Calculate the NPV of the following project for discount rates of 5, 12 and 19 per cent.
Question:
Calculate the NPV of the following project for discount rates of 5, 12 and 19 per cent.
Transcribed Image Text:
Year Cash flow 0 -77,000 +55,000 2 +320,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (2 reviews)
The Net Present Value NPV of a project is calculated by discounting the cash flows to their present values and then subtracting the initial investment The formula for NPV is Given the cash flows for the project Lets calculate ...View the full answer
Answered By
Dulal Roy
As a tutor, I have gained extensive hands-on experience working with students one-on-one and in small group settings. I have developed the ability to effectively assess my students' strengths and weaknesses, and to customize my teaching approach to meet their individual needs.
I am proficient at breaking down complex concepts into simpler, more digestible pieces, and at using a variety of teaching methods (such as visual aids, examples, and interactive exercises) to engage my students and help them understand and retain the material.
I have also gained a lot of experience in providing feedback and guidance to my students, helping them to develop their problem-solving skills and to become more independent learners. Overall, my hands-on experience as a tutor has given me a deep understanding of how to effectively support and encourage students in their learning journey.
0.00
0 Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9780077173630
3rd Edition
Authors: David Hillier, Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan, Jeffrey F. Jaffe
Question Posted:
Students also viewed these Business questions
-
Jereld Kim founded Kimco LTD, a firm that is currently one of the largest producers of paper and pulp with annual sales of AUD 800 Million. Kim located his first plant in a rural town in Tasmania,...
-
The public image of business in the latter part of the nineteenth century was hardly flattering. The adventures of so-called Robber Barons constantly made the headlines and their exploits matched...
-
ABC Company has the following mutually exclusive projects. If the company's payback period is 2 years, which of these projects should be chosen? Project A Year 0 -19,500 1 11,500 2 8,750 3 2,500...
-
Exhibits 7.17 and 7.18 provide footnote excerpts to the financial reports of The Coca-Cola Company and Eli Lilly and Company that discuss the stock option grants given to the employees of the two...
-
Lory Company has a total debt to total assets ratio of 45% and a current ratio of 4.1. The firm's stock sells for $ 71.0 per share. The total market value of the equity is $ 43.6 million. The...
-
A car is traveling along a circular curve that has radius . If its speed is v and the speed is increasing uniformly at rate a t , determine the magnitude of its acceleration at this instant. Given: p...
-
You are considering financing a new car which cost $\$ 51,300$ with an amortized loan. The nominal rate is $2.9 \%$ per annum, the term of the loan is 6 years, and you will make monthly payments. How...
-
For the ER diagrams created in the following exercises, map the ER diagram into a relational schema and do the following: a. For exercise E2.2a, show several records in each relation and mark those...
-
Thornton Enterprises produces a product with fixed costs of $37,600 and variable cost of $3.30 per unit. The company desires to earn a $24,000 profit and believes it can sell 11,000 units of the...
-
Marielle Machinery Works is considering a project which has an initial investment of 10,000 and has expected cash flows of 0 in year 1, 7,500 in year 2, and 8,500 in year 3. The company uses the IRR...
-
Vedanta Resources has invested 8 million in a new mining project lasting 3 years. Depreciation is charged on a straight line basis to zero over the course of the project. The project generates...
-
Eight-month-old Shaun is well below average in height and painfully thin. He cries during feedings and is listless and irritable. Shaun's single mother feels overwhelmed and discouraged. Why do Shaun...
-
PV&A will need $8 million 4 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 2...
-
Olivia has a portfolio of 8 securities, each with a market value of $6,000. The current beta of the portfolio is 1.25 and the beta of the riskiest security is 1.85. Olivia wishes to reduce her...
-
Summarize these topics: User Interfaces Available in Linux System Programs Available in Linux Summarize the Key Linux Distributions Summarize the Components of the Linux System Summarize the Key...
-
Explain the difference between lossless and lossy data compression. Which type normally provides a smaller file? What is ''lost'' in lossy audio data compression? Under what circumstances is it...
-
Honeywell is evaluating a major project, which is expected to yield free cash flows in one year of $144,400 or $176,200, with each outcome being equally likely (weak vs. strong economiy). The initial...
-
What is jargon, and when is it appropriate for business writing?
-
A bubble-point liquid feed is to be distilled as shown in Figure. Use the Edmister group method to estimate the mole-fraction compositions of the distillate and bottoms. Assume initial overhead and...
-
Dividend Growth Model Under what two assumptions can we use the dividend growth model presented in the chapter to determine the value of a share of stock? Comment on the reasonableness of these...
-
Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the...
-
Common versus Preferred Stock Suppose a company has a preferred stock issue and a common stock issue. Both have just paid a $2 dividend. Which do you think will have a higher price, a share of the...
-
The Operations Manager of Toshiba's laptop manufacturing plant is about to prepare her annual report to the Board of Directors. Using the table below, she outlined the performance of the plant based...
-
Firms expect each of their products to: cover the direct costs of production and help contribute to the regular fixed costs. cover the direct costs of production, but not contribute to the fixed...
-
Why is it difficult to determine award amounts in wrongful life cases? I. The cost for an entire lifetime is difficult to determine II. The cost is usually determined by comparing the "injured" with...
Study smarter with the SolutionInn App