Required rate on the project

Assignment Help Financial Management

Reference no: EM13923842

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2351120 in annual sales, with costs of $908324. If the tax rate is 19 percent, and the required rate on the project is 10 percent, what is the project's NPV?

Reference no: EM13923842

Questions Cloud

What is the price to earnings ratio : The following information is available for the Oil Creek Corporation. Accounts receivable $19,000. Sales $195,000. Current assets $36,000. Total assets $147,000. Debt $90,000. Long term debt $48,000. Current liabilities $41,000. Profit margin 6% Numb..

Carlquist company makes and sells a product : The Carlquist Company makes and sells a product called Product K. Each unit of Product K sells for $32 dollars and has a unit variable cost of $26

Highest level of employee involvement : (blank) is the tendency to experience stronger negative emotions when losing something of value than the positive emotions experienced when gaining something of equal value. Which of the following decisionmaking activities tends to make the most u..

Goals of juvenile confinement-special populations : Goals of Juvenile Confinement. In the Final Paper, you must address the issue of treatment versus punishment.This discussion is designed to help everyone with this debate that shapes juvenile justice in every state. There are many thoughts that cro..

Required rate on the project : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be wort..

Perform poorer than lowcohesion teams : Highcohesion teams perform poorer than lowcohesion teams when Which of the following are two features that distinguish virtual teams from conventional teams

Did the program increase store traffic? : They want to determine whether the program increases the mean traffic.

What is meant by the term sales mix : What is meant by the term sales mix? What assumption is usually made concerning sales mix in CVP analysis?

What are main active bond portfolio management strategies : What are the main active bond portfolio management strategies? How do active bond portfolio strategies differ from one another in terms of scope, scalability, and risk-adjusted return potential?

User Account

All Pages