Question

Gomi waste disposal is evaluating a project that would last 4 years. The projects internal rate...

Gomi waste disposal is evaluating a project that would last 4 years. The projects internal rate of return is 7.88 percent; its NPV is 5,150 dollars; and the expected cash flows are -74,200 dollars at 0, 16,600 dollars in 1 year, 57,600 dollars in 2 years, and X in 4 years. What is X?

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
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 135,000 dollars today. During year 1, the project is expected to have relevant revenue of 120,000 dollars, relevant costs of 47,000 dollars, and relevant depreciation of 23,000 dollars. Gomi Waste Disposal would need to borrow 135,000 dollars today to pay for the equipment and would need to make an interest payment of 9,000 dollars to the bank in 1 year. Relevant net...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 164,000 dollars today. During year 1, the project is expected to have relevant revenue of 112,000 dollars, relevant costs of 35,000 dollars, and relevant depreciation of 15,000 dollars. Gomi Waste Disposal would need to borrow 164,000 dollars today to pay for the equipment and would need to make an interest payment of 3,000 dollars to the bank in 1 year. Relevant net...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 171,000 dollars today. During year 1, the project is expected to have relevant revenue of 119,000 dollars, relevant costs of 40,000 dollars, and relevant depreciation of 13,000 dollars. Gomi Waste Disposal would need to borrow 171,000 dollars today to pay for the equipment and would need to make an interest payment of 9,000 dollars to the bank in 1 year. Relevant net...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of...
Gomi Waste Disposal is evaluating a project that would require the purchase of a piece of equipment for 157,000 dollars today. During year 1, the project is expected to have relevant revenue of 107,000 dollars, relevant costs of 36,000 dollars, and relevant depreciation of 27,000 dollars. Gomi Waste Disposal would need to borrow 157,000 dollars today to pay for the equipment and would need to make an interest payment of 3,000 dollars to the bank in 1 year. Relevant net...
1. Fairfax Pizza is evaluating a 1-year project that would involve an initial investment in equipment...
1. Fairfax Pizza is evaluating a 1-year project that would involve an initial investment in equipment of 22,100 dollars and an expected cash flow of 24,800 dollars in 1 year. The project has a cost of capital of 8.95 percent and an internal rate of return of 12.22 percent. If Fairfax Pizza were to use 22,100 dollars in cash from its bank account to purchase the equipment, the net present value of the project would be 663 dollars. However, Fairfax...
Blue Eagle Banking is evaluating a 1-year project that would involve an initial investment in equipment...
Blue Eagle Banking is evaluating a 1-year project that would involve an initial investment in equipment of 34,900 dollars and an expected cash flow of 36,600 dollars in 1 year. The project has a cost of capital of 4.18 percent and an internal rate of return of 4.87 percent. If Blue Eagle Banking were to use 34,900 dollars in cash from its bank account to purchase the equipment, the net present value of the project would be 231 dollars. However,...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected...
Middlefield Motors is evaluating a project that would cost 6,200 dollars today. The project is expected to have the following other cash flows: 2,350 dollars in 1 year, -2,480 dollars in 3 years, and 7,540 dollars in 4 years. The cost of capital of the project is 5.64 percent. What is the net present value of the project? They are also evaluating a project that would cost 4,360 dollars today. The project is expected to produce annual cash flows of...
Orange Valley Recycling is considering a project that would last for 3 years and have a...
Orange Valley Recycling is considering a project that would last for 3 years and have a cost of capital of 15.69 percent. The relevant level of net working capital for the project is expected to be 16,000 dollars immediately (at year 0); 8,000 dollars in 1 year; 39,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the...
Middlefield Motors is considering a project that would last for 3 years and have a cost...
Middlefield Motors is considering a project that would last for 3 years and have a cost of capital of 17.12 percent. The relevant level of net working capital for the project is expected to be 20,000 dollars immediately (at year 0); 13,000 dollars in 1 year; 37,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the following...
Violet Sky Food is considering a project that would last for 3 years and have a...
Violet Sky Food is considering a project that would last for 3 years and have a cost of capital of 14.24 percent. The relevant level of net working capital for the project is expected to be 17,000 dollars immediately (at year 0); 6,000 dollars in 1 year; 27,000 dollars in 2 years; and 0 dollars in 3 years. Relevant expected operating cash flows and cash flows from capital spending in years 0, 1, 2, and 3 are presented in the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT