You quote oehmke who seem to have said that the npv could

Assignment Help Corporate Finance
Reference no: EM13380524

You quote Oehmke who seem to have said that the NPV could be "increasing as the discount rate increases". I doubt that very much ( assuming the base data stay the same). Could you explain in which circumstances that could be the case?

Secondly, you state that the discount rate could take into account inflation and risk. How would that work in practice. How would you come to a specific discount rate if you are the management accountant that has to evaluate an investment proposal?

Reference no: EM13380524

Questions Cloud

Identify and research a mutual fund or an exchange traded : identify and research a mutual fund or an exchange traded fund that focuses on equities.you may want to go directly to
1 1200 is deposited today into an account paying 6 interest : 1 1200 is deposited today into an account paying 6 interest compounded semiannually. how much interest will have been
The uk insurance industry currently has the following : the uk insurance industry currently has the following life-expectancy forecasts for people in their early 20s men 82
Q1 nbspnbsp a define agency problem explaining two types of : q1. nbspnbsp a define agency problem explaining two types of agency costs.b comment on the following quote... agency
You quote oehmke who seem to have said that the npv could : you quote oehmke who seem to have said that the npv could be increasing as the discount rate increases. i doubt that
1 calculate the audjpy cross rate when the following fx : 1 calculate the audjpy cross rate when the following fx spot rates are quoted bullaudusd0.6066bullusdjpy115.90 give
Overview of disaster management - kaylaexamine local state : overview of disaster management - kaylaexamine local state and federal - rosewhat issues to consider in meeting
How would milton friedman need to recompense corporate : how would milton friedman need to recompense corporate executives? how would a utilitarian? a deontological thinker?
1 what management organization and technology issues had to : 1. what management organization and technology issues had to be addressed when implementing business sufficiency

Reviews

Write a Review

Corporate Finance Questions & Answers

  Calculate missing amounts in the comparative balance

calculate missing amounts in the comparative balance sheets.comprehensive problem-calculate missing amounts issue price

  What is its annual dividend yield

IBM stock sells at about $195 per share and pays an annual dividend of $3.40. What is its annual dividend yield? Would you rather buy the stock or the bonds of IBM? Give some reasons.

  Scoto manufacturing is a matter firm in the machine tool

scoto manufacturing is a matter firm in the machine tool component industry the firms most recent common stock dividend

  Sue is an exponential discounter her discount function

sue is an exponential discounter. her discount function which illustrates her preference for money at various points in

  What is your total portfolio value

how much will your stocks be worth on April 19?  It is April 19, what is your total portfolio value?

  Find the capital structure and the cost of capital

Show the pros and cons of applying different investment decision rules when faced with the choice of investing corporate funds. Provide two examples

  Find the current total annual inventory cost

Novelty Gifts is experiencing some inventory control problems. The manager currently orders 10,000 units four times each year to handle annual demand of 40,000 units.

  Issuing swaps to investors in cdo tranches

AIG played central role in financial crisis by issuing swaps to investors in CDO tranches, promising to reimburse them for any losses on tranches in exchange for a stream of premium.

  Executive share option scheme

what difference would it make to the cost of the option if the executive were able to change the firm's dividend policy so as to stop the firm from paying out any dividends during the term of the option

  Determine the interest expense

Determine the interest expense that Rainey Corporation will show with respect to these bonds in income statement for the fiscal year ended September 30, 2010, suppose amortized premium is $67,000.

  Improving the firms financial condition

Analyze the data and draw your conclusions, comparing the financial conditions at the end of Yr2, Q8 to the Yr1, Q4. Finally, provide your recommendations for improving the firm's financial condition in a third year of operation.

  What is the number or instalments

Interest will be levied only on the unpaid part of the capital at an annual rate of 12%. what is the number or instalments?

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