The working capital will be released for use elsewhere at

Assignment Help Finance Basics
Reference no: EM13567265

The following data concern an investment  project:

Investment in equipment

$10,000

Net annual cash inflows

$2,400

Working capital required

$5,000

Salvage value of the equipment

$1,000

Life of the project

8 years

Required rate of return

10%

The working capital will be released for use elsewhere at the conclusion of the project.

Required:

Compute the project"s net present value.

Reference no: EM13567265

Questions Cloud

On the basis of your statement in part 1 draft a brief memo : pooria corp just completed another successful year as indicated by the following income.nbspnbspnbspnbspnbsp for the
Bakery has annual fixed costs of 880000 annd a variable : bakery has annual fixed costs of 880000 annd a variable cost per pie of 7.50. each pie sells for 15.50 the bakery
Buckle company produces three joint products from seaweed : buckle company produces three joint products from seaweed. at the split-off point three basic products emerge sea tea
Company uses large amounts of debt financing in an industry : company uses large amounts of debt financing in an industry that has a high degree of business risk. what kind of eps
The working capital will be released for use elsewhere at : the following data concern an investmentnbsp projectinvestment in equipment10000net annual cash inflows2400working
What is the weighted average cost of capital for a : what is the weighted average cost of capital for a corporation that finances an expansion project using 30 retained
Regression how do i examine correlations of all variables 1 : how do i examine correlations of all variables 1 dv amp 5 iv and summarize their relationship? ltbrgti also want to
When computing the net present value of the project what is : whitsitt inc. has provided the following data to be used in evaluating a proposed investment projectinitial
Svens cookhouse is a popular restaurant located on lake : svens cookhouse is a popular restaurant located on lake union in seattle. the owner of the restaurant has been trying

Reviews

Write a Review

Finance Basics Questions & Answers

  Training for foreign assignment

From a diversity standpoint, what do you need to know about your targeted learners and the training requirements needed prior to taking an assignment in a foreign country.

  Calculate the present value of the salary

Suppose today is August 1, 2006. Charles is thirty years old and has a Bachelor of Science degree in computer science. He is currently employed as a Tier 1 field service representative for a telephone corporation and earns $38,000 a year that he anti..

  A bond which matures in 14 years has 100000 par value the

a bond that matures in 14 years has a 1000.00 par value. the annual coupon rate is 9 and the markets required yield to

  Determine the real risk-free interest rate

The central bank reduce the discount to rise the nation's monetary base. The nation has highly mobile international capital markets and a fixed exchange rate system.

  What is the amount of the collection float

Every day, the firm mails out checks totaling $4,400 that generally take 3 days to clear the bank. What is the amount of the collection float.

  What is the current value of one share of this stock

The company just paid its annual dividend in the amount of $1.50 per share. What is the current value of one share of this stock if the required rate of return is 7.00 percent?

  Computation of net cash flow

Computation of net cash flow and An analyst has collected the following information for Gilligan Grocers

  An effective way for firms to improve the liquidity

ADRs are considered an effective way for firms to improve the liquidity of their stock.

  Using the date in the excel file home market value develop

1 call center typically have high turnover. the director of human resources for a large bank has compiled data on about

  What is free cash flow if you were an investor why might

what is free cash flow? if you were an investor why might you be more interested in free cash flow than net

  Calculate the dollar cost of each of the proposed plans

If the firm had made a purchase of $100,000 for which it had been given terms of 2/10 net 30, would it increase the firm's profitability to give up the discount and not borrow as recommended in part b? Why or why not?

  Compute the specialty products total estimated cost per

the management accountant at melrose inc. provided the following estimated costs for producing 5000 units of a

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