User Account

All Pages

Calculate the net present value (npv)

Assignment Help Finance Basics
Reference no: EM131108099

Dane Cosmetics is evaluating a new fragrancemixing machine. The machine requires an initial investment of $24,000 and will generate after-tax cash inflows of $5,000 per year for 8 years. For each of the costs of capital listed, 

(1) Calculate the net present value (NPV), 

(2) Indicate whether to accept or reject the machine, and 

(3) Explain your decision.

a. The cost of capital is 10%.

b. The cost of capital is 12%.

c. The cost of capital is 14%.

Reference no: EM131108099

Questions Cloud

Expected value of information : A firm's expected profit without information is $49,495, while its expected value with test information is $57,902. If the cost of the test is $14,710, then the expected value of information is
What events lead to the great war or world war i : What events lead to the great war or world war I? What did american gain, and what did they lose during this time
A possible investment candidate : I need you to analyze a Stock X as a possible investment candidate for the company's stock portfolio. The CFO has asked me to make a decision ASAP. I left the data you need on your desk.
In what ways was chinese history similar to roman history : In what ways was Chinese history similar to Roman history during the classical period? Was the Chinese empire created in a similar way to the Roman Empire? Did it have a similar effect on Chinese society
Calculate the net present value (npv) : Calculate the net present value (NPV), Indicate whether to accept or reject the machine, and Explain your decision.
Draw a conclusion about the impacts of new technologies : Draw a conclusion about the impacts of new technologies and understandings of nature and humanity on medieval culture. Consider both Christian and Arab developments
Sharp metal edge of a table : A century ago, there was, of course, no such thing as KFC; automobiles were still a novelty; and if you cut your finger on the sharp metal edge of a table, you ran a real risk of dying from blood poisoning. The entire masterpiece gives?
Determine the final pressure and the heat transfer : Determine the final pressure and the heat transfer, in kJ/kg, associated with the process.
What is expected value of object to buyer who sees signal l : The signal can be either high (H) or low (L) with equal probability. If both obtain signal H, the object is worth 1; otherwise, it is worth 0. What is the expected value of the object to a buyer who sees signal L? To a buyer who sees signal H?

Reviews

Write a Review

Finance Basics Questions & Answers

  Strategic-alternative bundles-triggers and contingencies

Through the use of strategic alternatives, companies may compete in a marketplace, achieve its vision, or if no vision has been articulated, decide where it might go and what it might achieve.

  Time value of money concepts of life insurance policy

You're the beneficiary of a life insurance policy. The insurance company informs you that you have two options for receiving the insurance proceeds.

  Explain the logic behind the establishment of the gold stand

Explain the logic behind the establishment of the Gold standard.

  What is its yield to maturity ytmassume that the yield to

a bond has a 1000 par value 10 years to maturity and a 7 annual coupon adn sells for 985.a. what is its yield to

  The owner wants to be paid in two payments - one payment

a property worth 1500000 is to be sold by its owner. the owner wants to be paid in two payments - one payment now and

  A company is 46 financed by risk free debt the interest

a company is 46 financed by risk free debt. the interest rate is 11 the expected market risk premium is 9 and the beta

  Identify and briefly explain four of malkiels five theorems

Identify and briefly explain four of Malkiel's five theorems. Explain the conditions under which an investor should place more reliance on the yield-to-call than on the yield-to-maturity.

  Assignment on recognizing employee contributions

You are the HR manager of a relatively new retail company that has both retail stores and Internet sales.  Your company is steadily growing in revenue and profitability.

  Compare and contrast the internal rate of return irr the

compare and contrast the internal rate of return irr the net present value npv and payback approaches to capital

  Report on nyse and nasdaq

Write a report for a group of new stock brokers about the NYSE-Euronext and the NASDAQ. Visit both the NYSE

  Many jurors assume the defendant has insurance

Many jurors assume the defendant has insurance coverage and therefor no harm is done by awarding the plaintiff damages. What are the moral hazards? What is the affect on insurance premiums on consumers?

  What is the after tax cash flow from the sale of this asset

If the relevant tax rate is 35 percent, what is the after tax cash flow from the sale of this asset?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd