User Account

All Pages

What is the npv of the project

Assignment Help Finance Basics
Reference no: EM131922234

A project costs $121,000 today to get started and will produce after-tax cash flows of $10,000 in year 1, $10,000 in year 2, and $20,000 in year 3. After year 3 the cash flows will increase by 4% per year forever. What is the NPV of the project if the discount rate is 15%?

Reference no: EM131922234

Questions Cloud

What is the total equity value of xyz corp : If the discount rate is 15%, what is the total equity value of XYZ Corp?
What is the current share price : In year 10 it will pay a dividend of $12.00 per share and this will grow at a rate of 4% per year forever after. If the required return on the stock is 18%.
What is the price you would pay per share : If you expect those dividends to rise at 2% per year forever, and your discount rate on the stock is 10%, what is the price you would pay per share?
What price are you willing to pay per share : If you think the rate of return on the preferred stock should be 7.1%, what price are you willing to pay per share?
What is the npv of the project : After year 3 the cash flows will increase by 4% per year forever. What is the NPV of the project if the discount rate is 15%?
Build a new headquarters in sandy : Your startup firm needs $12 million to build a new headquarters in Sandy. As the CFO you have decided to raise the money with a bond issue.
How are projects linked to the strategic plan : An explanation of the impact of classifying projects as either compliance, strategic, or operations projects.
Maturity on the investment : If you buy them and Ford makes all its payments, what will be your yield to maturity on the investment, stated as an APR?
Zero-coupon bond with 18 years to maturity : What is the market value of a $1000 zero-coupon bond with 18 years to maturity, if the yield to maturity is 4.3% stated as a semiannual APR?

Reviews

Write a Review

Finance Basics Questions & Answers

  Case study:ohio rubber works, inc.

case study:Ohio Rubber Works, Inc.

  Discuss the short term and long term effects of foreigners

Since the early 1980s, foreign portfolio investors have purchased a significant portion of U.S. Treasury bond issues. Discuss the short-term and long-term effects of foreigners' portfolio investment on the U.S. balance of payments.

  How would it affect the acid-test ratio

Selected financial data regarding current assets and current liabilities for The Home Depot and Lowe's,two close competitors in the building supply industry.

  Compute the current price of the stock

Laser Optics will pay a common stock dividend of $1.60 at the end of the year (D1). The required rate of return on common stock (Ke) is 13 percent.

  What should dash do to act on his speculation

Dash Brevenshure works for the currency trading unit of ING Bank in London. He speculates that in the coming months the dollar will rise sharply vs. the pound. What should Dash do to act on his speculation?

  What is dollar profit based on the bond current price

A $1,000 par value bond was issued 25 years ago at a 12 percent coupon rate. It currently has 15 years remaining to maturity.

  Used effectively in a risk management program

Avoidance is a risk-control technique that can be used effectively in a risk management program.

  The alternative of buying a call at a higher exercise price

What reasons could be given for the alternative of buying a call at a higher exercise price? At a lower exercise price?

  Discuss and describe the agenda setting as action priorities

Discuss and describe the agenda Setting as action priorities?

  Difference in the way investors construct their portfolios

How do Korniotis and Kumar define smart and dumb and what is portfolio distortion - Discuss the biases they discern in investor behavior and how they are related to the investor's knowledge and/or informational advantage.

  What is jower cost of capital

If THE COST of common equity for the firm os 20.6% the cost of preferred stock os 12.2%, and the beforetax cost of debt is 9.8% What is Jower cost of capital? The firm tax rate is 34%

  Fill in the balance sheet for the jamestown company

Fill in the balance sheet for the Jamestown Company based on the following data (assume a 365-day year): Sales = $3,650,000 Total asset turnover = 4x Current ratio = 3:1 Quick ratio = 2:1 Current liabilities to net worth = 30% Average collection peri..

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: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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