Proposed nuclear power plant

Assignment Help Financial Management

Reference no: EM131908774

A proposed nuclear power plant will cost $2.4 billion to build and then will produce cash flows of $320 million a year for 15 years. After that period (in year 15), it must be decommissioned at a cost of $920 million. What is project NPV if the discount rate is 3%? What if it is 16%? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in billions rounded to 3 decimal places.) Discount Rate NPV 3% $ billion 16% billion.

Reference no: EM131908774

Questions Cloud

What is the company new break-even point in units : Based on the above information, what is the break-even point in units? Based on these two developments, what is the company’s new break-even point in units?

What is sammy casualty loss deduction : Assuming that Sammy's AGI was $115,000 this year, what is Sammy's casualty loss deduction?

Land improvements for the level lots : What type of financing was likely used to do land improvements for the level lots that contain utility hook-ups?

Book talks about several techniques for evaluating projects : What is capital budgeting? Your text book talks about several techniques for evaluating projects

Proposed nuclear power plant : A proposed nuclear power plant will cost $2.4 billion to build and then will produce cash flows of $320 million a year for 15 years.

Calculate eps for oak farms : Calculate EPS for Oak Farms. Compute Oak Farms EPS after the partition.

Treasury offers to sell bond : Suppose the US treasury offers to sell you a bond for $3000. What annual interest rate would you earn if you bought this bond at the offer price?

Draw time line to show the cash flows of project : Draw a time line to show the cash flows of the project.

Difference between merger and consolidation : What is the difference between a merger and a consolidation?

User Account

All Pages