What is the npv of a project

Assignment Help Finance Basics
Reference no: EM13517870

What is the NPV of a project that required a net investment of $500,00 and produced net cash flows of $150,000 per year for 5 years and $110,000 for the next 5 years? Assume the cost of capital is 14%.

a. $160,920
b. $211,080
c. $588,710
d. $392,580

Reference no: EM13517870

Questions Cloud

Determine by how much time the sphere beats the cylinder : A solid sphere, solid cylinder and hoop all with the same mass M and radius R roll down an incline without slipping. Determine by how much time the sphere beats the cylinder
Derive the demand curve for electricity : Explain what sign you would expect the coefficients b, c and d - Derive the demand curve for electricity.
Evaluate the ki for a competitive inhibitor : Calculate the Ki for a competitive inhibitor whose concentration is 4.5 x10-4 M that increases the Km of the substrate by 23.5%
Relationship between EU and national law in competition law : What can I mention in a small synthesis about the relationship between EU and national law in competition law?
What is the npv of a project : What is the NPV of a project that required a net investment of $500,00 and produced net cash flows of $150,000 per year for 5 years and $110,000 for the next 5 years? Assume the cost of capital is 14%.
What is the price elasticity of demand for delta flights : What is the price elasticity of demand for Delta flights between Chicago and Dulles - what is the cross-price elasticity of demand for Delta flights with respect to the price of Southwest flights?
Explain what''s the mass of sodium oxide produced : What's the mass of sodium oxide produced if 1.5 g of sodium reacts with excess gaseous oxygen. Write the balanced equation.
Turntec is considering replacing an automatic shuttle machin : Turntec is considering replacing an automatic shuttle machine
Find the angle of refraction for each wavelength : The index of refraction for crown glass is 1.512 at a wavelength of 660 nm (red), whereas its index of refraction is 1.530 at a wavelength of 410 nm (violet). what is the angle of refraction for each wavelength

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the present value of this liability

Imprudential, Inc., has an unfunded pension liability of $575 million that must be paid in 20years. To assess the value of the firm's stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6..

  Te third of the primary principles of finance is known as

write 400-600 words that respond to the following questions with your thoughts ideas and comments. this will be the

  Compute the sustainable growth rate

Faulk Corporation is going through a period of growth. The corporation just paid a dividend of $1.50 per share and expects dividends to grow at a 22 percent rate for next sevenyears and then level off to a constant rate thereafter.

  What is percy cost of common equity

Percy's CFO estimates that the company's WACC is 13.50%. What is Percy's cost of common equity? Round your answer to two decimal places.

  How much interest would you be paying in year 2

Your bank offers to lend you $100,000 at an 8.5% annual interest to start your new business. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying in Year 2? Explain.

  Explain covariance and correlation and standard deviation

Explain Covariance and correlation and standard deviation Describe what the portfolio variance calculations are meant to tell you as if you were asked to explain

  What are the specific fas 157 considerations for insurance

what are the specific fas 157 considerations for insurance companies with respect to fas 107

  What is the value of the unlevered firm

The estimated earnings before interest and taxes are $239,000 annually forever. Currently, the firm has no debt but is in the process of borrowing $400,000 at 9.5 percent interest. The tax rate is 30 percent. What is the value of the unlevered fir..

  Which functional areas of the firm will be concerned

If management learns from the economic analysis of Country A that wage rates are expected to increase by 10 percent next year, which functional areas of the firm will be concerned? Why will this be of concern to management?

  Express what is the company cost of equity

what is the company's cost of equity? 8.81 percent 9.94 percent 9.37 percent 10.04 percent 10.46 percent

  Given this additional information does using decision

hart lumber is considering the purchase of a paper company. purchasing the company would require an initial investment

  Create a straddle or a strangle

Create a straddle or a strangle. Select options suitable for either a straddle or a strangle strategy in which you expect the price of the stock to move up or down within the next two months.

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