Determine what must the projects initial cost be

Assignment Help Financial Econometrics
Reference no: EM13335165

A project has the following cash flows for years 1 through 3 respectively: 1,698, 1,467, 1,855. Using a discount rate of 10.2 percent, it has been determined that the profitability index is 0.97. What must the project's initial cost be?

Reference no: EM13335165

Questions Cloud

What would be the total return of the bond in dollars : A 8.3 percent coupon bond with 16 years left to maturity is priced to offer a 6.65 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.4 percent.
Activity based costing operating and financial budgets : Borkenstick makes a very popular undyed cloth sandal in one style, but in Regular and Deluxe. The Regular sandals have such soles and the Deluxe sandals have cloth covered wooden soles.
Evaluate whether the system has reached equilibrium : Some AgCl(s) has been placed in a beaker of water. After some time, the solubility of Ag+ and Cl- was measured to be 2.5 x 10-5 M. Determine whether the system has reached equilibrium.
What is the current macroeconomic situation : What is the "current macroeconomic situation" (e.g. worrying about inflation and/or recession) in the U.S.? What should the U.S. Congress and the Federal Reserve do about it?
Determine what must the projects initial cost be : A project has the following cash flows for years 1 through 3 respectively: 1,698, 1,467, 1,855. Using a discount rate of 10.2 percent, it has been determined that the profitability index is 0.97.
What is the best practice for us to deal with these scenario : here are practical and legal reasons for not performing the examination on the suspect's computer, but sometimes you have to compromise. If we make a compromise, is it acceptable by the court? What is the best practice for us to deal with these sc..
An adaptive project management life cycle mode : Explain the similarities and differences between an adaptive project management life cycle model and an extreme project management life cycle model.
Determine what is the payback period for the project : A project has the following cash flows for years 0 through 3, respectively: -14,886, 5,172, 5,464, 19,563. What is the payback period
What is the rockets thrust : A rocket, which is in deep space and initially at rest relative to an inertial reference frame, has a mass of 59.6 × 105 kg, of which 7.27 × 105 kg is fuel. What is the rocket's thrust

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Find what is the size of each deposit needed to make

You estimate that you will need $840 thousand in 30 years to buy some cybernetic body enhancements, including infrared vision, retractable claws, and expanded brain storage capacity.

  How much money will have in the account in 15 years

If you deposit $5,800 at the end of each of the next 15 years into an account paying 11.30 percent interest, how much money will you have in the account in 15 years

  What annual contributes to the retirement fund will allow

during the period before retirement you can earn 8% annually, while after retirement you can earn 10% on your money. What annual contributes to the retirement fund will allow you to recieve the $12,000 annuity

  Find and depict on a time line the relevant cash flow stream

Lasting Impressions Company: Lasting Impressions (LI) Company is a medium-sized commercial printer of promotional advertising brochures, booklets, and other direct-mail pieces.

  What is correlation coefficient between returns of two stock

The standard deviation of Einstein is 0.26, and the standard deviation of Bohr is 0.37. What is the correlation coefficient between the returns of the two stocks

  What will clubs stock price be at the end of the first year

Genuine Producs Inc. requires a new machine. Two companies have submitted bids, and you have been assigned the task of choosing one machine.

  Find what is the length of the firms cash conversion cycle

The saliford corporation has an inventory conversion period of 60 days, a receivables collection period of 36 days, and a payables deferral period of 24 days. a. what is the length of the firms cash conversion cycle

  Calculate the npv if the discount rate is 10 percent

A project that costs $3,600 to install will provide annual cash flows of $860 for each of the next 6 years. A. Calculate the NPV if the discount rate is 10% B. Is this project worth pursuing

  Determine appropriate amount and classification of each item

Unearned revenue of $78,000 is included as a current liability even though only two-thirds will be earned in 2014. Determine the appropriate amount and classification of each of the following items (in order of liquidity).

  How to state the decision rule for a significance level

Research in the gaming industry showed that 11% of all slot machines in the United States stop working each year. Short's Game Arcade has 60 slot machines and only 2 failed last year.

  Explain why should the change in credit terms be made

Rramsey tires sells on credit terms of net 45 days, whereas the rest of the industry sells on terms of net 30 days. On annual credit sales of $6 million, Ramsey currently averages 52 days sales in accounts receivable.

  Find effective interest rate for fidelity and southwest bank

Summit Record Company is negotiating with two banks for a $136,000 loan. Fidelity Bank requires a 14 percent compensating balance, discounts the loan, and wants to be paid back in four quarterly payments.

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