Should it be accepted or rejected using a 15% discount rate

Assignment Help Finance Basics
Reference no: EM13296293

Quark industries has a project with the following cash flows:

Cash flow year 1: $25,000
Cash flow year 2: $75,000
Cash flow year 3: $150,000
Cash flow year 4: $150,000

a. Using a 10% discount rate for this project and the NVP model, determine whether this project should be accepted or rejected.

b. Should it be accepted or rejected using a 15% discount rate?

c. Should it be accepted or rejected using a 20% discount rate?

 

Reference no: EM13296293

Questions Cloud

Determine the terminal velocity of the block of cube : A fluid film 0.1 mm thick separates solid and surface. The fluid viscosity is 0.04 N*sec/m^2. Assuming the velocity distribution in the film is linear, find the terminal velocity of the block. The area of the cube in contact with the film is 0.25 ..
Find the work done by this force on the truck : The brakes of a truck cause it to slow down by applying a retarding force of 4520 N to the truck over a distance of 1150 m
Briefly trace its development from a sole proprietorship : Imagine a startup company of your own and briefly trace its development from a sole proprietorship to a major corporation with a focus on how that development would be financed.
What is the magnitude of the force s if the angle is given : A pile resists the tension developed by three stay cables for a major tent (Membrane) Structure. Assuming no bending is desired in the pile (no resultant horizontal component), what is the magnitude of the force S if the angle \thetaS = 30 degrees
Should it be accepted or rejected using a 15% discount rate : Using a 10% discount rate for this project and the NVP model, determine whether this project should be accepted or rejected.
Find the electric potential at the center of a hollow metal : What is the electric potential at the center of a hollow metal sphere of outside diameter 14. cm which holds a net charge of 3.3 muC
Explain how to compute the disclosure and elevation of a : Reciprocal leveling gives the following readings in feet from a setup near A: on A, 2.071; on B, 8.254, 8.259 and 8.257. At the setup near B: on B, 9.112; on A, 2.926, 2.930 and 2.927. The elevation of B is 1099.600. Compute the disclosure and ele..
Explain what is the structure of the unknown compound : An unknown had the chemical formula C4H10O. It showed a positive chromic acid test, a positive lucas test in 5 minutes, and a positive iodoform test. What is the structure of the unknown compound
Advise the shareholders how the payments in note : Advise the shareholders how the payments in Note (xiv) will be treated for tax purposes and the write-down of share investments is consistent with the accounting policy of valuing investments at market value.

Reviews

Write a Review

Finance Basics Questions & Answers

  What would the loan balance be in 7 years

Say that purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. If you get a 15 year mortgage with a 6% interest rate, what would the loan balance be in 7 years?

  Ratio computation and analysis

As loan analyst for Madison Bank, you have been presented the following data. Eachof these corporations has requested a loan of $50,000 for 6 months with no collateral offered.

  Calculate covariance and correlation between returns

Mr. Henry can invest in Highbull stock and Slowbear stock. His projection of the returns on these two stocks is as follows:

  Explain determining cost of equity and weighted average cost

Explain Determining cost of equity and weighted average cost of capital and after-tax WACC for both firms

  Calculate the npv of the assembler

ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 12%. (Round your answer to the nearest $1.)

  What is your maximum potential financial loss

When purchasing an option, what is your maximum potential financial loss?

  Determine the maximum price of stock

As an shareholder you have a required rate of return of 14% for investments in risky stocks. You have analyzed three risky firms and must decide which to purchase.

  What is the value of limited brands stock

What is the value of Limited Brands stock when the required return is 12.5 percent? (Round your answer to 2 decimal places.)

  How many fund shares will you receive

You wish to invest $17,445 in a mutual fund with a NAV of $26.03. The fund charges a front-end load of 4.50%. How many fund shares will you receive?

  Prepare the journal entry that wood-mode should make

Prepare the journal entry that Wood-Mode should make, assuming it signed a valid sales contract to sell the counters and received at the time of sale the $413,000 payment.

  Calculating total cost

Neil Corporation uses a job order cost system and has established a predetermined overhead application rate for the current year of 150 percent,

  How long will they take to triple their sales

Elegant designers have generated sales of $625,000 for the current year. If they can grow their sales at a rate of 12% every year, how long will they take to triple their sales?

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