Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Highway Plaza is expanding and expects operating cash flows of $29,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 15 percent?

A. $18,477.29

B. $21,033.33

C. $28,288.70

D. $29,416.08

E. $42,509.63

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M942329

Have any Question? 


Related Questions in Basic Finance

Many states allow payday lending but impose restrictions on

Many states allow payday lending but impose restrictions on the practice. For example, a state may limit the amount someone can borrow or the number of times a loan can be rolled over. Find out whether payday lending is ...

Impact of foreign policies why might a foreign governments

Impact of Foreign Policies : Why might a foreign government's policies be closely monitored by investors in other countries, even if the investors plan no investments in that country? Explain how monetary policy in one c ...

Suppose you buy call options on microsoft stock each option

Suppose you buy call options on Microsoft stock. Each option costs $2 and has a strike price of $40 and an expiration date of July 1. Discuss whether you would exercise the options in each of the following situations, an ...

When monetary policymakers hit the zero When monetary policymakers hit the zero

When monetary policymakers hit the zero nominal-interest-rate bound with their policy rate, they have the option to turn to unconventional tools of monetary policy. How do these unconventional tools work, and why are pol ...

Regarding to capital structure calculate the following

Regarding to Capital Structure, calculate the following measures for three years of FLIGHT CENTRE AUSTRALIA 1. Capital structure (i.e., the percentage of debt and percentage of equity) 2. Cost of common equity and (if an ...

Carazona inc is a us firm that has a large subsidiary in

Carazona, Inc., is a U.S. firm that has a large subsidiary in Indonesia. It wants to finance the subsidiary's operations in Indonesia. However, the cost of debt is currently about 30 percent there for firms like Carazona ...

Discussion tesla-solarcitydeaon august 1 elon musk

Discussion: Tesla-SolarCityDea On August 1, Elon Musk announced that Tesla will buy SolarCity for $26Billion (that is 0.110 Tesla common share per SolarCityshare) http://www.wsj.com/articles/tesla-and-solarcity-agree-to- ...

A project has an initial requirement of 234703 for new

A project has an initial requirement of $234,703 for new equipment and $12,219 for net working capital. The fixed assets will be depreciated to a zero book value over the 3-year life of the project and have an estimated ...

1 determine the utilization and the efficiency for each of

1. Determine the utilization and the efficiency for each of these situations: a. A loan processing operation that processes an average of 7 loans per day. The operation has a design capacity of 20 loans per day and an ef ...

The fed and commercial paper why and how did the fed

The Fed and Commercial Paper : Why and how did the Fed intervene in the commercial paper market during the credit crisis?

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate