What is NPV-Oxygen Optimization would compute for project

Assignment Help Financial Management

Reference no: EM131926971

A number of companies, including Litchfield Design and Oxygen Optimization, are considering undertaking project A, which is believed by all to have a level of risk that is equal to that of the average-risk project at Litchfield Design. Project A is a project that would require an initial investment of 5,704 dollars and then produce an expected cash flow of 14,977 dollars in 8 years. Project A has an internal rate of return of 12.825 percent. The weighted-average cost of capital for Litchfield Design is 11.39 percent and the weighted-average cost of capital for Oxygen Optimization is 12.49 percent. What is the NPV that Oxygen Optimization would compute for project A?

Reference no: EM131926971

Questions Cloud

Find the final amount in the account : which the rate of return on the account and regular contribution change over time. ?$1000 per quarter invested at 4.9%. Find the final amount in the account?

What would be annualized cos of the hydroelectric dam : What would be the annualized cos of the hydroelectric dam, if the life of the dam is expected to last indefinitely? Assume the marr is 10% per year.

What is The NPV of project plus the NPV of project : Fairfax Pizza has weighted-average cost of capital of 9.16 percent and is evaluating two projects. What is The NPV of project A plus the NPV of project B?

What are your worst-case and best-case NPVs for project : The engineering department’s net working capital estimate is accurate only to within ±5 percent. What are your worst-case and best-case NPVs for this project?

What is NPV-Oxygen Optimization would compute for project : What is the NPV that Oxygen Optimization would compute for project A?

Currently hold market index portfolio : If you currently hold a market index portfolio, what would be the alpha for Portfolios A and B?

The effect of taxes on various break-even measures : This problem concerns the effect of taxes on the various break-even measures.

Companies that meet the goals set forth in the readings : Think of and identify one, or two, companies that meet the goals set forth in the readings. How do they meet these goals?

What are the firm current capital structure weights : Assume the firm also has 8,000 bonds outstanding, and they are selling at 95 percent of par. What are the firm's current capital structure weights?

User Account

All Pages