What is the npv if the discount rate is 12 percent

Assignment Help Financial Econometrics
Reference no: EM13327208

Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,196,790. have a life of five years, and would produce the cash flows shown in the following table.

YearCash Flow
1 $557,801
2 -251,493
3 849,340
4 866,464
5 886,812

 

What is the NPV if the discount rate is 12.24 percent?

Reference no: EM13327208

Questions Cloud

How much will jack have to invest today in an account : Jack Robbins is saving for a new car. He needs to have $ 21,000 for the car in three years. How much will he have to invest today in an account paying 8 percent annually to achieve his target
How long was the cannon ball in the air : A cannon is launched at an angle of 45.00 and the cannon ball lands 301 m away. How long was the cannon ball in the air
What will be the effect of the price increase on firms fcf : Chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 83 percent as high if the price is raised 9 percent.
Why do people have a demand for money what does the demand : Why do people have a demand for money? What does the demand for money represent and what factors influence the demand for money? Please explain.
What is the npv if the discount rate is 12 percent : Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,196,790. have a life of five years, and would produce the cash flows shown in the following table.
What is the better gauge of our true cost of borrowing : When borrowing money, what is the better gauge of our true cost of borrowing - the nominal rate of interest or the real rate of interest? Please explain.
What is expansionary monetary policy : What is expansionary monetary policy? Why does expansionary monetary policy have an expansionary effect on the economy (that is, why does it cause aggregate demand to increase)? Please explain.
Given that monetary policy has only a long term effect on : Given that monetary policy has only a long term effect on an economy, central bankers should follow monetary rules rather than operate a more proactive policy approach as inflation targeting central banks currently do. Discuss.
What is the nash equilibrium in this case : For what values of X do both ? rms have a dominant strategy? What is the Nash equilibrium (or equilibria) in this case?

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine the effect on net income and earnings per share

Determine the effect on net income and earnings per share for issuing stock and issuing bonds. Assume the new shares or new bonds will be outstanding for the entire year.

  Discuss three challenges associated with global trade

Discuss key reasons why a country should engage in global trade, and describe the control systems that can be put in place to protect domestic trade.

  Determine what are the npv and irr for the project

The Pinkerton Publishing Company is considering two mutually exclusive expansion plans. Plan A calls for the expenditure of $50 million on a large-scale, integrated plant that will provide an expected cash flow stream of $8 million per year for 20..

  Calculate the certainty equivalent cash flow for year 4

A project has an expected risky cash flow of $500, in year 4. The risk-free rate is 4%, the market rate of return is 13%, and the project's beta is 1.2. Calculate the certainty equivalent cash flow for year 4.

  What would be the market value of trident corporation

What would be the market value of Trident Corporation if it were unlevered and what would be the expected return on equity if Trident were an all-equity firm?

  Which firm or firms if either should accept the project

Travel Excitement specializes in making travel reservations and promoting vacation travel. Wilderness Adventures has an aftertax cost of capital of 13 percent and Travel Excitement has an aftertax cost of capital of 11 percent.

  What rate of return do expect to earn on the investment

The Yield To Maturity on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually see the bond before it matures, your realized return is known as the holding period yield (HPY).

  Determine what will hmo do to obtain the contract

An HMO requests your hospital services for its obstetrics division. It offers to pay your hospital $2,000 for a vaginal delivery without complications (DRG 373).

  Determine what is capitals after-tax wacc

If the returns required by investors are 10 percent, 13 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC. Assume that the firm's marginal tax rate is 40 percent.

  Create pro forma statements of five year projections

Create pro forma statements of five year projections that are clear, concise, and easy to read.XYZ Company, INC.Profit and Loss StatementYear Ended December 31, 20XX%Sales 1,750,450Returns and allowances 2,752Net Sales

  Option valuation report

Value Joseph's option position based on Black-Scholes method and analysis needs cover details behind the standard Black - Scholes method and explain detailed adjustment made to the standard BS method

  What is the goal of common-size analysis

What does the financial analysis process reveal and what is the goal of common-size analysis

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