Law firm is contemplating unorthodox project

Assignment Help Financial Accounting

Reference no: EM131337210

A law firm is contemplating an unorthodox project of the selling of a machine today that will result in an immediate inflow of $450. Without the use of the machine the law firm will incur an annuity of outflows of $73 per year that begin at the end of year one, and continue for 6 consecutive years. The required rate of return is 7.60%. What is the project's net present value (NPV)? Use four decimal points

Reference no: EM131337210

Questions Cloud

Develop a plan to teach employees to use the new technology : Develop a plan to teach employees to use the new technology. Determine how employees of your selected business or organization will learn about the technology that will be implemented and taught to them.

What is your favorite brand of sandwich cookie : What is your favorite brand of sandwich cookie? If you are like most Americans, chances are it is Oreo. In fact, Oreos are so popular that many people think Oreo was the original sandwich cookie. But they are wrong. Sunshine first marketed its Hyd..

What is probability that year 1 net cash flows will negative : The expected net cash flow for year 1 is $50,000.- What is the probability that year 1 net cash flows will be negative?

What is the machine net present value : What is the machine's net present value? (Round present value factor calculations to 4 decimal places, e.g. 1.2512 and final answer to 0 decimal places e.g. 58,971.)

Law firm is contemplating unorthodox project : A law firm is contemplating an unorthodox project of the selling of a machine today that will result in an immediate inflow of $450. Without the use of the machine the law firm will incur an annuity of outflows of $73 per year that begin at the end o..

Analyze the key opportunities and threats : We are focusing on SWOT. In order to complete a SWOT, we are required to identify and analyze the key opportunities and threats in the external environment. Then, we need to identify and analyze the company's key strengths and weaknesses (intern..

What is chance that the project will have a positive npv : The Carthage Sceptre Corporation is evaluating a possible investment.- What is the chance that this project will have a positive NPV at least equal to $1,000,000?

Target markets served by the business : Cover the history of the business, the nature of the business, the main target markets served by the business, the objectives set for the next five years, the original vision and mission set for the new venture by the entrepreneur. Use analytical ..

Discuss benefits and drawbacks of using database marketing : MHA626- Describe your understanding of database marketing and how it could potentially be applied to your marketing plan for the Final Project. Discuss the benefits and drawbacks of using database marketing.

User Account

All Pages