Compute the npv of the project

Assignment Help Finance Basics
Reference no: EM131732368

Question: Project Evaluation. Kolby's Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sausage system can be scrapped for $85,000. The sausage system will save the firm $183,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $35,000. If the tax rate is 34 percent and the discount rate is 8 percent, what is the NPV of this project?

Reference no: EM131732368

Questions Cloud

What is the ocf for the project : Calculating Project OCF. H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $1,950,000.
Discuss the health care beliefs of the baltic heritage : Mention and discuss the health care beliefs of the Baltic and Brazilian heritage.Discuss and give at least 2 examples of the care beliefs of these two culture.
Examples of competitive markets : Coffee shops in a large city would appear to be examples of competitive markets: there are numerous relatively small sellers, each seller is a price-taker
Determining the floating exchange rate : Suppose that a country has been using a fixed exchange rate for many years. The they decide to switch to a floating exchange rate.
Compute the npv of the project : Project Evaluation. Kolby's Korndogs is looking at a new sausage system with an installed cost of $655,000. This cost will be depreciated straight-line to zero.
Define how a particular patients pharmacokinetic : how a particular patient's pharmacokinetic and pharmacodynamic processes altered his or her response to a drug
Define a history of severe late-phase asthma : A patient with a history of severe late-phase asthma response is prescribed an inhaled short-acting bronchodilator, corticosteroid
Does marvin have a title vii complaint : a. Does Marvin have a Title VII complaint? Why? b. Does Marvin have any legal recourses against his employment-at-will status?
Was the sample for this study adequately described : What statistics were calculated to describe body mass index (BMI) in this study? Were these appropriate? Provide a rationale for your answer.

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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