Question

Wellpoint Company is considering an investment project that will produce an operating cash flow of $415,200...

Wellpoint Company is considering an investment project that will produce an operating cash flow of $415,200 a year for five years. The initial cash outlay for equipment will be $1,027,000. An aftertax salvage value of $82,160 for the equipment will be received at the end of the project. The project requires $154,050 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 14 percent?

$388,174.80

$367,045.29

$353,609.37

$376,320.20

$345,631.90
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A project will produce an operating cash flow of $385,000 a year for three years. The...
A project will produce an operating cash flow of $385,000 a year for three years. The initial cash outlay for equipment will be $850,000. The net aftertax salvage value of $50,000 will be received at the end of the project. The project requires $72,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 14 percent? $45,915.26 $51,208.72 $59,612.87 $54,174.86 $47,320.15
A project will produce an operating cash flow of $475,000 a year for four years. The...
A project will produce an operating cash flow of $475,000 a year for four years. The initial cash outlay for equipment will be $1,080,000. The net aftertax salvage value of $81,000 will be received at the end of the project. The project requires $142,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 14 percent? $294,047.25 $308,116.57 $281,547.93 $317,286.90 $272,430.06
A project will produce an operating cash flow of $283,000 a year for four years. The...
A project will produce an operating cash flow of $283,000 a year for four years. The initial cash outlay for equipment will be $631,000. An aftertax salvage value of $42,000 for the equipment will be received at the end of the project. The project requires $56,000 of net working capital that will be fully recovered. What is the net present value of the project if the required rate of return is 16 percent? $166,218.32 $159,009.65 $151,870.15 $143,218.96 $137,642.18
A project will produce an operating cash flow of $358,000 a year for four years. The...
A project will produce an operating cash flow of $358,000 a year for four years. The initial cash outlay for equipment will be $785,000. The net aftertax salvage value of $42,000 will be received at the end of the project. The project requires $78,000 of net working capital that will be fully recovered when the project ends. What is the net present value of the project if the required rate of return is 14 percent? $237,613 $251,159 $274,300 $290,184 $309,756...
Jasper Metals is considering installing a new molding machine is expected to produce operating cash flows...
Jasper Metals is considering installing a new molding machine is expected to produce operating cash flows of $58,000 per year for 7 years. At the beginning of the project, inventory will decrease by $18,400, accounts receivables will increase by $22,200, and accounts payable will increase by $15,900. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $258,000. The equipment...
Cirice Corp. is considering opening a branch in another state. The operating cash flow will be...
Cirice Corp. is considering opening a branch in another state. The operating cash flow will be $197400 a year. The project will require new equipment costing $5,000 that would be depreciated on a straight-line basis to zero over the 4-year life of the project. The equipment will have a market value of $143,000 at the end of the project. The project requires an initial investment of $32,500 in net working capital, which will be recovered at the end of the...
Cirice Corp. is considering opening a branch in another state. The operating cash flow will be...
Cirice Corp. is considering opening a branch in another state. The operating cash flow will be $176,600 a year. The project will require new equipment costing $598,000 that would be depreciated on a straight-line basis to zero over the 5-year life of the project. The equipment will have a market value of $181,000 at the end of the project. The project requires an initial investment of $42,000 in net working capital, which will be recovered at the end of the...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $60,000 per year for 7 years. At the beginning of the project, inventory will decrease by $20,000, accounts receivables will increase by $23,000, and accounts payable will increase by $16,500. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $264,000. The...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $58,000 per year for 7 years. At the beginning of the project, inventory will decrease by $18,400, accounts receivables will increase by $22,200, and accounts payable will increase by $15,900. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $258,000. The...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash...
Jasper Metals is considering installing a new molding machine which is expected to produce operating cash flows of $61,000 per year for 7 years. At the beginning of the project, inventory will decrease by $20,800, accounts receivables will increase by $23,400, and accounts payable will increase by $16,800. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $267,000. The...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT