Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

problem: Draconian Measures, Inc., is estimating two independent projects. The company uses a 13.8% discount rate for such projects. Cost & Cash flows are shown in the following table. find out the NPVs of the two projects?

Year

Cash flows

Project 1

Project 2

0

 mce_markernbsp;      (8,425,375)

 $ (11,368,000)

1

 mce_markernbsp;         3,225,997

 $ 2,112,589

2

 mce_markernbsp;         1,775,882

 $ 3,787,552

3

 mce_markernbsp;         1,375,112

 $ 3,125,650

4

 mce_markernbsp;         1,176,558

 mce_markernbsp; 4,115,899

5

 mce_markernbsp;         1,212,645

 mce_markernbsp; 4,556,424

6

 mce_markernbsp;         1,582,156

 

7

 mce_markernbsp;         1,365,882

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M918640

Have any Question? 


Related Questions in Basic Finance

1 what is the base salary of the international assignee2

1. What is the base salary of the international assignee? 2. How much is the G&S differential and how was it calculated? 3. How much is the housing differential and how was it calculated? 4. What type of allowance did th ...

Suppose your firm had issued a 12 percent annual coupon

Suppose your firm had issued a 12 percent annual coupon, 15-year bond, callable at par at the 8th year. It is now two years later, so the bonds are not callable for another 6 years. At this time, new bonds could be issue ...

1 the following data are for zero coupon treasury bonds

1. The following data are for zero coupon treasury bonds each with a face value of $1000. They are to be used for all parts of this question. Maturity   Price 1 Year 968 2 Year 940 3 year 921 a. What is the three year sp ...

A project is expected to create operating cash flows of

A project is expected to create operating cash flows of $29,000 a year for three years. The initial cost of the fixed assets is $60,000. These assets will be worthless at the end of the project. An additional $4,000 of n ...

1 distinguish between the four types of relational

1. Distinguish between the four types of relational collaborative arrangements. Provide an example of each. 2. What do you believe will be the impact of the Internet on market distribution by 2010? 3. What is a shippers ...

1 how has the mne evolved how have the changes in mnes

1. How has the MNE evolved? How have the changes in MNEs affected HR? 2. What are the various choices that MNEs have for entry into IB? How do the functions of HR vary with these various choices? 3. How can IHR help to e ...

1 consider the four principles of ethical research with

1. Consider the four principles of ethical research with human participants outlined in the chapter. What procedures are used by behavioral scientists to help ensure that their research conforms to these principles? 2. W ...

What exactly is a homemade dividend does this concept

What exactly is a homemade dividend? Does this concept lessen the importance of dividend policy?

Sixx am manufacturing has a target debt-equity ratio of 065

Sixx AM Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 15 percent, and its cost of debt is 10 percent. If the tax rate is 32 percent, what is the company's WACC?

Explain the analogy relating irrigation flows to flows of

Explain the analogy relating irrigation flows to flows of funds in the financial system. What happens to a farmer when irrigation water dries up? What happened to businesses in the United States when the flow of funds dr ...

  • 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

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen