What is the net present value of the asset

Assignment Help Accounting Basics
Reference no: EM133033315

Question - Suppose that we can invest $1,000 today in a capital asset, and will receive $500, $700 and $800, respectively, at the end of each of the 3 years of the assets life. Our discount rate for the project is 6%. What is the net present value of the asset?

Reference no: EM133033315

Questions Cloud

Better understand taxes and licenses : Clarify and help one another understand what taxes and licenses are required to run a business in indiana.
Managing internal operations : What examples of deception stood out to you or surprised you most in this case?
Major determinants of volume and revenue : The service sector tends to focus on the maximization of profits rather than costs, because location tend to have more impact on revenues than costs.
What are the implications of globalization : What are the implications of globalization when you have to look for a job? What would be the advantages or disadvantages of not preparing oneself for the globa
What is the net present value of the asset : At the end of each of the 3 years of the assets life. Our discount rate for the project is 6%. What is the net present value of the asset
Big data-cloud computing and location analytics : Big Data, which means many things to many people, is not a new technological fad. It has become a business priority that has the potential to profoundly change
Lessons-learned approach : Explain IN DETAIL how organizations are able to solve the issues surrounding the Lessons-learned approach.
Achieve environmental sustainability : Explain the feasibility of the hydrogen economy concept to achieve environmental sustainability.
Explain how contribution margin is calculated : Explain how contribution margin is calculated and explain how it is used to establish the selling price of a new product.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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