Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Microeconomics Expert

Economics


Home >> Microeconomics

A firm has the opportunity to invest in a project having an initial outlay of $20,000. Net cash inflows before depreciation and taxes are expected to be $5,000 per hear for five years. The firm has a marginal income-tax rate of 40%. The firms cost of capital is 12%. Compute the internal rate of treturn and the net present value. Should the firm accept or reject the project?

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M952672

Have any Question?


Related Questions in Microeconomics

Question when discussing the pin makers we brought up

Question: When discussing the pin makers we brought up marketing cooperatives like Sunkist Oranges. Unlike the pin makers, orange growers control Sunkist's policies by their votes (weighted by their shipment volumes), fo ...

Question materiality and risk dag nilsson auktoriserad

Question: Materiality and Risk. Dag Nilsson, Auktoriserad Revisor (AR), considers the audit risk at the financial statement level in the planning of the audit of the financial statements of Lycksele Lappmark Bank (LLB) i ...

Question discuss how recessionary and inflationary gaps may

Question: Discuss how recessionary and inflationary gaps may restore full employment according to the Keynesian perspective. show the appropriate graph to support your explanation. The response must be typed, single spac ...

Question assume that workers whose incomes are less than

Question: Assume that workers whose incomes are less than $10,000 currently pay no federal income taxes. Suppose a new government program guarantees each worker $5000, whether or not he or she earns any income. For all e ...

Question the northern community of assiniboine narrows has

Question: The northern community of Assiniboine Narrows has a population of 12,000. It has one medical clinic with three doctors, each working 40 hours per week. Each doctor sees four patients per hour. The clinic would ...

Question why does the assumption of independence of risks

Question: Why does the assumption of independence of risks matter in the examples of insurance? What would happen to premiums if the probabilities of houses burning were positively correlated? Can you think of a situatio ...

Question the us economy slowed down sharply in the latter

Question: The US economy slowed down sharply in the latter half of 2000, and the actual recession started early in 2001. Monetary policy eased sharply throughout 2001, and for the first half of the year, fiscal policy di ...

Question for purposes of this paper and the next portion of

Question: For purposes of this paper and the next portion of your marketing project, pretend that you will be opening one of the following businesses in your area: • Food Truck Vendor • Animal Sitting • Bicycle Repair Sh ...

Question in principle the benefits of international trade

Question: In principle, the benefits of international trade to a country exceed the costs, no matter whether the country is importing or exporting. In practice, it is not always possible to compensate the losers in a cou ...

Question does money has opportunity costs and if so why

Question: Does money has opportunity costs? And if so why still people hold money?How can we determine monetary demand in respect to income? The response must be typed, single spaced, must be in times new roman font (siz ...

  • 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

Follow Us

© Copyright 2013-14 mywordsolution.com All rights reserved