Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Aug 30, 2024

Super shipping wants to invest in a new ship. Given the following, calculate the Net Present Value: CAPEX in Year 0 $40m EBIT Year 1

Super shipping wants to invest in a new ship. Given the following, calculate the Net Present Value: CAPEX in Year 0 $40m EBIT Year 1 Year 10 $5m Depreciation (straight line) 10% pa Scrap Value Year 10 $5m Tax Rate 30% Interest Rate 7% WACC 10%

Hint: Calculate NOPAT = EBIT x (1 Tax rate) Calculate the NPV

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advances In Financial Machine Learning

Authors: Marcos Lopez De Prado

1st Edition

1119482089, 978-1119482086

More Books

Students also viewed these Finance questions

Question

★★★★★

Sosna Company has a department that manufactures wood trusses (wood frames used in the construction industry). The following information is for the production of these trusses for the month of...

Answered: 1 week ago

Question

★★★★★

Presented here are the components in Tamarisk, Inc.'s income statement. Determine the missing amounts. Sales Revenue Cost of Goods Sold Year $74,220 (b) 1 Year 2 Year 3 $109,100 $73,100 Gross Profit...

Answered: 1 week ago

Question

★★★★★

What is the reversal journal entry for mark-to-market?

Answered: 1 week ago

Question

★★★★★

Bountiful Manufacturing produces two types of bike frames (Frame X and Frame Y). Frame X passes through four processes: cutting, welding, polishing, and painting. Frame Y uses three of the same...

Answered: 1 week ago

Question

★★★★★

company XYZ is a contract incident response firm. Meaning that companies have a contract with them and when some sort of cyber incident occurs, XYZ is called upon to respond to the incident. You ve...

Answered: 1 week ago

Question

★★★★★

On January 1, 2017 Sarah Company purchased a new piece of equipment for $42,000. She estimates that the equipment will last about 20 years and then be worth $2,000 at the end. The depreciation...

Answered: 1 week ago

Question

★★★★★

Answer the following grade 12 physics questions.1. An archer shoots an arrow at 120 m/s at an angle of 45.0 above the horizontal. Which statement is correct?- The magnitude of the vertical component...

Answered: 1 week ago

Question

★★★★★

A horizontal beam of length L is supported at each end (x = 0 and x = L), as shown below. Suppose an external vertical force F is applied to the beam at location a, where a is measured from the left...

Answered: 1 week ago

Question

★★★★★

2. Select a major decision of a company/organization you have worked for (e.g., new process, new product, new facility, etc) or research a major private decision (e.g., Deep Water Horizon, iPhone,...

Answered: 1 week ago

Question

★★★★★

Q21 (EC). 16.10. A test for extrasensory perception (ESP) involves asking a person to tell which of 5 shapes-a circle, star, triangle, diamond, or heart-appears on a hidden com- puter screen. On each...

Answered: 1 week ago

Question

★★★★★

Comprehensive Problem Hersheys Big Bang ERP Halloween is the biggest candy season of them all, with $1.8 billion in sales. For Hersheys, Halloween 1999 was the scariest of all time. Hersheys had...

Answered: 1 week ago

Question

★★★★★

1. Organize and support your main points

Answered: 1 week ago

Question

★★★★★

3. Move smoothly from point to point

Answered: 1 week ago

Question

★★★★★

5. Develop a strong introduction, a crucial part of all speeches

Answered: 1 week ago

Previous Question Next Question