Net present value-champlain corp

Assignment Help Finance Basics
Reference no: EM132507231

Net present value: Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $3,122,300 and will generate cost savings of $1,345,500 in each of the next five years. The Beta 2100 system costs $3,750,000 and will produce cost savings of $1,125,000 in the first three years and then $2 million for the next two years. If the company's discount rate for similar projects is 14 percent, what is the NPV for the two systems? Which one should be chosen based on the NPV?

Reference no: EM132507231

Questions Cloud

Describe aspects of mrs browns infections : Describe aspects of Mrs Brown's infections, about the CLASSES of antimicrobials she was prescribed - Her condition improves but about a week
Case study religious prayer : You have recently hired a new employee who is skilled and experienced and has a Muslim background.
Determine for papst company for the month of may : Determine for Papst Company for the month of May The gross amount of accounts receivable at the end of the month (after appropriate write-off of uncollectible)
What would be katy did before-tax component cost of debt : KatyDid Clothes has a $150 million (face value) 25-year bond issue selling for 102 percent of par that carries a coupon rate of 11 percent, paid semiannually.
Net present value-champlain corp : Net present value: Champlain Corp. management is investigating two computer systems. The Alpha 8300 costs $3,122,300 and will generate cost savings
Comparing leadership theories : Create a chart comparing at least 3 leadership theories presented in this week's reading.
Calculate budgeted cash disbursements for november : Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $190,000).
Describe the stages of self-concept development : List Erikson's eight stages of self-concept development with their names and ages and tell me how you turned out at each stage.
Contrast the standards of practice for the lpn and rn : Compare and contrast the standards of practice for the LPN and RN. How does understanding the roles of the healthcare team and standards of practice support

Reviews

Write a Review

Finance Basics Questions & Answers

  What is muddy’s degree of operating leverage (dol)

Muddy Murphy's degree of financial leverage (DFL) is 4×. The company knows that if sales are 6 percent higher than forecasted, its EPS will increase by 36 percent. What is Muddy's degree of operating leverage (DOL)?

  The loan will be repaid with a single payment after 5

robert martino plans to borrow 8000 for five years. the loan will be repaid with a single payment after 5 years and

  1 you have just been hired as a financial analyst for basel

1 you have just been hired as a financial analyst for basel industries. unfortunately company headquarters where all of

  Dupont framework

Assume the following: Sales = $400M; Net Income = $60M; TA = $350M; and there is $0.50 in total debt per dollar of total equity. According to the DuPont framework, ROE would be approximately_______?

  What is the present value of myrna winnings

Myrna Loy has just won a lottery. The payout is $76514 a year for 20 years. Myrna will receive the first payment in one year. If the appropriate discount rate.

  Explain the capital asset pricing model

Explain the Capital Asset Pricing Model in terms of a CFO managing his/her investor relations. Prepare a Risk Analysis for Chevron Corp

  What is the maximum exchange ratio

What is the maximum exchange ratio would the A Corporation shareholder accept in taking over X Corporation and remain whole in terms of earnings per share? (note you will need to use the formulas in the book to solve this)

  Differences between cost-based and value-based pricing?

What are the differences between cost-based and value-based pricing?

  What is the current value of the stock

What is the current value of the stock. If you plan to buy today and sell in one year?

  Determine the total stockholders equity

Determine the total stockholders equity after recording these events, if no other transactions impacting the stockholders equity occurred - What is the total amount of dividend paid to shareholders in the current year?

  What is the funds nav

A mutual fund's holdings are determined to be $1,500,000,000 with $250,000,000 in liabilities and 100,000,000 shares outstanding. What is the funds' NAV?

  What is the expected return on the portfolio

You own a portfolio that has $20,000 invested in Albuquerque Mining and $14,000 invested in Oklahoma City Drilling. The expected returns on these stocks are 12.5 percent and 9 percent, respectively. What is the expected return on the portfolio?

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