User Account

All Pages

What is the new npv of the project

Assignment Help Basic Statistics
Reference no: EM132046473

Assume you have completed a capital budgeting analysis of building a new plant on land you own, and the project's NPV is $100 million. You now realize that instead of building the plant, you could build a parking garage, and would generate a pre tax revenue of $22 million. The project would last 3 years, the corporate tax rate is 40%, and the WACC is 5%. What is the new NPV of the project, after incorporating the effect of the opportunity cost?

Reference no: EM132046473

Questions Cloud

Project of replacing several pieces of major machinery : DMJ, Inc., is considering a project of replacing several pieces of major machinery in its manufacturing process.
Stock market return over the same period averaged : Treasury bills currently pay a return of 3%; the stock market return over the same period averaged 11%, and Mountain company's beta
What is accumulated sum of the stream of payments : What is accumulated sum of the following stream of payments? $24,491 every year at the beginning of the year for 8 years, at 7.12 percent, compound annually
Describe the company including the business : Selecting a company, either real or fictitious. Completely describe the company including the business and where the company is located.
What is the new npv of the project : What is the new NPV of the project, after incorporating the effect of the opportunity cost?
Determine net incremental cash inflow : Determine ABC's net incremental cash inflow that would result 11 years from now as a result of building the factory.
Cash flows are after tax and depreciation : It shows all the cash flows are after tax and depreciation and the flat rate of 12% is estimated as the risk in both of these projects.
What is the company free cash flow for year : What is the company's free cash flow for year 1 of this project?
Cash flow to differ from accounting income is depreciation : If we assume that the only thing causing cash flow to differ from accounting income is depreciation,

Reviews

Write a Review

Basic Statistics Questions & Answers

  Statistics-probability assignment

MATH1550H: Assignment:  Question:  A word is selected at random from the following poem of Persian poet and mathematician Omar Khayyam (1048-1131), translated by English poet Edward Fitzgerald (1808-1883). Find the expected value of the length of th..

  What is the least number

MATH1550H: Assignment:  Question:     what is the least number of applicants that should be interviewed so as to have at least 50% chance of finding one such secretary?

  Determine the value of k

MATH1550H: Assignment:  Question:     Experience shows that X, the number of customers entering a post office during any period of time t, is a random variable the probability mass function of which is of the form

  What is the probability

MATH1550H: Assignment:Questions: (Genetics) What is the probability that at most two of the offspring are aa?

  Binomial distributions

MATH1550H: Assignment:  Questions:  Let’s assume the department of Mathematics of Trent University has 11 faculty members. For i = 0; 1; 2; 3; find pi, the probability that i of them were born on Canada Day using the binomial distributions.

  Caselet on mcdonald’s vs. burger king - waiting time

Caselet on McDonald’s vs. Burger King - Waiting time

  Generate descriptive statistics

Generate descriptive statistics. Create a stem-and-leaf plot of the data and box plot of the data.

  Sampling variability and standard error

Problems on Sampling Variability and Standard Error and Confidence Intervals

  Estimate the population mean

Estimate the population mean

  Conduct a marketing experiment

Conduct a marketing experiment in which students are to taste one of two different brands of soft drink

  Find out the probability

Find out the probability

  Linear programming models

LINEAR PROGRAMMING MODELS

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd