User Account

All Pages

What is the NPV of this project

Assignment Help Accounting Basics
Reference no: EM132523309

Question - Alaskan Markets has a target capital structure of 40 percent debt and 60 percent equity. The pretax cost of debt is 6.3 percent, the tax rate is 35 percent, and the cost of equity is 14.6 percent. The firm is considering a project that is equally as risky as the overall firm. The project has an initial cash outflow of $1.92 million and annual cash inflows of $562,000 at the end of each year for 4 years. What is the NPV of the project?

Reference no: EM132523309

Questions Cloud

What is the discounted payback period of the project? : What is the discounted payback period of project? Using Net Present Value as the decision criterion, should SMS invest in this movie? Explain carefully.???????
Efficiency of your sub-ordering java application : To improve the overall functionality and efficiency of your sub-ordering Java application, you are considering the use of some of the Java predefined methods.
Long-term debt account on the company balance sheet : At the beginning of the year, Shinedown, Corp., had a long-term debt balance of $47,505. During the year, the company repaid a long-term loan in the amount
Compute employment expenses deduction pursuant : Duke travels extensively with S & M Inc. to market new pharmaceuticals throughout Canada. Compute employment expenses deduction pursuant
What is the NPV of this project : The project has an initial cash outflow of $1.92 million and annual cash inflows of $562,000 at the end of each year for 4 years. What is the NPV of the project
What is the expected two-year rate in three years : What is the expected two-year rate in three years? What is an inverted yield curve? Give one reason that may cause the yield curve to invert
What was the amount of machinery purchased : During 2015, Paragon sold for $26,000 a machine that cost $40,000, and purchased several other items of machinery. What was the amount of machinery purchased
Prepare adjusted trial balance on july : Prepare Statement of changes in owners' equity (assume owner didn't made any investment during the period). Prepare Comprehensive income statement
Determine the amount presented as a component of profit : Determine the amount presented as a component of profit or loss as a result of change in fair value periods: 2018, 2019, and 2020

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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