What is net present value of project with cash flows

Assignment Help Financial Management
Reference no: EM13938048

What is the net present value of a project with the following cash flows if the discount rate is 15 percent?

Year                                       Cash Flow

0                                             -39,400

1                                              12,800

2                                              21,700

3                                              18,100

Reference no: EM13938048

Questions Cloud

What is the financial break-even quantity : A project has the following estimated data: price = $58 per unit; variable costs = $36 per unit; fixed costs = $20,000; required return = 10 percent; initial investment = $30,000; life = six years. Ignoring the effect of taxes, what is the accounting..
Definition of the function template moventhfront : Write the definition of the function template moveNthFront that takes as a parameter a queue and a positive integer, n.
The company estimates that production and sales : The company estimates that production and sales in 2011 will be 1,550 units. Based on this estimate, forecast income before taxes for 2011.
Make the acquisition attractive at an interest rate : Rent a wreck car rental agency has a contract with PM warranty, Inc. to do major repairs for $700 per car. The car rental agency estimates that it could repair its own cars for $300 each if it acquires a facility for $300000 now. A salvage value of $..
What is net present value of project with cash flows : What is the net present value of a project with the following cash flows if the discount rate is 15 percent?
Discuss whether or not girves should record the liability : Discuss whether or not Girves should record the plant as an asset after it is constructed. Discuss whether or not Girves should record the liability for these revenue bonds.
Hedge the purchase of oil : On March 1 the price of oil is $52 and the July futures price is $51. On June 1 the price of oil is $60 and the July futures price is $58. A company entered into a futures contract on March 1 to hedge the purchase of oil on June 1. It closed out its ..
How does humidity affect a leaf transpiration rate : How does humidity affect a leaf's transpiration rate? How is transpiration affected if the air surrounding a leaf gets warmer, colder, wetter, or drier?
Case study-sullivan ford auto world : Question 1: With reference to the case study, provide one example with a paragraph of not more than 5 lines, which clearly illustrates a link between topics or concepts drawn from at least 2 modules you have studied. (CRM & SWOT)

Reviews

Write a Review

Financial Management Questions & Answers

  About the constant growth valuation

Boehm Incorporated is expected to pay a $2.40 per share dividend at the end of this year (i.e., D1 = $2.40). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, rs, is 14%. What is the value per..

  Write an investment policy statement covering

Gary Lee Weinrib (Mr. W) is a 60 year old divorced musician. He is planning on retiring in the next two years. He will quit touring and recording. What is a potential concern regarding royalty income from a retiring musician that may need to be addre..

  By the capitalization-of-cash flows method

By the capitalization-of-cash flows method, the value of an asset is a function of

  A stock price is currently trading

A stock price is currently trading at $50. Over each of the next two 3-month periods it is expected to go up by 6% or down by 5%. The risk-free interest rate is 5% per annum with continuous compounding. Please Show Your Work. What is the value of a 6..

  Reinvest in its faster-growing snack business

Speculate as to why Kraft chose not to divest its grocery business and use the proceeds either to reinvest in its faster-growing snack business, to buy back its stock, or a combination of the two.

  Concerned with the price the trade crossed

If you needed to trade immediately and were not concerned with the price the trade "crossed" (or traded) at, nor were you particularly concerned with how much the implicit cost of liquidity happened to be, and you were not   concerned with how far pr..

  What annual rate of return is earned

What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?

  Considered difficulty with regards to the CAPM

Which of the following is not considered a difficulty with regards to the CAPM?

  Should the preferred stock include a call provision

The Tsetsekos Company was planning to finance an expansion. The principal executives of the company all agreed that an industrial company such as theirs should finance growth by means of common stock rather than by debt. Should the preferred stock in..

  Assume that due to rapid rate of technological depreciation

Suppose your friend, Pat, approaches you with a plan to get in on the solar panel leasing business. Pat has identified an opportunity to acquire panels sufficient to power 25 homes. Assume that due to the rapid rate of technological depreciation, the..

  What should current rate be on two year treasury securities

One-year Treasury bills currently earn 3.85 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 4.05 percent. The liquidity premium on 2-year securities is 0.10 percent. If the liquidity theory is correct, what sho..

  What is the market rate of return on this stock

The common stock of Eddie's Engines, Inc. sells for $28.41 a share. The stock is expected to pay $3.30 per share next year. Eddie's has established a pattern of increasing their dividends by 5.4 percent annually and expects to continue doing so. What..

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