What is the npv of the project

Assignment Help Finance Basics
Reference no: EM131114105

St. Johns River Shipyards's welding machine is 15 years old, fully depreciated, obsolete, and has no salvage value. However, even though it is obsolete, it is perfectly functional as originally designed and can be used for quite a while longer. The new welder will cost $84,500, and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $28,000 to $56,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the firm's WACC is 14%.

What is the NPV of the project? Round your answer to the nearest cent.

What is the NPV of the project? Round your answer to the nearest cent.

Reference no: EM131114105

Questions Cloud

Create program perform error-checking on the initial values : Create a program called Date.java to perform error-checking on the initial values, for instance: fields month, day, and year. Also, provide a method nextDay() to increment the day by one.
Explain advantages of promoting social tolerance : Using a child development theory of your choice, explain the advantages and disadvantages of promoting social tolerance among children under the age of 10.
Determining the company stock today : Schiiller Corp will pay a $2.94 per share dividend next year, The company pledges to increase its dividend by 4.5 percent per year, indefinitely, If you require a return of 12 percent on your investment, how much will you pay for the company's sto..
Question regarding the value of the bond today : Two years ago, you bought a fifteen year bond at its face value of $1,000. The coupon rate on this bond is 9%, payable annually. Today (just after receiving the second annual coupon payment), the current yield on the bond is 7.5%. What is the valu..
What is the npv of the project : What is the NPV of the project? Round your answer to the nearest cent. What is the NPV of the project? Round your answer to the nearest cent.
What are the security issues that should be addressed : What are the security or control issues that should be addressed as part of the technology selection process for Kirby's business? Propose how you would address ethics or information security issues as part of the technology selection process..
Propose an alternate way of doing research : Can you propose an alternate way of doing research on willing human subjects which would protect the dignity of the individually and at the same time yield the necessary information we need to advance medical science?
Component cost of debt : The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year.  Assume the firm has sufficient retained earnings to fund the equity portion o..
Determination of the appropriate crime prevention strategy : A determination of the appropriate crime prevention strategy for the jurisdiction based on this analysis. A review of academic literature and studies on the various crime prevention programs to address the needs of the community

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the company cost of capital

What is the company cost of capital? What is the after-tax WACC, assuming that the company pays tax at a 35% rate?

  Determine the equal annual end of year payment

Determine the equal, annual, end-of-year payment required each year over the life of the loans shown in the following table to repay them fully during the stated term of the loan.

  Compute the bond expected rate of return

Compute the bond's expected rate of return? Determine the value of the bond to you, given your required rate of return.

  Using stocks and options to create risk-free hedge portfolio

Methods of using stocks and options to create a risk-free hedge portfolio can be created. Support your answer with examples of these methods being used to create a risk-free hedge portfolio.

  What yield did melissa earn on her investment

A year ago, Melissa purchased 50 shares of common stock for $20 per share, During the year, ther value of her stock decreased to $18 per share, If the stock did not pay a dicidend during the year, what yield did Melissa earn on her investment?

  Guided response review several of your classmatesrsquo

in the video segment you will watch an interview with two great investors of the twentieth century.nbsp imagine you

  Describe stock valuation with constant growth rates

Describe Stock Valuation with constant growth rates in the dividends and Constant growth valuation Thomas Brothers is expected to pay a $3 per share dividend at the end of the year

  Congressman david dreier rndashca chairman of the house

the following two items appeared on the internet concerning the gaap requirement to expense stock options.congressman

  Compute amount of resources required to support firms cash

american products is concerned about managing cash efficiently. on the average inventories have an age of 90 days and

  Computation of contract investment realization

Computation of Contract Investment realization and definition of the term hedging and You hold the option until the expiration date when IBM stock

  What is meant by fiscal policy highlight the role of taxes

what is meant by fiscal policy?highlight the role of taxes in fiscal policy. differentiate between budget deficit and

  Capital budgeting involves decisions about whether or not

capital budgeting involves decisions about whether or not to invest in fixed assets and it has a major influence on

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