What is the net present value of net revenue stream

Assignment Help Financial Management
Reference no: EM131967528

Consider a piece of equipment for which the expenditure at the beginning of period 1 is $40,000. Given that this is a cost, consider it as a negative in a net revenue framework. The net revenue at the end of year 1 is $10,000. The net revenue at the end of year 2 is $15,000. The net revenue at the end of year 3 is $20,000. This includes revenue from operations and sale of the used equipment. The interest rate is 3%. What is the net present value of this net revenue stream?

Reference no: EM131967528

Questions Cloud

What is geometric average return : Stock X has an average (arithmetic) return of .0983 and a standard deviation of .208. What is the geometric average return?
What will be total profit or loss on these option positions : What will be your total profit or loss on these option positions if the stock price is $23.78 on the day the options expire?
What is required rate of return on stock : The historical return on equity (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock?
What is the net present cost of purchasing and operating : What is the net present cost of purchasing and operating this asset for three years?
What is the net present value of net revenue stream : What is the net present value of this net revenue stream?
What is the net present value of this net revenue stream : What is the net present value of this net revenue stream?
How much does the bluebird company need to deposit today : The account pays a 2% rate of return. How much does the Bluebird Company need to deposit today?
Explain specifically how capital budgeting tool : Explain specifically how capital budgeting tool could be modified to be used in one of these applications—or in completely different application you identify.
How would the investment recommendation change : Assume that the client's risk index could be increased to 0.055. How much would the yield increase, and how would the investment recommendation change?

Reviews

Write a Review

Financial Management Questions & Answers

  Dividends are tax-free income for individual investors

From a legal perspective, preferred stock is a form of corporate equity. All classes of stock must have equal voting rights per share. Common shareholders elect the corporate directors while the preferred shareholders vote on mergers and acquisitions..

  What percentage of your investment should be in a to make

What percentage of your investment should be in A to make the portfolio risk free

  Selection method most consistent with the goal of firm value

The project selection method most consistent with the goal of firm value maximization is:

  Provide financial analysis for start-up company

Your team has been hired to provide financial analysis for a start-up company, Bobble in Style, which produces customized bobble heads.

  Should the bank go long or short on the futures contracts

Dudley Savings Bank wishes to take a position in Treasury bond futures contracts, Should the bank go long or short on the futures contracts?

  What is the expected return of this portfolio

what alternative investment has the highest possible expected return while having the same volatility as Wal-Mart? What is the expected return of this portfolio

  The firm has no preferred stock outstanding

The firm has no preferred stock outstanding and 100,000 shares of common stock outstanding. Calculate the 2018 earnings per share.

  Use the value line beta and yahoo beta

Beta and Value A firm is expected to pay an annual dividend of $.50 next year. use the Value Line beta and Yahoo beta.

  What is the effective rate-nominal rate and periodic rate

What is the effective rate, the nominal rate and the periodic rate of this investment? Does your equal payment period match your compounding period?

  Pretax cost savings do we require for project to profitable

A proposed cost-saving device has an installed cost of $630,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $45,000, the margi..

  Explain the nature of pricing in block trades transactions

List and Explain important features of the structure of the NYSE. Explain the nature of pricing in the block trades transactions.

  Calculate the expected return of portfolio

Calculate the expected return of portfolio

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