Calculate the npv for the new amazongo stores

Assignment Help Financial Accounting
Reference no: EM132470903

Question 1. Based on the above information and sources what are the free cash flows generated by Amazon's 3000 new stores over the 10 year period (refer to your excel spreadsheet)? 

Question 2. Calculate the NPV for the new AmazonGo Stores assuming the cost of capital is 12% and 5%. Which discount rate should Amazon use given that this is a speculative venture?

Question 3. What is the discounted payback period for the project and how does it compare to what the company is hoping for? (Use a discount rate of 12%.) Do you believe their target is realistic?

Question 4. What are the weaknesses about how cash flows are estimated in the article? Can we rely on them in our analysis?

Question 5. Based on your analysis in parts 1-4 would you recommend Amazon undertake the project? Why or why not?

Attachment:- payback.rar

Reference no: EM132470903

Questions Cloud

What impact might stress play on this age group : What impact might stress play on this age group? Do you see any connection between stress and common adolescent risk factors?
Calculating the reained earnings-s investment : Calculating the Reained Earnings-S Investment in Subdiary and non-contrilling interest. Assume that during 2015 Sales Company earned $177,300
Patient narcotic induced respiratory repression : What assessments in the preoperative period may be helpful to prevent the patient's narcotic induced respiratory repression
Why females are affected with utis more the males : Why females are affected with UTIs more the males? Your rationale for this. Suggestions to prevent these infections. What are treatment options?
Calculate the npv for the new amazongo stores : Calculate the NPV for the new AmazonGo Stores assuming the cost of capital is 12% and 5%. Which discount rate should Amazon use given that this is a speculative
Members of the healthcare team : What further nursing intervention pertaining to informed consent is needed and what members of the healthcare team need to be involved to resolve the situation
Discuss advantages and disadvantages of detailed measurement : Discuss the advantages and disadvantages of detailed measurement for a bill of quantities in the context of tendering, post contract activities
Future of nursing leading change-advancing health : Through its deliberations, the committee developed four key messages that structure the recommendations presented in the report.
How is the insurance company financed : Can you tell how the delivery systems when talking about different types of insurances, how is the insurance company financed, how can help management

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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