Calculate what is the project net present value

Assignment Help Finance Basics

Reference no: EM131982359

Question: A manufacturer of paper and paper board is considering the replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400 and is expected to last for 5 years with no salvage value. Straight line depreciation will be used. Cash inflows connected with the new machinery are expected to be $200 each year and cash outflows are expected to be $80 each year. If the tax rate is 30%, and if the required rate of return is 7%, what is the project's net present value?

Reference no: EM131982359

Questions Cloud

How would you apply yield management concept to a barbershop : How would you apply yield management concepts to a barbershop? How would you apply yield management concepts to a soft drink vending machine?

Explain what is the contribution margin : For a manufacturing company, selling price for an item is $500 per Unit, Variable cost is $300 per Unit, rent is $6000 per month and insurance is $3000.

What is the natural frequency of a spring block system : a) What is the natural frequency of a spring -block system if the mass of the block is 0.5 kg and the spring constant is 100 N/m.

Explain the role of software in project management : Discuss how project management techniques can be used to improve the completion of projects. Explain the role of software in project management.

Calculate what is the project net present value : A manufacturer of paper and paper board is considering the replacement and upgrading of machinery that would improve efficiency. The new machinery costs $400.

Car starts from rest and travels : An 800 kg car starts from rest and travels a distance of 75.0 m in 5.0 seconds. Which of the following is the correct net force acting on the car

How does depreciation expense affect the level of cash flows : Many projects in the first year will provide an increase to something called 'working capital'....Does this represent a cash inflow or a cash outflow? Explain.

Explain what your career will look like in ten years : Explain what your career will look like in 10 years & how you got there. The focus should be on the jobs you plan to take and your motivation for taking them.

Coefficient of kinetic friction between the box and ground : A box moving on a horizontal surface with an initial velocity of 20 m/s slows to a stop over a time period of 5.0 seconds due solely to the effects of friction.

User Account

All Pages