Find project net present value if the required rate is given

Assignment Help Finance Basics

Reference no: EM132058333

Question: A project is expected to create operating cash flows of $26,500 a year for four years. The initial cost of the fixed assets is $62,000. These assets will be worthless at the end of the project. An additional $3,000 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?

Reference no: EM132058333

Questions Cloud

What is the project payback period : A project has an initial cost of $45,000.00, expected net cash inflows of $9,900.00 per year for 11 years, and a cost of capital of 12.25%.

Other inheritable diseases : Propose a hypothesis for why this allele has not been eliminated by natural selection.

Explain liability under securities laws : Explain the duties, powers, and liability of officers and directors. Explain liability under securities laws.

Outcome bringing in a non-native animal : What will be the outcome bringing in a non-native animal or insect to eat the Kudzu and help control its spread?

Find project net present value if the required rate is given : A project is expected to create operating cash flows of $26,500 a year for four years. The initial cost of the fixed assets is $62,000.

How human activity was a factor in biological exchange : Explain the role that biological exchange had on historical events in Eurasia in the time period covered in this chapter (about 200 BCE to 500 BCE).

What is sexual and asexual reproduction : What is sexual and asexual reproduction? Do chlamydomonas use both? Is that beneficial?

What is the project pi : A project has an initial cost of $62,825, expected net cash inflows of $8,000 per year for 6 years, and a cost of capital of 10%. What is the project's PI?

What is integrated pest management : An alternate method of pest control is the use of biological (living) agents to control pests. What is the greatest risk in the use of these controls?

Reviews

Write a Review

Required(*) Message

Finance Basics Questions & Answers

Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

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

User Account

All Pages