Expected cash inflows

Assignment Help Financial Management
Reference no: EM13927665

Project K costs $40,000, its expected cash inflows are $14,000 per year for 10 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent.

Reference no: EM13927665

Questions Cloud

Expected cash inflows : Project K costs $62,307.93, its expected cash inflows are $14,000 per year for 9 years, and its WACC is 11%. What is the project's IRR?
The project is expected to cost : The project is expected to cost $25,000 today and expected to provide the same amount of cash inflows of $X for the next 6 years. Assuming that the cost of capital is 12% and its MIRR is 16%. What is $X?
Determine material requirements plans for parts n : Determine material requirements plans for parts N and V and subassembly I as described in Solved Problem 3 ( see p. 532) for each of the following: a. Assume that there are currently 100 Ns on hand and scheduled receipts of 40 Is and 10 Vs at the ..
What is likely to happen to swedish interest rate and why : Assume that the 1-year interest rate in the US is 2% and the 1-year interest rate in Sweden is 4%. You have no additional information on the spot or the forward rate. What is likely to happen to the USD / SKR spot rate and why? What is likely to happ..
Expected cash inflows : Project K costs $40,000, its expected cash inflows are $14,000 per year for 10 years, and its WACC is 12%. What is the project's NPV? Round your answer to the nearest cent.
Expected to provide the same amount of cash inflows : The project is expected to cost $10,000 today and expected to provide the same amount of cash inflows of $Z for the next 4 years. Assuming the cost of capital is 10% and its IRR is 12%, what is the NVP of this project?
What was your total return for the past year : You purchased a zero-coupon bond one year ago for $281.83. The market interest rate is now 9 percent. Required: If the bond had 15 years to maturity when you originally purchased it, what was your total return for the past year?
What is the standard deviation of the stocks returns : You find a certain stock that had returns of 13.4 percent, –21.7 percent, 27.7 percent, and 18.7 percent for four of the last five years. Assume the average return of the stock over this period was 11.40 percent. What was the stock’s return for the m..
Expected return on market portfolio : Stock XYZ: earning at time 0 E0 = $2.50, b = 40%, ROE = 13%, risk-free rate is 3%, expected return on market portfolio is 9%, the beta of stock XYZ is 1.5, and CAPM is valid. (1) What’s the required rate of return k based on CAPM? (2) What’s D1 of st..

Reviews

Write a Review

Financial Management Questions & Answers

  Capital balance after closing income summary to capital

Deng and Dang are partners who share income in the ratio of 3:2. Their capital balances are $48,122 and $62,776 respectively. Income Summary has a credit balance of $44,798. What is Deng's capital balance after closing Income Summary to Capital?

  What is its annual amount of coupon

Corpstein Company bonds have a coupon rate of 7.9 percent, 25 years to maturity, and a current price of $863. The bond has a face value of $1,000. What is its annual amount of coupon?

  Discuss the trends and offer the reader

How has Procter and gambles stock performed in the short term and the long term? Discuss the trends and offer the reader you opinion as to why the stock has performed the way it has.

  Compute milts recognized gain or loss on the sale

Milt Payner purchased an automobile several years ago for $40,000 and has held it as a personal asset ever since. This year he sold the automobile. Compute Milt's recognized gain or loss on the sale if: a. Milt's amount realized on sale was $28,300. ..

  Saving for college

You expect that your daughter will go to college ten years from now. Taking account of inflation, you estimate that you will need $160,000 to support her during her years in college. Assume an interest rate of 4 percent on your savings accounts. How ..

  Supply has earnings before interest and taxes

Dharma Supply has earnings before interest and taxes (EBIT) of $524000, interest expenses of $325000 abd faces a corporate tax rate of 36 percent. What is Dharma Supply's Net Income? what would dharma net income be if it didn’t have any debt?

  Lockbox system

Hardin-Gehr Corporation (HGC) began operations 5 years ago as a small firm serving customers in the Detroit area. However, its reputation and market area grew quickly. Today HGC has customers all over the United States. Despite its broad customer bas..

  The larger the portion of a firm''s sales that are on credit

the larger the portion of a firm's sales that are on credit, the

  Discussing possible investments in the international

Dr. Bueller had recently overheard a few of his colleagues discussing possible investments in the international marketplace. Wanting to explore all of his potential investment options, he has asked you to explain the various aspects of investing i..

  The risk-free rate and expected return on the market

The risk-free rate is 4.2 percent and the expected return on the market is 12.3 percent. Stock A has a beta of 1.2 and an expected return of 13.1 percent. Stock B has a beta of 0.75 and an expected return of 11.4 percent. Are these stocks correctly p..

  Debt obligation of the issuer

Which of the following investments in NOT a debt obligation of the issuer?

  Read the journal article avlonitis g j amp indounas k a

read the journal article avlonitis g. j. amp indounas k. a. 2005 pricing objectives and pricing methods in the services

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