User Account

All Pages

Calculate the net present value of project y

Assignment Help Business Management
Reference no: EM132168939

A corporation is considering an investment in one of two potential projects. Each project requires an initial investment of $6000. Project X will produce cash flows of $400 at the end of each 6-month period. The cash flows are expected to continue for ever. The first cash flow is expected 6 months after the initial investment. Project Y will have a single cash flow of $W which will be received exactly 5 years after the initial investment. The IRR on both projects is the same. Calculate the net present value of Project Y, using an annual effective interest rate of 10%.

Reference no: EM132168939

Questions Cloud

Find real or differential inflation rate of salary increases : Assume your salary is $35,000 in 1995 and $60,000 in 2035. If inflation has averaged 2% per year, what is the real or differential inflation rate.
What was the capital gain of the tips in dollars : What was the capital gain of the TIPS in dollars? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
What has been the average yearly rate of appreciation : In the 1920 Sears Roebuck catalog, an oak chest of drawers costs $8 plus freight. In 1990, this same chest of drawers, in good condition, is $1200.
Determine the present value of the cash flows : The ABC Block Company anticipates receiving $4000 per year from its investments (differential inflation rate of 0%) over the next 5 years.
Calculate the net present value of project y : The IRR on both projects is the same. Calculate the net present value of Project Y, using an annual effective interest rate of 10%.
What is the differential inflation rate in felix salary : Felix Jones, a recent engineering graduate, expects a starting salary of $35,000 per year. His future employer has averaged 5% per year in salary increases.
Required return according to the sml-capm equation : The 5-year Treasury bond yield is 1.3% and investors demand a 9.5% return on the market. What is Buffalo Wild Wings's required return according to the SML/CAPM
What is the pw of the machinery : The Widget Company will need a certain type of milling machine for its new assembly line. The machine presently costs $85,000.
What is the company pretax cost of debt : The issue makes semiannual payments and has an embedded cost of 7 percent annually.

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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