Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Project Management Expert

I have the asset that I am thinking of for project which will last for 5 years. If I invest in project, I have the option to abandon and sell asset in year 2.

Purchase Price $50,000
Abandonment Selling Price in Year 2 $25,000
Cost of Capital 12%

Year 1 Year 2 Year 3 Year 4 Year 5
Free Cash Flow Forecast
35% $6000 $80000 $10000 $14000 $22000
40% $2500 $4700 $8600 $10000 $17000
25% $(3000) $(4500) $(5600) $(6500) $4000

Determine the value of abandonment option?

 

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M933580

Have any Question? 


Related Questions in Project Management

He has heard of eoq as a basis for setting the length of

He has heard of EOQ as a basis for setting the length of production runs. What values should he assign to cp and cH for his operations?

1 what is a line extension and how does it differ from a

1. What is a line extension, and how does it differ from a product modification? 2. Compare and contrast the three major approaches to modifying a product. 3. Identify and briefly explain the seven major phases of the ne ...

Summarize what you have learned regarding personal case and

Summarize what you have learned regarding personal case and what you believe should be the actions taken next to either make the change successful, permanent, or put it back. Paper should be a minimum of 1500 words in le ...

Communicating project risksassignmentin previous weeks you

Communicating Project Risks Assignment: In previous weeks, you selected a project around which to develop your Risk Management Strategy and Plan Key Assignment. In Week 1, you crafted a letter to the project sponsor expl ...

Visit the website wwwcovisintcom and evaluate the nature of

Visit the website www.covisint.com, and evaluate the nature of the business customers attracted. Who is the target audience for this business marketing site? Describe the types of firms that are currently doing business ...

Assessmentnote the assessments in this course build upon

Assessment Note: The assessments in this course build upon each other, so you are strongly encouraged to complete them in sequence. Write a paper evaluating a project failure. (You can use a project you have worked on as ...

Getting on the right track at general motorsour data tells

GETTING ON THE RIGHT TRACK AT GENERAL MOTORS "Our data tells us that the vehicle owners that don't have a satisfactory dealership repair experience are only half as likely to buy that model car again." Think about the ra ...

Assignmentat times a project manager must evaluate

Assignment At times, a project manager must evaluate proposals from identified vendors and make decisions based on the project budget and schedule. It is essential to determine how the organization will determine the bes ...

List and describe three functions that the issp serves in

List and describe three functions that the ISSP serves in the organization? What should be the first component of an ISSP when it is presented? Why? What should be the second major component? Why? List and describe three ...

A local health club is running a promotional campaign that

A local health club is running a promotional campaign that promises you can lose an inch a month off your waist if you join the club and follow its program. How might this claim cause a communications gap? What should th ...

  • 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