Net present value when evaluating projects

Assignment Help Financial Management

Reference no: EM131537283

Green Landscaping, Inc. is using net present value (NPV) when evaluating projects. Green Landscaping’s cost of capital is 12.02 percent. What is the NPV of a project if the initial costs are $1,354,920 and the project life is estimated as 7 years? The project will produce the same after-tax cash inflows of $467,458 per year at the end of the year.

Round the answer to two decimal places.

Reference no: EM131537283

Questions Cloud

Future of the united states stock markets : Please discuss the signs that you see for the future of The United States stock markets for the next decade.

Calculate the total amount the company : Calculate the total amount the company will raise from the right issue. Calculate the theoretical ex-rights price per share immediately after the rights issue.

How many accounts are kept for the investment of all owners : Under what major chart of accounts division are the owners' equity accounts for a corporation normally listed?

Leverage of options : How can financial institutions with stock portfolios use stock options when they expect stock prices to rise substantially but do not yet have sufficient funds.

Net present value when evaluating projects : Green Landscaping, Inc. is using net present value (NPV) when evaluating projects.

Key financial management team for company : The company's CEO is now looking to expand its operations by investing in new property, plant, and equipment.

Explain the mean of the term budget : Mention the word "budget" to most people and many negative thoughts come to mind. However, a budget does not have to be restrictive or inflexible.

Analyze the events that led to the defeat of the treaty : Analyze the events that led to the defeat of the Treaty of Versailles. What effect did this have on America's role in the world during the 1920s and 1930s?

What was flotation cost as percentage of funds raised : The Collins Co. has just gone public. Under a firm commitment agreement, What was the flotation cost as a percentage of funds raised?

User Account

All Pages