User Account

All Pages

Explain why the npv of a relatively long-term project

Assignment Help Finance Basics
Reference no: EM131101128

Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to changes in the cost of capital than is the NPV of a short-term project.

Reference no: EM131101128

Questions Cloud

What is the net income for the firm : Shelton, Inc., has sales of $394,000, costs of $182,000, depreciation expense of $47,000, interest expense of $28,000, and a tax rate of 30 percent. (Do not round intermediate calculations.) What is the net income for the firm?
Calculate the value of interference for this interval : Calculate the value of interference for this interval.
What is the assumed reinvestment rate of each method : In what sense is a reinvestment rate assumption embodied in the NPV, IRR, and MIRR methods? What is the assumed reinvestment rate of each method?
Explain why, if two mutually exclusive projects : Explain why, if two mutually exclusive projects are being compared, the short-term project might have the higher ranking under the NPV criterion if the cost of capital is high, but the long-term project might be deemed better if the cost of capital i..
Explain why the npv of a relatively long-term project : Explain why the NPV of a relatively long-term project, defined as one for which a high percentage of its cash flows are expected in the distant future, is more sensitive to changes in the cost of capital than is the NPV of a short-term project.
List the sequence of all outputs that are observed : E15: Fundamentals of Digital Systems - Fall 2010 - HOMEWORK 8. List the sequence of all outputs that are observed when incrementing the counter from 0 to 15, and wrapping back around to 0.  Mark the out-of-order outputs with a star
How is a project classification scheme used in the capital : How is a project classification scheme (for example, replacement, expansion into new markets, and so forth) used in the capital budgeting process?
Paper looking for structural concerns : Write a 750-1000 word essay about a pair of items in which the similarities and differences of those items are compared and contrasted in the style described within Unit III. For this assignment, you will edit and revise your Unit III Comparative ..
Required dollar rate of return on projects : Your company's required dollar rate of return on projects of similar risk is 10%. Inflation in the US and Japan is expected to be 3% and 2%, and the current spot rate is ¥ 125/$.

Reviews

Write a Review

Finance Basics Questions & Answers

  Computation of current value of shares of a given stock

Computation of current value of shares of a stock under given dividend growth rate and are expected to continue growing at this rate for the foreseeable future

  Would this be an acceptable purchase price

If an investor is willing to pay a P/E multiple that is no higher than 2.5 times its growth rate, and the stock is currently selling at $100 per share, would this be an acceptable purchase price? Explain and support your answer with numbers.

  Crystal glass recently paid 360 as an annual dividend

crystal glass recently paid 3.60 as an annual dividend. future dividends are projected at 3.80 4.10 and 4.25 over the

  Investment in the new marketing campaign

For each of the above figures of merit, explain whether the firm should accept or reject the project. Given the results of your analysis, should Watson Corporation make the investment in the new marketing campaign? Why or why not?

  If you invest 8000 per period for the following number of

if you invest 8000 per period for the following number of periods how much would you have?a. 7 years at 9 percent.b. 40

  The company pays out 40 percent of its earnings asdividends

the bouchard companys eps was 6.50 in 2005 up from4.42 in 2000. the company pays out 40 percent of its earnings

  As your text describes ratio analysis is a common technique

as your text describes ratio analysis is a common technique in financial analysis. one of your colleagues states that

  Describe the resolution process

Describe the resolution process

  What is the net present value of the investment in the

a new furnace for your small factory will cost 4500 a year to install and will require ongoing maintenance

  Stock using the most recent earnings per share (eps)

Using the data available for the company comprising the largest percentage of your portfolio, calculate the dividend payout ratio, growth rate of the company's dividends, price-to-earnings (P/E) ratio, and the maximum P/E ratio that you would apply t..

  What is kanos filing status

Assume the original facts except that Kano's parents, not Kano, paid more than half of the cost of maintaining the home in which Kano and his children live. What is Kano's filing status?

  What will be the value of each of these bonds

The Garraty Company has two bond issues outstanding. Both bonds pay $100 annual interest plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S a maturity of 1 year. a. What will be the value of each of these bonds when the going rate..

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd