Question

What is the net profit for a six-year project ?: with initial disbursement of $ 40,000...

What is the net profit for a six-year project ?: with initial disbursement of $ 40,000 expecting to produce income of $ 8,000 in 10 years? The expected discount rate is 6% annual interest. Do you get back what you have invested? How much is the net profit? How long does it take to recover the investment?

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What will be the net present value of a project that provides net cash flow of...
What will be the net present value of a project that provides net cash flow of $20,000 at the end of the first year, $7,000 at the end of the second year, and $13,000 at the end of the third year? The initial cost is $8,000 and the appropriate discount rate is 10%. Tophill Corporation is considering a project that will pay $10,000 at the end of the first year, $22,000 at the end of the second year, and $40,000...
A project has an initial cost of $36,075, expected net cash inflows of $14,000 per year...
A project has an initial cost of $36,075, expected net cash inflows of $14,000 per year for 7 years, and a cost of capital of 10%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. Answer = _____________________ A project has an initial cost of $48,675, expected net cash inflows of $14,000 per year for 10 years, and a cost of capital of 13%. What is the project's PI? Do not round...
The company has a project with a 5-year life that requires an initial investment of $210,000,...
The company has a project with a 5-year life that requires an initial investment of $210,000, and is expected to yield annual cash flows of $59,500. What is the net present value of the project if the required rate of return is set at 8%? Net Present Value= ($59,500*???)-210,000 What NPV does the previous calculation yield?  $Note: Round your answer to the nearest whole dollar.
A project has an initial investment in equipment of​ $310,000 and in net working capital of​...
A project has an initial investment in equipment of​ $310,000 and in net working capital of​ $62,000. The equipment will be depreciated over the​ 3-year life of the project to a salvage value of​ $155,000. All of the net working capital will be recouped at the end of the project. The annual operating cash flow is​ $345,000 and the discount rate is 25 percent. What is the​ project's net present value if the tax rate is 34​ percent? A. ​$380,800.00...
You are considering a 10-year project: An initial investment (today) in equipment of $900,000 is required....
You are considering a 10-year project: An initial investment (today) in equipment of $900,000 is required. There will be no salvage value for this equipment after 10 years. The equipment is depreciated using the straight-line method, $90,000/year for 10 years. Annual expected revenues are $700,000/year for 10 years (beginning 1 year from today). Annual expected operating expenses are $250,000/year for 10 years (beginning 1 year from today). This $250,000 does not include depreciation. The tax rate is 35%. An investment...
East Coast Television is considering a project with an initial outlay of​ $X (you will have...
East Coast Television is considering a project with an initial outlay of​ $X (you will have to determine this​ amount). It is expected that the project will produce a positive cash flow of $55,000 a year at the end of each year for the next 14 years. The appropriate discount rate for this project is 11 percent. If the project has an internal rate of return of 14 ​percent, what is the​ project's net present​ value? 1. If the project...
A project has an initial cost of $63,400, expected net cash inflows of $8,000 per year...
A project has an initial cost of $63,400, expected net cash inflows of $8,000 per year for 11 years, and a cost of capital of 14%. What is the project's PI? Do not round your intermediate calculations. Round your answer to two decimal places.
A proposed wind project would require an initial investment of $1.5 million. It is expected to...
A proposed wind project would require an initial investment of $1.5 million. It is expected to have an annual net benefit of $120,000. The wind project is expected to last for 30 years. Estimate the simple payback period, benefit-cost ratio and the return on Investment. Based on the results, would you go ahead with the project? Assume Discount Rate 8% SPP = IC/cash flow per period = 1,500,000/120,000 = 12.5years ROI % = inverse SPP = 100/SPP = 100/12.5 =...
No need to show work, Will thumbs up fast. 1.) What is the net present value...
No need to show work, Will thumbs up fast. 1.) What is the net present value of a project that has an initial cost of $40,000 and produces cash inflows of $8,000 a year for 11 years if the discount rate is 15 percent? Group of answer choices $798.48 $1869.69 $1240.23 $2470.01 2.) The Chicken Basket is considering a project with an initial cost of $20,000. The project will produce cashflows of: $6,700 in year 1, $6,300 in year 2,...
CrochetCo is considering an investment in a project which would require an initial outlay of $302774...
CrochetCo is considering an investment in a project which would require an initial outlay of $302774 and produce expected cash flows in years 1 through 5 of $89756 per year. You have determined that the current after-tax cost of the firm's capital (required rate of return) for each source of financing is as follows: Source of Capital Cost Weight Long-Term Debt 4% 59% Preferred Stock 10% 18% Common Stock 14% 23% What is the net present value of this project?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT