What is project net present value if required rate of return

Assignment Help Financial Management
Reference no: EM13938041

A project is expected to create operating cash flows of $29,500 a year for three years. The initial cost of the fixed assets is $61,000. These assets will be worthless at the end of the project. An additional $4,500 of net working capital will be required throughout the life of the project. What is the project's net present value if the required rate of return is 12 percent?

$13,057.03

$8,557.03

$2,250.00

$5,354.02

$4,057.03

Reference no: EM13938041

Questions Cloud

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)
Write the definition of the function template : Add the operation queueCount to the class queueType (the array implementation of queues), which returns the number of elements in the queue
What ways which plants partnership to aid in nutrient uptake : What are some ways in which plants use partnerships to aid in nutrient uptake? What are some ways in which plants rely on these partnerships for survival and growth? Do you think such reliance is effective? Why or why not?
What is project net present value if required rate of return : A project is expected to create operating cash flows of $29,500 a year for three years. The initial cost of the fixed assets is $61,000. These assets will be worthless at the end of the project. An additional $4,500 of net working capital will be req..
All-ireland football championship : Write a short paragraph explaining how Eigenvectors can be used to rank websites. 2. Devise a ranking system for an All-Ireland Football Championship where each of the team plays 8 games ( 4 from teams inside their own province) that produces 4 pr..
Maintain planar motion : Describe how the mechanism is designed in order to maintain planar motion.
Prepare the current liabilities and long-term debt portions : Prepare the current liabilities and long-term debt portions of Craig's balance sheet at December 31, 2008. Provide a separate line item for each issue, but some items may need to be split into more than one item.
What is the sale price at kitchen hut : On August 8, 2014, Leon’s Kitchen Hut bought a set of pots with a $136 list price from Lambert Manufacturing. Leon’s receives a 30% trade discount. Terms of the sale were 2/10, n/30. On August 14, Leon’s sent a check to Lambert for the pots. What is ..

Reviews

Write a Review

Financial Management Questions & Answers

  Premium bond making annual payments

Bond X is a premium bond making annual payments. The bond has a coupon rate of 9 percent, a YTM of 7 percent, and has 13 years to maturity. Bond Y is a discount bond making annual payments. This bond has a coupon rate of 7 percent, a YTM of 9 percent..

  Net present value of a project with a net investment

Calculate the net present value of a project with a net investment of $20,000 for equipment and an additional net working capital investment of $5,000 at time 0. The project is expected to generate net cash flows of $7,000 per year over a 10 year est..

  What is the third-party-payer system in your organization

What is the third-party-payer system in your organization? How does this system impact your organization?

  Efficient market hypothesis-is the stock market efficient

The finance industry is in the midst of a transformative period of evolution, and financial economists have a huge agenda to tackle. Capital Marketing Theory and the Efficient Market Hypothesis are two common concepts used to describe the relationshi..

  Calculate accumulated depreciation

Genetic Insights Co. purchases an asset for $15,884. This asset qualifies as a seven-year recovery asset under MACRS. The seven-year fixed depreciation percentages for years 1, 2, 3, 4, 5, and 6 are 14.29%, 24.49%, 17.49%, 12.49%, 8.93%, and 8.93%, r..

  What is the minimum number of shares

The shareholders of the Pickwick Paper Company need to elect eight directors. There are 200,000 shares outstanding. What is the minimum number of shares you need to own to ensure that you can elect at least one director if the company has majority vo..

  What is belyks operating cash flow

During the year, Belyk Paving Co. had sales of $2,394,000. Cost of goods sold, administrative and selling expenses, and depreciation expense were $1,431,000, $435,600, and $490,600, respectively. In addition, the company had an interest expense of $2..

  Excess short-term cash in particular money market investment

The treasurer of a large corporation wants to invest $45 million in excess short-term cash in a particular money market investment. The prospectus quotes the instrument at a true yield of 3.65 percent; that is, the EAR for this investment is 3.65 per..

  Assume a market index represents the common factor

Assume a market index represents the common factor and all stocks in the economy have a beta of 1. Firm-specific returns all have a standard deviation of 47%. Suppose an analyst studies 20 stocks and finds that one-half have an alpha of 4.5%, and one..

  Which is better current ration

which is better current ration? is it possible to run a company with a negative cash flow for: what is the future value of :

  Number of shares outstanding-price per share after split

A company has just announced a 3-for-1 stock split, effective immediately. Prior to the split, the company had a market value of $5 billion with 100 million shares outstanding. What is the value of the company, the number of shares outstanding, and p..

  Weight of debt and common equity by the current market value

Compute the weighted-average cost of capital (WACC) for the chosen firm on your spreadsheet. Take this number out to the nearest hundredth of a percent (e.g. 33.33%). There is no preferred stock in the company. Determine the weight of debt and common..

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