What is npv assuming general inflation rate of eight percent

Assignment Help Financial Accounting
Reference no: EM132983796

A firm is considering a project with a cash flow outlay of 1,000$ now and 5 annual inflows of 500$

Problem a) What is the NPV (net present value) at 10%. What is the NPV at other discount rates?

Problem b) What is the NPV assuming a general inflation rate of 8% and an increase in cash flow to $510 per year?

Reference no: EM132983796

Questions Cloud

What steps should an employee take to ensure security : When making payments electronically, list three internal controls that should be in place to ensure safety and security in the payment process
Journalize for harper and co. each of the transaction : Journalize for Harper and Co. each of the following transactions or state no entry required and explain why. Be sure to follow proper journal writing
What was the equivalent future amount in year five : The annual operating costs at an iron ore processing plant have been 170000 for the last 5 years.What was equivalent future amount in year 5 of operating costs?
Was struggling in the current economic environment : Had it abandoned its policy of prudence? Was it not aware that even its closest competitor, Cathay Pacific, was struggling in the current economic environment
What is npv assuming general inflation rate of eight percent : What is the NPV (net present value) at 10%. What is the NPV assuming a general inflation rate of 8% and an increase in cash flow to $510 per year?
Find different job positions in various departments : You have named as Human Resource Manager for a company, having 180 employees at different job positions in various departments.
Discuss the key challenges that the healthcare system : In the early 1950s, the American College of Physicians, the American Hospital Association, the American Medical Association, and the American College of Surgeon
Prepare a vertical analysis of balance sheet data for nike : Prepare a vertical analysis of the balance sheet data for Nike for 2020. Prepare a horizontal analysis of the balance sheet data for Nike, using 2019 as a base.
What factors make a quality job description : 1) What factors make a quality job description? Why?

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