What is the project net investment outlay

Assignment Help Other Subject
Reference no: EM132195857

Question - Financial health care

You are considering purchasing a new database system for your company. The system will cost $80,000, and it will cost another $15,000 for equipment and training. The system is expected to be sold after three years, when you plan to outsource database activities. You hope that you can sell your system to a competitor for $12,000. You expect to save $22,000 per year in operating costs. Your corporate cost of capital is 10%.

a. What is the project's net investment outlay at Year 0?

b. What are the projects' operating cash flows in Years 1, 2, and 3?

c. What is the terminal cash flow at the end of Year 3?

d. If the project has average risk, is it expected to be profitable? On what basis did you draw this conclusion?

Reference no: EM132195857

Questions Cloud

Commonly used by broad cost leadership strategy : Besides charging below average prices to customers, select which group of characteristics would be most commonly used by a broad cost leadership strategy.
Readylite company produces flashlight : The Readylite Company produces a flashlight in which product managers are trying to decide how long a warranty to issue.
What privacy and security concerns exist in using pe tools : What privacy and security concerns exist in using PE tools? What are your privacy and security concerns with this tool?
Production or purchasing is made in predetermined batches : When production or purchasing is made in predetermined batches or lots
What is the project net investment outlay : You are considering purchasing a new database system for your company. What is the project's net investment outlay at Year 0
Person with a positive test result has the cancer : Determine the probability that a person with a positive test result has the cancer.
How much redaction is necessary to anonymize : Discuss in 500 words, how much redaction is necessary to anonymize an electronic health record. Is it enough to redact the name? The name and address?
How well the regression line fits : The regression line is the line that best fits the x-y data. The correlation, on the other hand, tells you how well the regression line fits the data.
Write short program that uses for loop to populate an array : Write a short program that uses a for loop to populate an array. The array can store up to 10 integers entered by the user.

Reviews

Write a Review

Other Subject Questions & Answers

  Calculate the modified duration using paid claims

Fundamentals of Actuarial Practice: Interim Assessment Questions - Calculate the modified duration using paid claims as the liability cash flows

  Describe one evidence-based treatment for the diagnosis

Describe one evidence-based treatment for this diagnosis and provide a rationale for your choice. Research at least two peer-reviewed articles to support your evidence-based treatment selection.

  How society creates different conditions for men and women

Using the readings and media from the week, explain how society creates different conditions for men and women. Identify and explain at least two ways in which society is structured such that men and women are treated differently and explain why ..

  What does the age of globalization mean

It is said we are now in an age of globalization. First, what does that mean? Second, to the extent that globalization does exist, what are its advantages and disadvantages?

  Learning disability of american children

Describe the learning disability of American children? when is a child's communication considered delayed?

  Discuss the pros and cons of each theory

Select two of the humanist and interactionist theories presented in Chapter 8 of the text. Compare and contrast the features of the theories, with respect to the causes and influences of criminal behavior. Discuss the pros and cons of each theory...

  How stereotyping and attribution prophecy effects influence

Discuss how stereotyping, attribution, and self-fulfilling prophecy effects influence the perceptual process. Share a related personal experience.

  Measure to operationalize poverty

Which one is the best measure to operationalize poverty?

  Symbolic interaction ism

Applying sociological theory to aging could someone explain three of the perspectives: symbolic interaction ism, social conflict, and feminist

  A central characteristic of medieval science was that

What did the English poet Alexander Pope mean when he wrote: "God said, ‘Let Newton be!' and All was Light"? Which was NOT a feature of the seventeenth-century Scientific Revolution? A central characteristic of medieval science was that

  Provide a brief overview of the handout

Provide a brief overview of the handout and what are the elements of the crime of stalking under the statute discussed in this case?

  Upon meeting one of the wiggles

Upon meeting one of The Wiggles (part of a famous children’s TV show), a young child asks, “How did you get out of the box?” What stage does this statement represent?

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