What is the net present value of a project

Assignment Help Finance Basics
Reference no: EM13261033

What is the net present value of a project with the following cash flows if the required rate of return is 12 percent?

Year Cash Flow

0 -$42,398
1 $13,407
2 $21,219
3 $17,800

 

Reference no: EM13261033

Questions Cloud

What percentage of the firms capital funding should be debt : The pretax cost of debt is 6.7 percent and the cost of common stock is 10.4 percent. What percentage of the firm's capital funding should be debt financing if its tax rate is 30 percent?
Calculate the density of the rock : A small piece of rock is weighed in air and then weighed while immersed in oil of density 800 kg/m3. If the weight in air is 21.5 N and the weight in the oil is 11.8 N, calculate the density of the rock
How companys health and wellness programs add value : How did the company's health and wellness programs add value and evaluate the company's approach to selecting and designing a health plan, and pharmacy benefits.
Explain why the instant applied voltage is interrupted : An electronic timer consists of a resistor whose value is 10,000 ohms, a capacitor of 30 pico farads, and a 10 volt source which is applied across the RC connection at time t =0.
What is the net present value of a project : What is the net present value of a project with the following cash flows if the required rate of return is 12 percent?
What is the change in length of the steel : A 100 meter length of steel changes temperature by 30 C during the course of a day. If the coeffcient of thermal expansion of steel is 12 parts per million per C, what is the change in length of the steel
What is the maximum initial investment : What is the maximum initial investment for which this project is acceptable if the pre-tax required return on debt is 8% and the required return on equity is 18%?
What is the variance of these returns : Over the past five years, a stock returned 8.3 percent, -32.5 percent, -2.2 percent, 46.9 percent and 11.8 percent. What is the variance of these returns?
Particular aspect of sociology : This essay gives you an opportunity to look at a particular aspect of sociology in terms of current affairs and analyse the popular circumstance against the expectations that the lectures and readings have set up

Reviews

Write a Review

Finance Basics Questions & Answers

  Find the immediate dilution potential

Pebble Beach Country Club currently has four million shares of stock oustanding and will report earnings of $7 million in the current year. The company is planning the issuance of 500,00 additional shares that will net $35.00 per share to the company..

  What would be the annual interest rate from that company

A payday loan company charges 6 percent interest for a two-week period. What would be the annual interest rate from that company?

  Solving multiple choice finance questions

Determine which of the following typically would not affect the dividend policy of the firm?

  Susie can earn the nominal annual rate of return

Susie can earn the nominal annual rate of return of= 12%, compounded semi-annually.

  Determine overall percentage decrease in total assets

The Following data was reported by Gap, Inc in its 2006 yearly report. Estimate the overall percentage decrease in total assets from 2002 to 2006.

  Potential benefits and pitfalls of acquisitions

Have you ever been in a corporation that was merged with another firm? What were the reasons given for the need to merge? Were the targets met?

  What is the reward-to-volatility ratio for the equity fund

Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund?

  Draw a graph showing the payoff and profit for a straddle

Draw a graph showing the payoff and profit for a straddle using these options.

  Compute rate of return on the portfolio

Use the information in the previous problem and consider a portfolio with weights of .60 in stocks and .40 in bonds.

  Find dollar amount of the maintenance margin

An American firm sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. Amount of the initial margin is $20,000.

  Computation of net present value and profitability index

Computation of net present value and profitability index of a project and expected net cash flows of $3,000 a year for 10 years if the project's required return is 12 percent

  What is the required return

The next dividend payment by Blue Cheese, Inc., will be $1.64 per share. The dividends are anticipated to maintain a growth rate of 8 percent forever. If the stock currently sells for $31 per share, what is the required return?

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