Computation of npv of an investment

Assignment Help Finance Basics
Reference no: EM1314266

Computation of NPV of an investment

You have been offered the following investment: You will put up $60,000 now and additional $75,000 at the end of year two. You will receive back $20,000 at the end of the next 8 years. The interest rate is 9%. What is the net present value of this investment and should you do it?

Reference no: EM1314266

Questions Cloud

The whole number dimensions : The whole number dimensions.
Calculating ending inventory in both units : Calculating Ending Inventory in both units and dollars, Cost of Goods sold, Commission to Manager & Gross Profit for the given period and evaluate cost of goods available for sale and the number of units available for sale.
Non parametric test-mann whitney wilcoxon test : Conduct post hoc comparisons with the LSD method. Which groups differ significantly at α = 0.05?
Non parametric test-mann whitney wilcoxon test : Conduct post hoc comparisons with the LSD method. Which groups differ significantly at α = 0.05?
Computation of npv of an investment : Computation of NPV of an investment and What is the net present value of this investment and should you do it
Evaluate the cost assigned to ending inventory : Evaluate the cost assigned to ending inventory and to cost of goods sold using a) specific identifacation, b) weighted average, c) FIFO and d) LIFO
Exponential model problems : Exponential model problems
Computation of incremental cash flows and free cash flows : Computation of incremental cash flows and free cash flows and What is the present value of the free cash flows of this project
Application of manufacturing overhead : The application of manufacturing overhead would be recorded as a debit to - A good description of "cost of goods manufactured" is the recorded cost.

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Computation of selection of the project

Computation of selection of the project and evaluating two mutually exclusive projects and Costs and cash flows are given in the following table

  Preparation of a balance sheet with given trial balance

Prepare a balance sheet at December 31, 2007 for John Nalezny Corporation and Ignore income taxes

  Expected return and standard deviation for portfolio

Compute the expected return and standard deviation for portfolio if Diane borrows the extra $1000 at risk free rate of 4% and invest everything in market portfolio.

  Computation of depreciation expense

Computation of Depreciation expense and What is Laiho's depreciation expense but no amortization expense

  National newsmagazine publishes

National newsmagazine publishes the article on efforts to limiting smoking in public places.

  Deduce formula for weights of stocks

Deduce formula for weights of stocks A also B at which variance of portfolio P is minimal.

  True and false questions on initial public offering

True and false questions on initial public offering and other forms of capital and The proceeds of the A123 IPO were used to repay bank loans and buy back outstanding debt

  Computation of firm''s weighted average cost

Computation of firm's weighted average cost of capital considering marginal tax rate and what is the firm's weighted average cost of capital.

  Computation of earnings per share at the given net income

Computation of Earnings per share at the given net income in addtion to this calculate the return on investment using the Du Pont method

  Calculation of cost of capital for western communications

Calculation of cost of capital for Western Communications

  Discuss on investment plan for peterson music

Discuss on Investment plan for Peterson Music has the chance to purchase the copyright to a new album of songs

  What effect does rising risk have on value of the asset

All else being the same, what effect does rising risk have on value of the asset. Describe in light of your findings in part a.

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