What is NPV using the discounted cash flow technique

Assignment Help Operation Management
Reference no: EM13990937

Use the following information to answer the questions below.

Projected inflows:

Year 1- $10,000;

Year 2- $9,000;

Year 3-$17,000.

The cost of capital is 10% and the initial investment is $27,750.

a. What is NPV using the discounted cash flow technique?

b. Should you recommend this project to the selection committee? Why or why not?

Reference no: EM13990937

Questions Cloud

Prepare contribution format segmented income statements : Prepare contribution format segmented income statements for the total company broken down between sales territories. (Round the percentage answers to one decimal place.
Internal control and risk enterprise management : Strategic risk can be divided into seven major classes: industry, technology, brand, competitor, customer, project, and stagnation. Choose a company that you would like to research, and consider their strategic risk management of one of the seven maj..
Leave at reduced rate of pay-unemployment compensation law : A computer company experienced a slowdown at work, and allowed a computer engineer to go on leave at a reduced rate of pay, rather than being terminated. The reduced rate of pay would be about $12 per hour. This is not permissible under any circumsta..
Is the inflation rate the same each year : The index number representing the price level changes from 100 to 105 in one year, and then from 105 to 110 the next year. Since the index number increases by 5 each year, is 5 the inflation rate each year? Is the inflation rate the same each ye..
What is NPV using the discounted cash flow technique : The cost of capital is 10% and the initial investment is $27,750. What is NPV using the discounted cash flow technique? Should you recommend this project to the selection committee? Why or why not?
Successfully claim age discrimination under federal law : Bob, age 38, was fired without any reason given by the employer, and his position was filled by someone hired a week later. Can Bob successfully claim age discrimination under federal law?
The labor relations process : Refer to case studies 1.1 and 3.4 What challenges do you see with interpreting labor and employment laws and court decisions?
Firefighter with the city fire department : Mary applied to be a firefighter with the city fire department. Her application was refused because the city had a policy of only hiring males as firefighters. This type of discrimination is _______.
What are some examples of strategic supply chain decisions : What are some examples of strategic supply chain decisions (include operations management decisions)? How might these decisions vary across companies pursuing different strategies?

Reviews

Write a Review

Operation Management Questions & Answers

  Hand inventory would be negative without production

Prepare a master schedule given this information: It is now the end of week 1; customer orders are 25 for week 2, 16 for week 3, 11 for week 4, 8 for week 5, and 3 for week 6. Use the MPS rule of ordering production when projected on-hand inventory w..

  A linear programming problem

A linear programming problem has two constraints X + 2Y

  Case study on coleen colombo

The case study (Coleen Colombo and Colleagues Resist Mortgage Fraud) will include a Synopsis and three Findings of Fact. Each Finding of Fact will require a justified recommended solution. Students should support their recommended solutions with ra..

  Which of the given is the total requirement uby sing an mrp

which of the following is the net requirement using an mrp program if the gross requirement is 10000 and the inventory

  Explain straight-line method of depreciation

Approximately one year later, the hospital is approached by Harmon Technology salesperson, Jane Black, who indicated that purchasing the scanner in 2011 from Faital Inc. was a mistake.

  Firm that is implementing the multidomestic strategy

Identify a firm that is implementing the multidomestic strategy. What organizational structure is being used in each firm?

  Mms associates is a telecommunications service provider

MMS Associates is a telecommunications service provider. The company is currently redesigning its main office to accommodate six newly hired salespeople. Some of the salespeople are expected to work in teams,

  What order size would you recommend

A manager just received a new price list from a supplier. It will now cost $1.00 a box for order quantities of 801 or more boxes, $1.10 a box for 200 to 800 boxes, What order size would you recommend

  Explain why your report will work

Pretentious your budget is zero, provide a justification of Explain why your report will work. Within your explanation, Classify expected benefits also types of costs

  What is the key branding strategy behind the success

What is the key branding strategy behind the success of Southwes Airlinies 2011 ? How do they operationalize that strategy through the key policies, procedures, operating practices, and core values?

  Determining its assembly schedule

A local high-tech company is determining its assembly schedule for the next 6 months. Assembly cost per drone is $100. In addition, if drones are to be assembled, there is a setup cost of $12,000 per month. At the end of each month, there is a holdin..

  Corruption and bribery are common in some countries

Would you avoid locating in such a country, or locate there and deal with it? If the latter, how would you deal with it?

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