Using a discount rate of 8 per cent, what is the net present value of the project
Question:
Using a discount rate of 8 per cent, what is the net present value of the project in Question 46.7?
Data from Question 46.7
What is the payback period on the following project cash flows? (Brackets indicate expenditure.)
Transcribed Image Text:
Year 81234 0 Net cash flows £ (15,000) 10,000 6,000 3,000 1,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (4 reviews)
The net present value NPV of a project is the sum of the present values of all of th...View the full answer
Answered By
Utsab mitra
I have the expertise to deliver these subjects to college and higher-level students. The services would involve only solving assignments, homework help, and others.
I have experience in delivering these subjects for the last 6 years on a freelancing basis in different companies around the globe. I am CMA certified and CGMA UK. I have professional experience of 18 years in the industry involved in the manufacturing company and IT implementation experience of over 12 years.
I have delivered this help to students effortlessly, which is essential to give the students a good grade in their studies.
3.50+
2+ Reviews
10+ Question Solved
Related Book For
Frank Woods Business Accounting Volume 2
ISBN: 9780273693109
10th Edition
Authors: Frank Wood, Alan Sangster
Question Posted:
Students also viewed these Business questions
-
Ques 1: What is the major complaint by firms concerning the Sarbanes-Oxley act of 2012? A. the legislative maximum allowable compensation for a CEO. B. the legal requirement to disclose project...
-
Assuming an interest rate of 6 per cent, what is the net present value of the net of tax cash flows in Question 46.2 for 20X4, 20X5, 20X6 and 20X7? Data from Question 46.2 Assume the company in...
-
According to Crowther (2013), the United States Department of Agriculture's MyPlate program, which replaced the traditional Food Pyramid in 2011, is an example of: Humoral dietary advice Food taboos...
-
Define change management and its significance in organizations. Discuss the challenges faced during the process of organizational change and strategies to overcome resistance.
-
Why might shirking on a team project in school be a dominant strategy, but not shirking on a team project at work?
-
What disciplinary action, either preventive or corrective, do you recommend for each of the two women? Why? op4
-
Driver fatigue. A researcher studied the number of traffic accidents that were attributed to driver fatigue at different times of the day. He noticed that the number of accidents was higher in the...
-
Mega Company and Holton Company are similar firms that operate within the same industry. The following information is available: a. Which company has the more favourable accounts receivable turnover...
-
Integrated Masters Inc. (IMI) is presently operating at 80% of capacity and manufacturing 111,000 units of a patented electronic component. The cost structure of the component is as follows: Raw...
-
Explain the meaning of each of the following terms. In your answer include an example to help with your explanation. a. Expansion. b. Contraction. c. Physical change. d. Sublimation. e. Diffusion. f....
-
What is the internal rate of return on the project in Question 46.7? Data from Question 46.7 What is the payback period on the following project cash flows? (Brackets indicate expenditure.) Year...
-
If retained, a machine would be depreciated 3,000 for each of the next five years, at which point it would be fully written-down and scrapped. The machine could be sold at any point in the next year...
-
When are decision trees an appropriate tool to use in the decision making process?
-
Gil and Ruth George have been friends of yours for many years. They have come to you for advice on their estate plan since they want a second opinion to make sure it is going to do what they hope....
-
The test statistic of z = 1.74 is obtained when testing the claim that p # 0.658. Identify the hypothesis test as being two-tailed, left-tailed, or right-tailed. Find the P-value. Using a...
-
Ann and Bob had their first date. Each either felt romantic chemistry (C) or no chemistry (NC) with the other person. Each person knows his/her own feeling but does not know the feeling of the other...
-
Find the following using countif, countifs, sumif, sumifs, averageif, and averageifs. Create all formulas and calculations directing in Excel. How many songs are sung by Moore? What is the average...
-
Total number of Ledgers, Groups, Entries etc. can be shown from o a. Tally Audit o b. Statistics o c. Accounts Information o d. Company Information
-
Refer to Exercise 4.24. In Exercise 4.24 A family is defined to be a group of two or more persons related by birth, marriage, or adoption and residing together in a household. According to Current...
-
Open Text Corporation provides a suite of business information software products. Exhibit 10-9 contains Note 10 from the companys 2013 annual report detailing long-term debt. Required: a. Open Text...
-
Dundas Limited purchased a machine under a hire purchase agreement on 1 January 20X8. The agreement provided for an immediate payment of 2,000, followed by five equal instalments of 3,056, each...
-
On 1 January 20X7, Carver bought a machine costing 20,000 on hire purchase. He paid a deposit of 6,000 on 1 January 20X7 and he also agreed to pay two annual instalments of 5,828 on 31 December in...
-
Why is it unlikely that many large companies could have existed if limited liability did not exist?
-
4. The risk-free rate of return is 3.78% and the market risk premium is 6.42%. What is the expected rate of return on a stock with a beta of 1.09?
-
Maddox Resources has credit sales of $ 1 8 0 , 0 0 0 yearly with credit terms of net 3 0 days, which is also the average collection period. Maddox does not offer a discount for early payment, so its...
-
Selk Steel Co., which began operations on January 4, 2017, had the following subsequent transactions and events in its long-term investments. 2017 Jan. 5 Selk purchased 50,000 shares (25% of total)...
Study smarter with the SolutionInn App