User Account

All Pages

Calculate the npv of the project

Assignment Help Accounting Basics
Reference no: EM131787091

Following details are provided by Dopler Company.

Initial investment $2,000,000
Discount rate 12%
Yearly cash flows
1 $200,000
2 $400,000
3 $400,000
4 $400,000
5 $200,000

Refer to the following table for PV factors:

10% 11% 12% 13%
1 0.909 0.901 0.893 0.885
2 0.826 0.812 0.797 0.783
3 0.751 0.731 0.712 0.693
4 0.683 0.659 0.636 0.613
5 0.621 0.593 0.567

0.543

Calculate the NPV of the project.

A. $250,000 positive
B. $1,005,000 positive
C. $950,000 negative
D. $850,000 negative

Reference no: EM131787091

Questions Cloud

Futures contract and a forward contract : Explain the differences between a futures contract and a forward contract.
Forward contract face counterparty risk : Why do both the buyer and seller of a forward contract face counterparty risk?
What amount should general machinery report as a liability : Total actual warranty expenditure = $ 70,875, What amount should General Machinery report as a liability at December 31, 2012
Calculate the expected rate of return for each currency : Comparing rates of return. Please calculate the expected rate of return for each currency from the standpoint of a US dollar investor.
Calculate the npv of the project : Calculate the NPV of the project, Following details are provided by Dopler Company
Treasury bond futures contract : What does it mean if the cost of carry is positive for a Treasury bond futures contract?
Which type of car sold the most in all three years : Compare the types of cars sold in 1985, 2000, and 2007 as shown in the figure. (Source: 2009 World Almanac and Book of Facts)
Annualized futures three-month libor : If the Eurodollar futures contract is quoted at 91.75, what are the annualized futures three-month LIBOR?
What is the maximum write-off for these purchases : Sid elects not to take additional first-year depreciation. If Sid elects § 179, what is the maximum write-off for these purchases for 2010

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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