no: EM131328761

Calculate the net present value (NPV) for the following twenty-year projects. Comment on the acceptability of each. Assume that the firm has an opportunity cost of 14 percent.

a. Initial cash outlay is $15,000; cash inflows are $13,000 per year.

b. Initial cash outlay is $32,000; cash inflows are $4,000 per year.

c. Initial cash outlay is $50,000; cash inflows are $8,500 per year.

Reference no: EM131328761

Questions Cloud

Mutual funds have traditionally not partaken : Mutual Funds have traditionally not partaken in Shareowner Activism. If a Portfolio Manager does not want to partake in Shareowner Activism, what technique can they use ?
Degree of operating leverage at given level of output : In the previous problem, what is the degree of operating leverage at the given level of output? What is the degree of operating leverage at the accounting break-even level of output?
Create the company gaga inc using the product sherbetter : In this Assignment, you will learn how Jim King and his wife decided to create the company GaGa's Inc. using the product Sherbetter, a frozen desert product line. GaGa's quickly expanded the product line from just Lemon to several other flavors as..
What functions does the ciso perform : What functions does the CISO perform, and what are the key qualifications and requirements for the position?
Calculate net present value for given twenty year projects : Calculate the net present value (NPV) for the given twenty-year projects.- Comment on the acceptability of each.
How do individuals respond to the campaign : Discuss the mass media impacts that are related to your chosen product and the advertising campaign. Examine the campaign from at least 2 theories, research approaches, or perspectives. Also, include responses to the following questions in your di..
Calculate the average returns and standard deviations : Returns Year X Y 1 17 % 20 % 2 20 32 3 – 7 – 18 4 11 15 5 10 22 Using the returns shown above, calculate the average returns, the variances, and the standard deviations for X and Y.
Indicate whether to accept or reject the machine : calculate the NPV, indicate whether to accept or reject the machine, and (3) explain your decision.- The cost of capital is 10 percent.
Who should pay for the expenses of certification and why : List and describe the standard personnel practices that are part of the information security function. What happens to these practices when they are integrated with information security concepts?

Reviews

Write a Review

Financial Management Questions & Answers

  Coupon bonds on the market t

Aloha Inc. has 8 percent coupon bonds on the market that have 13 years left to maturity. If the YTM on these bonds is 10.42 percent, what is the current bond price?

  What coupon rae would bonds have to pay to be issued at par

Chapman has a coupon rate of 9.63 it maturity 01/01/2042 Last price was $95.09 Lasst yield is 10.15% ESt spread is 7.15 UST is 30 years Est Volume is 65,275. If Chapman wants to issue new 30 year bonds today, what coupon rae would the bonds have to p..

  Bonds outstanding that are selling at par value

Jack's Construction Co. has 80,000 bonds outstanding that are selling at par value. Bonds with similar characteristics are yielding 8.6 percent. The company also has 4 million shares of common stock outstanding.

  About the future value of a dollar

Which of the following statements about the future value of a dollar is true?

  Determining the cost of capital

A summary of your interview that includes who you interviewed, a brief description of his or her role and responsibilities within the organization, and how the interview was conducted.

  Cost of common equity and wacc

Patton Paints Corporation has a target capital structure of 40% debt and 60% common equity, with no preferred stock. Its before-tax cost of debt is 9% and its marginal tax rate is 40%. The current stock price is P0 = $31.50. The last dividend was D0 ..

  Stock using the two-stage dividend discount model

You see a fast growing company that is estimated to have dividend growth of 24%, 20%, and 16% over each of the next three years (24% in year 1 in year 2 20% and in year 3 16%) The company paid a dividend of $2.28 per share over the past twelve months..

  An investor can make tactical adjustments

Once a strategic asset allocation is in place, an investor can make “tactical” adjustments to take advantage of market opportunities or to avoid risks. Which of the following is not an example of tactical shifts:

  Clarify the NAL and maximum lease payment

The Wildcat Oil Company is trying to decide whether to lease or buy a new computer-assisted drilling system for its oil exploration business. Management has decided that it must use the system to stay competitive; it will provide $2.7 million in annu..

  The segments of society

In this exercise I want you to consider the socio-economic situation of each group in the 1910s, 1920s, and 1930s. Provide ONE example that you think best illustrates how people in this group lived or key issues they faced during each decade.

  Effect of the price increase on the firm’s fcf for year

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 90 percent as high if the price is raised 10 percent. What ..

  Decide how many pipe rolling machines to purchase

Managers at Midnight Manufacturing must decide how many pipe rolling machines to purchase. Each machine can process 100 pipes per hour. One machine will result in a fixed cost of $2,100 per hour, while two machines will result in a fixed cost of $3,7..

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