What is the net present value of project with cash flows

Assignment Help Financial Management
Reference no: EM13915488

What is the net present value of a project with the following cash flows if the discount rate is 15 percent?

Year 0, 1, 2, 3, 4

Cash flow: -59,200; 21,600; 28,300; 14,400; 7200

Reference no: EM13915488

Questions Cloud

Leadership characteristics and responsibilities pertaining : Write a 1,650-word paper in which you identify, compare, and contrast the policing function at the local, state, and federal organizational levels. Analyze how the organizational, management, administration, and operational functions at these thr..
How many laps did karen run : Abby ran 3 times as many laps as Karen. Adding 4 to the number of laps Abby ran and then dividing by 7 gives the number of laps Jill ran. Jill ran 1 lap. How many laps did Karen run
Equivalent of the value of the assets : In exchange, Hazel received 50% of Starling Corporation's only class of stock outstanding. The stock has no established value. However, all parties sincerely believe that the value of the stock Hazel received is the equivalent of the value of the ass..
Estimate the cost of capital for equity capital : Which of the following methods to estimate the cost of capital for equity capital will lead to the highest estimate?
What is the net present value of project with cash flows : What is the net present value of a project with the following cash flows if the discount rate is 15 percent?
Partnership at guaranteed amounts : sales of partners asset to the partnership at guaranteed amounts regardless of market values.
Decision making in groups and effective communication : You are a consultant hired to help improve the productivity of Celia Jane, a medium-sized furniture design firm. Celia Jane always kept up with the competition but now would like to gain some market share and expand its business.
Operating divisions-auto division and truck division : Sharp Motor Company has two operating divisions—an Auto Division and a Truck Division. The company has a cafeteria that serves the employees of both divisions. The costs of operating the cafeteria are budgeted at $78,000 per month plus $0.80 per meal..
Credit account titles are automatically indented : On July 1, 2014, Agincourt Inc. made two sales. It sold land having a fair value of $915,000 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $1,389,036. The land is carried on Agincourt’s books at a cost of $591,1..

Reviews

Write a Review

Financial Management Questions & Answers

  What was the companys cash coverage ratio

The company’s net income was $8,912 with a tax rate of 34%. The firm paid $3,987 in total expense with a depreciation of $4,873. What was the company’s cash coverage ratio?

  Required rate of return on the bond

What is the value of a 10 percent annual coupon, $1,000 par value bond with 20 years to maturity if the required rate of return on the bond is 12 percent?

  Compute the expected project length

Calculate the expected project length, variance of the critical path, standard deviation of the critical path and the activities along the critical path.

  Even though most corporate bonds

Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. If the yield to maturity is 8.1 percent, what is the current price of the bond?

  Approximate after-tax cost of debt for a new issue of bonds

The coupon rate on an issue of debt is 8%. The yield of maturity on this issue is 10%. The corporate tax rate is 31%. What would be the approximate after-tax cost of debt for a new issue of bonds?

  Question 1a- wildcat company stock is trading for 80 per

question 1a- wildcat company stock is trading for 80 per share. the stock is expected to have a year end dividend of 4

  What will be the price of the bond

XYZ has a $1,000 Face Value 5% Coupon Bond (paid semi-annually). The bond is selling for $949 today and matures in 8 years. (The YTM today is 5.8%) A) What will be the price of the bond in 1 year if the YTM investors demand is still 5.8%? $_________?..

  Calculate the duration of your bond

A bond has 3 years to maturity, 8% coupon, 7% yield and pays annually. Suppose yield decreases by 15 basis points, calculate the duration of your bond.

  What will the value of the firm be if company takes on debt

Cavo Corporation expects an EBIT of $17,100 every year forever. The company currently has no debt, and its cost of equity is 10 percent. The corporate tax rate is 35 percent. What will the value of the firm be if the company takes on debt equal to 50..

  Sale in receivables or the days sales outstanding

A company has net income of $218,000 a profit margin of 8.70% and an accounts receivables balance of $132,850. What is the company’s days sale in receivables or the days sales outstanding?

  Affect the validity of beta estimates

When it comes to estimate Beta, what compromises do we usually make? And in your opinion, which one (or several) of these compromises are mostly likely to affect the validity of beta estimates? Please provide your reasoning.

  Analyze the mix of classes of capital

When we analyze the “mix of classes of capital”, we might notice that some firms exhibit a “pecking order of financing”. Please evaluate this particular financial policy, and discuss its strengths and weaknesses. Would you more likely to recommend th..

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