Depreciated on straight-line basis down to zero

Assignment Help Financial Management

Reference no: EM131929045

Project Alpha requires an immediate investment of $50,000 that will be depreciated on a straight-line basis down to zero. The project’s inflows are estimated to be $90,000 per year, and the project’s outflows are estimated to be $50,000 per year. The project has a 5-year life. Assuming no salvage value, a tax rate of 30%, and a required rate of return of 20%, which of the following comes closest to Alpha’s NPV?

Reference no: EM131929045

Questions Cloud

Identify two rationing tools other than market forces : Explain this function. Identify two rationing tools other than market forces.

Should message be tailored to different demographic group : How is the message conveyed differently between traditional media and social media? Should the message be tailored to different demographic groups? Why?

Compute the net operating income for this property : Use the first sheet of the spreadsheet (titled “NOI”) to compute the Net Operating Income (NOI) for this property for 2015.

What is the marginal cost of the 10 computer : When it produces another computer its total costs rise to $80,700. What is the marginal cost of the 101stcomputer?

Depreciated on straight-line basis down to zero : Project Alpha requires an immediate investment of $50,000 that will be depreciated on a straight-line basis down to zero

What geographic region do you plan to cover : What geographic region do you plan to cover? What other key factors do you need to keep in mind during your research process?

Determining the social optimum : Stan's dog is causing the damage, so if the social optimum is to be achieved, the only solution is to have Stan pay to put up a fence around

What was the biggest impact of the enlightenment and why : Explain origins of the Enlightenment in term of social, cultural, economic and political developments. What was the biggest impact of the Enlightenment and why?

Find the proportion of money : Find the proportion of your money that you need to invest in instrument A in order to achieve your immunization goal.

User Account

All Pages