Question

Rossdale Flowers has a new greenhouse project with an initial cost of $319,500 that is expected...

Rossdale Flowers has a new greenhouse project with an initial cost of $319,500 that is expected to generate cash flows of $47,100 for 9 years and a cash flow of $62,500 in Year 10. If the required return is 8.9 percent, what is the project's NPV?

$105,241.20

-$15,893.27

−$9,328.17

$10,750.84

$83,375.17

Homework Answers

Answer #1
Year Cashflows PVF at 8.90% Present Value
0 -319500 1 -319500
1 47100 0.918274 43250.69
2 47100 0.843226 39715.97
3 47100 0.774313 36470.13
4 47100 0.711031 33489.56
5 47100 0.652921 30752.58
6 47100 0.59956 28239.28
7 47100 0.55056 25931.39
8 47100 0.505565 23812.11
9 47100 0.464247 21866.03
10 62500 0.426306 26644.11
Net Present value -9328.17
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
Rossdale Flowers has a new greenhouse project with an initial cost of $362,000 that is expected...
Rossdale Flowers has a new greenhouse project with an initial cost of $362,000 that is expected to generate cash flows of $47,500 for 11 years and a cash flow of $62,900 in Year 12. If the required return is 8.9 percent, what is the project's NPV?
9.Rossdale Flowers has a new greenhouse project with an initial cost of $321,000 that is expected...
9.Rossdale Flowers has a new greenhouse project with an initial cost of $321,000 that is expected to generate cash flows of $44,700 for 9 years and a cash flow of $60,100 in Year 10. If the required return is 7.7 percent, what is the project's NPV?
Rossdale Flowers has a new greenhouse project with an initial cost of $371,500 that is expected...
Rossdale Flowers has a new greenhouse project with an initial cost of $371,500 that is expected to generate cash flows of $46,500 for 12 years and a cash flow of $61,900 in Year 13. If the required return is 8.6 percent, what is the project's NPV? ?$15,800.21 $119,279.50 ?$10,531.16 $5,378.66 $102,001.43
A project with an initial cost of $56,400 is expected to provide annual cash flows of...
A project with an initial cost of $56,400 is expected to provide annual cash flows of $17,100 over the 7-year life of the project. If the required return is 9 percent, what is the project's profitability index?
A project with an initial cost of $57,200 is expected to provide annual cash flows of...
A project with an initial cost of $57,200 is expected to provide annual cash flows of $10,950 over the 9-year life of the project. If the required return is 9.2 percent, what is the project's profitability index?
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset...
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.916 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $226,800. The project requires an initial investment in net working capital of $324,000. The project is estimated to generate $2,592,000 in annual sales, with costs of $1,036,800. The tax rate is 31 percent and the required...
A project with an initial cost of $59,600 is expected to provide annual cash flows of...
A project with an initial cost of $59,600 is expected to provide annual cash flows of $10,450 over the 7-year life of the project. If the required return is 8.3 percent, what is the project's profitability index?
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.5 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $268,800 after 3 years. The project requires an initial investment in net working capital of $384,000. The project is estimated to generate $3,072,000 in annual sales, with costs of $1,228,800. The tax rate is 22 percent and the required return on the project...
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment...
Quad Enterprises is considering a new 3-year expansion project that requires an initial fixed asset investment of $2.5 million. The fixed asset falls into the 3-year MACRS class (MACRS Table) and will have a market value of $197,400 after 3 years. The project requires an initial investment in net working capital of $282,000. The project is estimated to generate $2,256,000 in annual sales, with costs of $902,400. The tax rate is 21 percent and the required return on the project...
Elise will open a greenhouse shop in 2021 where she will sell small plants and flowers...
Elise will open a greenhouse shop in 2021 where she will sell small plants and flowers to       customers for their gardens. The construction of the greenhouse will cost $300,000 with       installation cost of $25,000. She estimates that annually she will generate after-tax cash      flows of $67,000 for 7 years. If her required rate of return is 13%, what is the project’s      profitability index? Should she invest in this project?     
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT