Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

An investment with total costs of $10,000 will generate total revenues of $11,000 for one year. Management thinks that since the investment is profitable, it should be made. Do you agree? What additional information would you want? If funds cost 12%, what would be your advice to management? Would your answer be different if the cost of capital is 8%?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M9879168

Have any Question?


Related Questions in Basic Finance

Skyco corporation is considering a project with the

SkyCo Corporation is considering a project with the following expected NOCF's: Year   NOCFt 1 $390,000 2 $410,000 3 $385,000 A)  If the firm's WACC is 12.1%, and the project costs $850,000, what is the NPV? B)  What is t ...

With its current leverage cowcow copr will have net income

With its current leverage, COWCOW copr will have net income next year of $7 million. If COWCOWs corporate tax rate is 30% and it pays 7% interest on its debt, how much debt can COWCOW issue this year and still receive th ...

Many drivers operate vehicles either without insurance or

"Many drivers operate vehicles either without insurance or with very low liability insurance limits. They often are in no position to pay for the damage they cause". Is this fair and should society take any action in thi ...

Ebeneezer scrooge jasper currently manages a 500000

Ebeneezer Scrooge Jasper currently manages a $500,000 portfolio. He is expecting to receive an additional $250,000 from a new client. The existing portfolio has a required return of 10.75 percent. The risk-free rate is 4 ...

Time value of money problem - future valuean amount of 160

TIME VALUE OF MONEY Problem - Future Value An amount of $160, 000 was invested on Jan 1, 2011 by a relative of your colleague for 2 years at the annual rate of 9.4% compounded quarterly. But in Jan 1, 2012 the terms of t ...

Set up and solve a valuation for thew following

Set up and solve a valuation for thew following non-constant growth stock: A stock will pay a $2.00 dividend in year 1. It will grow at 2% for years 2 and 3, and then at 4% for years 4 and 5, then at 5% thereafter. The i ...

Suppose that you wish to buy stock and protect yourself

Suppose that you wish to buy stock and protect yourself against DOWNSIDE MOVEMENT IN ITS PRICE. You consider both a covered call and a protective put. What factors will affect your decision?

Discuss the legal ethical and economic-social implications

Discuss the legal, ethical, and economic-social implications of the below case study. Someone you know has knowledge of an outstanding merger between two companies. The combination of the two firms will certainly change ...

What is marketing discipline what is most peoples

What is marketing discipline? What is most people's perception of marketing discipline? Name an organization that has done a great job marketing. What did they do to make you feel this way?

Question -1 go to treasurydirect website and find the

Question - 1. Go to TreasuryDirect website and find the competitive auction results for the 9 year 11 month Treasury Notes that were auctioned on 9/12/2017 and identify the price plus accrued interest that successful bid ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As