Present values of the relevant investment cash flows

Assignment Help Financial Management
Reference no: EM131899364

Healthy Potions, Inc., is considering investing in a new production line for eye drops. Other than investing in the equipment, the company needs to increase its cash and cash equivalents by $10,000, increase the level of inventory by $35,000, increase accounts receivable by $25,000, and increase accounts payable by $5,000 at the beginning of the project. Healthy Potions will recover these changes in working capital at the end of the project 13 years later. Assume the appropriate discount rate is 15.0 percent. What are the present values of the relevant investment cash flows? (Round answer to 2 decimal places, e.g. 15.25.)

Present Value: $___________

Reference no: EM131899364

Questions Cloud

What is the change in momentum : What is the change in momentum? What is the impulse?What is the average force on the wall during the crash?
What are the futurist projection for the use of smart cards : Explain how smart cards can reduce fraud and streamline administrative procedures. What are the futurist projection for the use of smart cards in 5 to 10 years?
Constant acceleration a reasonable approximation : If your answer is "no", is assuming a constant acceleration a reasonable approximation? Explain.
The importance of maintaining accurate employee recods : Provide an example of formal and an example of informal documentation that would normally be maintained in an employee file.
Present values of the relevant investment cash flows : What are the present values of the relevant investment cash flows?
How does society view millenniums : Using the concepts of Social Perception & Values & Attitudes how does society view millenniums and what are the implication's for this generation.
What is the magnitude of the electrostatic force : What is the magnitude of the electrostatic force between the 6.4 mC charge and the -9.6 mC charge.
Use the darcy-weisbach equation to estimate friction losses : CIVE 3833 Pipe Network Computing Assignment. Use the Darcy-Weisbach Equation to estimate friction losses. Report for pipe flex tables showing pipe flow rates
Discuss remark in the context of concepts described : Discuss this remark in the context of the concepts described in the chapter.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the average annual growth in dividends

Suppose the dividends of a company are $2 in one year and $3 three years following. What is the average annual growth in dividends over these three years?

  What is the rate of return if bond is held until maturity

A bond has a face value of $1,000, is redeemable in eight years, and pays interest of $100 at the end of each of the eight years. If the bond can be purchased for $981, what is the rate of return if the bond is held until maturity?

  Compute the total current value of the company amazon

Compute the total current value of the company Amazon and its implied stock value.

  The value of a country currency may increase by

Buchanan Corp. is refunding $10 million worth of 10% debt. The new bonds will be issued for 8%. The corporation's tax rate is 35%. The call premium is 9%. What is the net cost of the call premium? The value of a country's currency may increase by

  Determine how much money you will have

Determine how much money you will have if you currently have nothing saved and you deposit $500 annually for the next 20 years at a 10% rate of return and a 28% marginal tax rate.

  What is the estimated amount of purchases for quarter

Abbott & Costello has the following estimated sales: first quarter $8,100, second quarter $8,600, third quarter $9,500 & fourth quarter $11,200. Purchases are equal to 75 percent of the following quarter's sales. What is the estimated amount of purch..

  What would be the payment on the principal for the payment

what would be the payment on the principal for the payment at the end of the seventh payment on a 15 year mortgage?

  What is the most you should pay for the annuity

You have a chance to buy an annuity that pays $15,500 at the end of each year for 3 years. You could earn 4.5% on your money in other investments with equal risk. What is the most you should pay for the annuity?

  How much will your collection be worth when you retire

how much will your collection be worth when you retire in 2058, assuming they appreciate at an annual rate of 6.1 percent?

  Unit price structure is similar to a fixed price structure

The Unit Price structure is similar to a Fixed Price structure. The difference is the "unit" is typically as small item, but the cost is fixed per unit. Can anyone provide good examples of when a Unit Price structure is used?

  Such as life cycle-structure-competition-business cycle

Discuss the concepts of Industry Analysis (such as life cycle, structure, competition, business cycle) as they apply when you analyze and report on the prospects of a potential firm.

  What is the modified internal rate of return of project

DYI Construction Co. is considering a new inventory system that will cost $750,000. What is the modified internal rate of return of this project?

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