A project produces a cash flow of $432 in year 1, $137 in year 2, and $797
Question:
A project produces a cash flow of $432 in year 1, $137 in year 2, and $797 in year 3. If the cost of capital is 15%, what is the project’s PV? If the project requires an investment of $1,200, what is its NPV?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 87% (8 reviews)
PV C 1 1 r 1 C 2 1 r 2 C 3 ...View the full answer
Answered By
Aysha Ali
my name is ayesha ali. i have done my matriculation in science topics with a+ . then i got admission in the field of computer science and technology in punjab college, lahore. i have passed my final examination of college with a+ also. after that, i got admission in the biggest university of pakistan which is university of the punjab. i am studying business and information technology in my university. i always stand first in my class. i am very brilliant client. my experts always appreciate my work. my projects are very popular in my university because i always complete my work with extreme devotion. i have a great knowledge about all major science topics. science topics always remain my favorite topics. i am also a home expert. i teach many clients at my home ranging from pre-school level to university level. my clients always show excellent result. i am expert in writing essays, reports, speeches, researches and all type of projects. i also have a vast knowledge about business, marketing, cost accounting and finance. i am also expert in making presentations on powerpoint and microsoft word. if you need any sort of help in any topic, please dont hesitate to consult with me. i will provide you the best work at a very reasonable price. i am quality oriented and i have 5 year experience in the following field.
matriculation in science topics; inter in computer science; bachelors in business and information technology
_embed src=http://www.clocklink.com/clocks/0018-orange.swf?timezone=usa_albany& width=200 height=200 wmode=transparent type=application/x-shockwave-flash_
4.40+
11+ Reviews
14+ Question Solved
Related Book For
Principles Of Corporate Finance
ISBN: 9781265074159
14th International Edition
Authors: Richard Brealey
Question Posted:
Students also viewed these Business questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
You want to retire in 27 years, and you've decided you will deposit an equal amount in your account at the beginning of each month until you retire? If you want to have $4,200,000 in your account at...
-
The essence of capital budgeting and resource allocation is a search for good investments to place the firm's capital. The process can be simple when viewed in purely mechanical terms, but a number...
-
Which of the following statements is FALSE about illusory correlations: An illusory correlation refers to the tendency to perceive two things as being related when they are not, or being more...
-
Explain how trade credit allows firms to use their suppliers as sources of short-term funds.
-
Computer technology in accounting systems and electronic transfer of funds has changed since the 1980s. Have these changes reduced or increased the likelihood of billing scheme frauds?
-
Chemical potential is a/an (a) Extensive property (b) Intensive property (c) Reference property (d) None of these.
-
The stockholders?? equity T accounts of Life??s Greeting Cards Inc. for the current fiscal year ended December 31, 2012, are as follows. Prepare a statement of stockholders?? equity for the fiscal...
-
The inventory for Target over last three years was 403 in 2022, (3249) in 2021, and (1661) in 2020 (United States Securities and Exchange Commission, 2023). Inventory uses LIFO method, states...
-
In a supermarket, the every Monday morning restocking of shelves by a bread vendor is an example of: A) safety stock replenishment B) economic order quantities C) reorder points D) fixed order...
-
In Figure 13.1, would it have been better to have deducted dividends from the net cash raised from shareholders? Should we then have deducted interest payments from net cash raised from debtholders?...
-
Lofting Snodbury is considering investing in a new boring machine. It costs $380,000 and is expected to produce the following cash flows: If the cost of capital is 12%, what is the machines NPV? Year...
-
What do we mean by density?
-
Jean Michaud pays his two employees $900 and $1,200 per week. Assume a state unemployment tax rate of 5.7% and a federal unemployment tax rate of .6%. What state and federal unemployment taxes will...
-
1. As of December 31, 2017, Kent Company has assets of $3,500 and owners equity of $2,000. What are the liabilities for Kent Company as of December 31, 2017?
-
The cost accountant of Nono Chemicals Ltd determined the overhead-recovery rate for the year 2009 (based on direct-labour hours) with the following estimates: Rs. Indirect labour 1,15,000 Inspection...
-
The company has 100,000 bonds with an 12% coupon rate, payable semiannually, 20 years to maturity, selling at $1,125 per bond. The company also has 1,500,000 shares of common stock outstanding. The...
-
find the NPV worst 0.25 10 $800 $4,000,000 most likely 0.5 20 $1,000 $5,000,000 best 0.25 25 $1,200 $6,000,000
-
Mr. Ng contributed $1000 to an RRSP at the beginning of each calendar quarter for the past 20 years. The plan earned 10% compounded quarterly for the first 10 years and 12% compounded quarterly for...
-
(a) Explain why the concentration of dissolved oxygen in freshwater is an important indicator of the quality of the water. (b) How is the solubility of oxygen in water affected by increasing...
-
Earlier in the chapter, we characterized the balance sheet as providing a snapshot of the firm at one point in time and the income statement as providing a video. What did we mean by this? Is the...
-
State whether each of the following events would increase or decrease the ratio of market value to book value. a. Big Oil announces the discovery of a major new oil field in Costaguana. b. Big Autos...
-
a. In early 2013, the market values of the shares of many banks (e.g.. Bank of America or Citigroup) were less than book value per share. How would you interpret this pattern? b. At the same time,...
-
C1 1. Find the equivalent capacitance across the terminals of the circuit in Fig. 2.32. 2 2.7 F 2.7F 100 F=C3 10 F C4 Figure 2.32 Circult for Problem 1.
-
Resilience Program Your company's leadership team has decided to launch an Employee Wellness Program and would like to develop a Resilience Training component as part of this new initiative. As a...
-
A charge of q =-3 C is placed in an electric field. The x-component of force on q is Fx =3.8 N. In newtons per coulomb, what is the x-component of the electric field at q?
Study smarter with the SolutionInn App