The fixed asset is fully depreciated over the life of the

Assignment Help Finance Basics
Reference no: EM13569475

A five-year project has an initial fixed asset investment of $295,000, an initial NWC investment of $27,000, and an annual OCF of ?$26,000. The fixed asset is fully depreciated over the life of the project and has no salvage value. If the required return is 12 percent, what is this project's equivalent annual cost, or EAC?

Reference no: EM13569475

Questions Cloud

What is the present value of 750 per year for 50 years : what is the present value of 750 per year for 50 years first cash flow occurs one year from today given an interest
All expenses of the maestro and the classical music : selected accounts of the weinstein musical society a nongovernment not-for-profit organization for the year ended
Fifteen years ago john set aside 100000 in case of a : fifteen years ago john set aside 100000 in case of a financial emergency. today that account has increased in value to
Please give an example of a behavior other than those in : please give an example of a behavior other than those in the text that might be deemed normal in one cultural but
The fixed asset is fully depreciated over the life of the : a five-year project has an initial fixed asset investment of 295000 an initial nwc investment of 27000 and an annual
The one-year interest rate is 5 the two-year rate is 6 : the one-year interest rate is 5 the two-year rate is 6. using the pure expectations theory what is the implied forward
How much tax can be saved if john shifts 1900 of income to : how much tax can be saved if john shifts 1900 of income to his 18 year old dependent son? john is in the 25 percent tax
Further assume that todays required rate of return on : assume that whirledcom has an issue of 15-year 1000 par value bonds that pay 6 interest semi annually. further assume
Xavier industries common stock sells for 4750 xavier : xavier industries common stock sells for 47.50. xavier recently paid a 2.25 dividend to its common shareholders. the

Reviews

Write a Review

Finance Basics Questions & Answers

  On january 1 2008 a company agrees to pay 20000 in three

on january 1 2008 a company agrees to pay 20000 in three years. if the annual interest rate is 10 determine how much

  Calculation of npv of lease payments

Calculation of NPV of lease payments and capital contribution decision to the lease project proposed and Why did you select the cash flow level and the discount rate that you used

  Find the npv and pi of a project

Find the NPV and PI of a project that costs $1,500 and returns $800 in year one and $850 in year two. Assume the project's cost of capital is 8 percent.

  What is the value per share of your firms stock

After that period, growth should match the 6 percent industry average rate. The last dividend paid (D0) was $1. What is the value per share of your firm's stock?

  Explain why financial statements are important to the

explain why financial statements are important to the decision-making process in financial analysis. also identify and

  Distinguish between forward contracts, futures

Distinguish between forward contracts, futures, options, caps, collars and swaps as currency risk management tools.

  For this discussion identify the appropriate application of

for this discussion identify the appropriate application of standardized scores to reflect on their benefits and to

  Find the resale value of the equipment

Find the resale value of the equipment after six years just to break even.

  Calculate the mirr of project using reinvestment approach

Calculate the MIRR of the project using the reinvestment approach method. Calculate the MIRR of the project using the combination approach method.

  An investment will pay you 75000 in six years if the

an investment will pay you 75000 in six years. if the appropriate discount rate is 12 percent compounded daily what is

  What is the projected inventory turnover ratio for year

Fairchild Garden Supply expects $600 million of sales this year, and it forecasts a 15% increase for next year. The CFO uses this equation to forecast inventory requirements at different levels of sales.

  What is the amount of the first interest payment

Amount issued $420 million Offered Issued at a price of 102.00% plus accrued interest (proceeds to company 101.790%) through First Boston Corporation.

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