What is the net present value of the project

Assignment Help Financial Management
Reference no: EM131558608

A project has an intial outlay of $2,574.It has a singel payoffat the end of the year 6 of $8,541. What is the net present value (NPV) of the project if the company's cost of captial is 9.43 percent.

Round to two decimal places

Reference no: EM131558608

Questions Cloud

Total stockholders equity : What is Jack and Jill's total stockholders' equity?
Using price ratio analysis : Given the information below for Seger Corporation, compute the expected share price at the end of 2014 using price ratio analysis.
What is amount of the collection float as of end of day : What is the amount of the collection float as of the end of the day?
Capital structure weight of debt on book value basis : What is Filer's capital structure weight of equity on a book value basis? What is Filer's capital structure weight of debt on a book value basis?
What is the net present value of the project : What is the net present value (NPV) of the project if the company's cost of captial is 9.43 percent.
What is the amount of the february cash collections : What is the amount of the February cash collections?
How much dividend income did the investor receive : How much dividend income did the investor receive on December 31 from his investment in ABC stock?
What is portfolio expected return : The expected returns on these stocks are 8 percent, 14 percent, and 18 percent, respectively. What is the portfolio's expected return?
Find the dollar amount for which the bonds were sold : When the exchange rate was 80 yen per dollar, Find the dollar amount for which the bonds were sold.

Reviews

Write a Review

Financial Management Questions & Answers

  Valuation of declining growth stock

Martell Mining Company's ore reserves are being depleted, so its sales are falling. Also, because its pit is getting deeper each year, its costs are rising. As a result, the company's earnings and dividends are declining at the constant rate of 5% pe..

  What is the standard deviation of the stock returns

You find a certain stock that had returns of 18 percent, −25 percent, 21 percent, and 7 percent for four of the last five years. The average return of the stock over this period was 9.6 percent. What was the stock’s return for the missing year?  What..

  Provide the process for developing a capital budget

Provide process for developing a capital budget. Differentiate between operational and capital budgets. Provide process for developing an operational budget.

  What is the present value of this deposit

You are going to deposit an annual payment of $11,000 from Year 7 to Year 47 (i.e. first payment seven years from today and last payment forty seven years from today) into an account earning 8% compounded annually. What is the present value of this d..

  What is the portfolio beta

You own a stock portfolio invested 20 percent in Stock Q, 20 percent in Stock R, 20 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.53, 1.38, 0.9, and 1.01, respectively. What is the portfolio beta?

  Process of preparing a production cost budget

Mama Italiano Sauce is in the process of preparing a production cost budget for May. The actual costs in April were: Mama Italian Sauce Production Cost Budget April 2008 Production - Jars of sauce 20,000 Ingredient cost (variable) $16,000 Labor cost ..

  Which investment will give paul the higher annual interest

Bernie purchased 20 bonds with par values of $1,000 each.- Which investment will give Paul the higher annual interest after taxes are considered?

  What will the annual payments be for an ordinary annuity

Suppose California’s population is 36 5 million people and its population is expected to grow by 2% annually. How long will it take for the population to double? Find the PV of an ordinary annuity that pays $1,000 each of the next 5 years if the inte..

  Ignoring the effect of taxes-find the financial break-even

Consider a project with the following data: accounting break-even quantity = 10,300 units; cash break-even quantity = 9,500 units; life = six years; fixed costs = $190,000; variable costs = $88 per unit; required return = 10 percent. Ignoring the eff..

  No dividends will be paid on stock over the next eight year

Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next eight years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.50 per share 9 years..

  Compute the irr and mirr for project erie

Based on the cash flows shown in the chart below, compute the IRR and MIRR for Project Erie. Suppose that the appropriate cost of capital is 12 percent. Advise the organization about whether it should accept or reject the project.

  The loan reauires monthly repayment

Steven went to college on a student loan of $80,000 at 12%. The loan reauires monthly repayment over 5 years upon graduation. Upon his graduation 2 years ago, Steven started to pay it off. Steven is now considering paying it off once and for all. How..

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