What if required rate of return is instead Re-calculate NPV

Assignment Help Financial Accounting
Reference no: EM132471971

Problem 1: XYZ is considering a 3-yr project. The initial outlay is -$120,000, annual cash flow is $50,000 and the terminal cash flow is $10,000. The required rate of return (cost of capital) is 15%. The net present value is $736.42.

Question 1: What if the required rate of return is 8% instead? Re-calculate the NPV.

Reference no: EM132471971

Questions Cloud

What is the net present value of the project : Cash flows of $258 in the last year of the project. If the required rate of return on the project is 4%, what is the net present value (NPV) of the project?
How nursing professional can benefit from integrating tenets : Discuss how nursing professionals can benefit from integrating the tenets of servant leadership to empower and influence others as they lead.
Determine what if the annual cash flow increases to instead : Determine What if the annual cash flow increases to $59,000 instead? Re-calculate the NPV. Return (cost of capital) is 15%. The net present value is $736.42.
Define nutritional challenges for emerging populations : Discuss why nutrition is a central component in health promotion. What are some of the nutritional challenges for emerging populations?
What if required rate of return is instead Re-calculate NPV : return (cost of capital) is 15%. The net present value is $736.42. What if the required rate of return is 8% instead? Re-calculate the NPV.
Explain your answer in the context of a natural disaster : What spiritual considerations surrounding a disaster can arise for individuals, communities, and health care providers? Explain your answer in the context.
What is the after-tax salvage value : Equipment is 7-year MACRS property. The firm is selling this equipment today for $10,422. What is the After-tax Salvage Value if the tax rate is 33 percent?
Why psychological and spiritual aspects are important : Explain why psychological, cultural, and spiritual aspects are important to consider for a patient who has been diagnosed with diabetes. Describe how support.
Determine what is the current book value of the equipment : ABC Company purchased a 3-year MACRS property for $52,627 3 years ago. What is the current book value of this equipment?

Reviews

Write a Review

 

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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