Question: 12 There is a new road project which is expected to be finished in 4 years. This project has an initial cost of 1 millions.

12 There is a new road project which is expected to be finished in 4 years. This project has an initial cost of 1 millions. After the initial cost is paid, the road project is expected to provide 250,000$ in year 1, 300,000 in year 2, 320,000 in year 3 and 450,000 in year 4. It is known that the internal rate of return in this project 10.96%. What is the net present value? (10 Points) Enter your

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

internal rate of return in this project is 10.96% There is a new road project which is expected to be finished in 4 years. This project has an initial cost of 1 million$. After the initial cost is...

BNL corporation has just distributed a 45 dividend. The company has announced that dividend payments will grow by 5% in next year, 3% in two years and 10% in three years. If the dividends are...

There is a new road project which is expected to be finished in 4 years. This project has an initial cost of 1 million$. After the initial cost is paid, the road project is expected to provide...

Can someone help me with the questions? I don't understand. FIN 390 Assignment - Fall 2020 Capital Budgeting Mini Case Instructions: The assignment is based on the mini case below. The instructions...

Instructions: The assignment is based on the mini case below. The instructions relating to the assignment are at the end of the case. Rosa Lee and Scott Bradshaw are facing an important decision....

FIN 390 Assignment - Fall 2020 Capital Budgeting Mini Case Instructions: The assignment is based on the mini case below. The instructions relating to the assignment are at the end of the case. Rosa...

Mini Case Study Assignment Q's 1-2 I have attached the Case study with pictures so you can see the graphs and I wrote out the questions I need help with. Suppose that Katie and Sam have hired you as...

Rosa Lee and Scott Bradshaw are facing an important decision. After having discussed different financial scenarios into the wee hours of the morning, the two computer engineers felt it was time to...

4. a) Which of these projects would you recommend? Explain why. (10 points) b) Briefly state the limitations of the approach you used in making this decision, and outline what further analysis you...

Describe how RNA polymerase backtracking could function to increase the fidelity of transcription.

What are the differences between Treasury Bills, Treasury Notes, TIPS, and Treasury Bonds?

Which of the following is an important volume - weighted median average of the rates on overnight repo transactions in the United States? Effective Federal Fund Rates ( EFFR ) London Interbank...

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

Confusion surrounding compensation and benefits, with a lack of information and benchmarking. Comparative data for benchmarking needs to be collected and disseminated.

1 What are the main problem areas in the GermanCzech joint venture of VolkswagenSkoda described above, and how can they be accounted for by reference to differences in culture? What part is played by...

A disregard for health and safety management. Managers can be encouraged to take a proactive approach to these issues, and a holistic approach that ties in these issues with the companys...