What is the net present value and internal rate of return

Assignment Help Financial Accounting
Reference no: EM132567539

Question 1: The Phillips Corporation which has 50% tax rate and a 10% after-tax cost of capital, is evaluating a project which will cost Rs. 1,00,000 and will require an increase in the level of inventories and receivables of Rs. 50,000 over its life. The project will generate additional sales of Rs. 1,00,000 and will require cash expenses of Rs. 30,000 in each year of its 5 year life; it will be depreciated on a straight-lined basis. What is the net present value and internal rate of return for the project?

Reference no: EM132567539

Questions Cloud

What must be the potential difference between a and b : If the charge was started from rest and had 4.66×10-4 J of kinetic energy when it reached point B, what must be the potential difference between A and B?
Comparing bank statement and accompanying canceled check : Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the reconciling items
Find what price should she be willing to pay for the stock : Find What price should she be willing to pay for the stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Special education-access to individualized curriculum : What is meant by access to inclusive environments? Access to individualized curriculum? What is meant by access to purposeful instruction?
What is the net present value and internal rate of return : The Phillips Corporation which has 50% tax rate and a 10%. What is the net present value and internal rate of return for the project?
Describe the impact of big data on simulation modelling : Write a 7-page research paper (cover and reference page inclusive) on the topic "Impact of Big Data on Simulation Modelling in the Era of Informatics."
What gordon divident capitalization model is : If the firm reinvests it's retained earnings at the rate of 14% the cost of its equity according to Gordon divident capitalization model is
Develop a brief computer and internet security policy : You have been hired as the CSO (Chief Security Officer) for an organization. Your job is to develop a very brief computer and internet security policy.
How to estimate what is the cost of debt : The net amount realized per debuntures is Rs. 54, and they are redeemable at par after 6 years. At a corporate tax rate of 40%. What is the cost of debt?

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