Your company has an opportunity to invest in a project

Assignment Help Finance Basics
Reference no: EM13388294

Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $18,500 the first year, $21,000 the second year, $25,000 the third year, -$10,000 the fourth year, $31,000 the fifth year, $37,000 the sixth year, $39,000 the seventh and eighth year, and -$9,000 the ninth year. The project would cost the firm $145,000. If the firm's cost of capital is 11%, find NPV, IRR and MIRR for the project. Do you accept this project? Why?

Reference no: EM13388294

Questions Cloud

Find the after-tax investment value rounded to the nearest : a corporation purchased a machine for 60000 five years ago. it had an estimated life of 10 years and an estimated
While information systems has one meaning it can be used in : while information systems has one meaning it can be used in different ways for companies to keep a competitive edge on
Xcan anyone suggest a chart of accounts for manufacturing : xcan anyone suggest a chart of accounts for manufacturing firm? our company is to produce autoclave aerated concrete
Briefly discuss the marketing research process how can a : briefly discuss the marketing research process. how can a firm leverage its marketing information systems mis to yield
Your company has an opportunity to invest in a project : your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of 18500 the
Explain why projects and project management are important : 1 why projects and project management are important. how have you seen projects used in your personal life? did the
Identify a business research project in your own business : resources the university library or the electronic reserve readingsidentify a business research project in your own
Write difference in the equivalent uniform annual cost euac : machine a waspurchasedthreeyearsago for 10000 and had an estimated market valueof 1200 at the end ofits 10-year life.
You will be developing a simple portfolio that will be used : you will be developing a simple portfolio that will be used for analysis over the following five weeks. this will also

Reviews

Write a Review

Finance Basics Questions & Answers

  What will the annual percentage rate for this financing

Currently the company has no funds on deposit with the bank and will need the loan to cover the compensating balance as well as their financing needs. What will the annual percentage rate (APR) for this financing?

  Calculate the contribution margin ratio

Rock is sold to contractors who use the product in construction projects. Requires to increase sales by advertising. Spend $100,000 advertising campaign. Calculate the contribution margin ratio

  Computation of the price of the forward contract

Computation of the price of the forward contract and position and what are the forward price and the value of the short position in the forward contract

  Performance evaluations

The Promotion and Advertising Department at Jefferson Corporation coordinates point of buy promotion for the distributions. Employee of department are graphic arts or marketing majors who create campaign materials and conduct market research.

  How much of the gain is ordinary income

Jess sold a piece of equipment she used in her business. The equipment cost Jess $51,500 several years ago and had accumulated depreciation taken in the amount of $20,300. Jess sold the equipment for $35,000.

  Comparing and contrasting debt and equity financing

Prepare a paper comparing and contrasting debt and equity financing. In your paper, discuss the following questions:

  How much will her monthly payments be

If she pays off the loan in 36 months, what are her monthly payments? If she makes a down payment of $220, how much will her monthly payments be? Do not round until the final answer. Then, round to the nearest cent.

  How might that influence the decision

If Billy and his agent think tax rates are likely to be higher in the future, how might that influence the decision?

  What is one share of abc preferred stock worth

ABC preferred stock pays a $3 annual dividend that will last forever. The current market rate of return is 8% for this type of investment. What is one share of ABC preferred stock worth?

  How much would shulas profit increase

Each steak dinner sells for $12.40 each. How much would Shula's profit increase if 10 more dinners were sold?

  Find the amount of interest earned in the fifth year

Assume that delta t = 1/[10(1 + t)^2] and A(0) = 100. Find the amount of interest earned in the fifth year.

  Use constant growth model to calculate price of the stock

IP Corporation is expected to pay $1.70 dividends next year. The dividend growth rate is expected to be 7 percent forever. If the required rate of return for IP is 10 percent.

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