Example of net present value method, Finance Basics

Assignment Help:

Example of Net Present Value Method

Cost of investment = 100,000/=,

Interest rate = 10percent,

Inflows year 1 = 80,000/=

Year 2 = 50,000/=

NPV   = 80,000 / 1.1 + 50,000 / (1.1)2 - 100,000

          = 14,049 positive hence invest.


Related Discussions:- Example of net present value method

Pending Solutions, How long until I get the results of my order

How long until I get the results of my order

Debtors collection period - formula, Debtors Collection Period - Formula ...

Debtors Collection Period - Formula Fomula is given below: Debtors collection period = 365/ Debtors turnover Or (365 x Average debtors)/ Annual credit sales This

IS LM, After carefully reading all the available information, prepare a two...

After carefully reading all the available information, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.

Solutions to agency problem, Solutions to agency problem The bondholde...

Solutions to agency problem The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of th

Vincent mind set, if u were the professor wht your opinion about vincent mi...

if u were the professor wht your opinion about vincent mind stage

Basel committee on banking supervision, Question 1: ‘The Basel II frame...

Question 1: ‘The Basel II framework provides a range of options for determining the capital requirements for, inter-alia, credit risk and operational risk to allow banks and s

Strike price and putable bond, Analysis of the bond issue (a) Show that...

Analysis of the bond issue (a) Show that the price of the bond is equal to that of a portfolio which contains i) a long position in an option-free but otherwise identical co

Debt finance in us of small companies, Debt Finance in US of Small Companie...

Debt Finance in US of Small Companies Why It CAN Be Difficult For Small Companies to Raise Debt Finance in US Lack of safety avoidances of finances available

Agency relationship between government and the shareholders, Agency Relatio...

Agency Relationship between Government and the Shareholders Shareholders and via extension, the company they own operate within the environment requiring the charter or licens

Write Your Message!

Captcha
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