Considering a project with an initial outlay

Assignment Help Financial Management

Reference no: EM13724937

East Coast Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $52,000 a year at the end of each year for the next 16 years. The appropriate discount rate for this project is 9 percent. If the project has an internal rate of return of 12 percent, what is the project's net present value? If the discount rate is 12 percent, then the project's NPV is?

Reference no: EM13724937

Questions Cloud

Greases ex-post returns based on historic sample measures : Which of the following had the greases ex-post returns based on historic sample measures?

About issuing health insurance to a firms employees : In each of the following situations, moral hazard or adverse selection may be present. Indicate which you think is present, if any, and explain your choice. In each of the situations, what could be done to overcome the problem?

Explain two factors that affect the present value of asset : Which is better, a present value of $100 or a future value of $100? Please explain. Define and explain two factors that affect the present value of an asset. In five years, what is the future value of $4,000 if the interest rate is 10% and money is c..

What would be the total return : A stock sells for $20 per share and you purchase 100 shares. If the value of stock doubles to $40 in 1 year what would be the total return? What would be the total return if the required margin where:

Considering a project with an initial outlay : East Coast Television is considering a project with an initial outlay of $X (you will have to determine this amount). It is expected that the project will produce a positive cash flow of $52,000 a year at the end of each year for the next 16 years. T..

What is the internal rate of return : What is the internal rate of return for the following project: an initial outlay of $10,500 resulting in a single cash inflow of $20,462 in 7 years?

Analysis of the monthly demand for service has revealed : The eastern shuttle, INC is a regional airline providing shuttle service between New York and Washington DC. An analysis of the monthly demand for service has revealed the following demand relation:

What annually compounded interest rate : Trent receives a check for $20,000 from his parents for his 20th birthday. He decides to deposit this money into an account earning a 9% interest rate compounded monthly, forever.

Compute the amount of the after tax income : The treasurer of Kelly Bottling Company (a corporation) currently has $150,000 invested in preferred stock yielding 8 percent. He appreciates the tax advantages of preferred stock and is considering buying $150,000 more with borrowed funds. The cost ..

User Account

All Pages