Thursday
August 28, 2014

Homework Help: Finance

Posted by anonymous on Friday, March 28, 2014 at 10:38pm.

10. A new factory at Arcata requires an initial outlay of $3.5 million to be paid immediately. The factory will last for eight additional years, after which it can be sold for a salvage value of $2,000,000. Sales will be $800,000 during the first year of operation and will grow at a rate of 9 percent a year after that. Variable costs will be 30 percent of sales and fixed costs will be $150,000 and grow at a rate of 5% per year. All costs are in cash. Assume cash flows occur at year-end. At a 6 percent required return. (Ignore taxes) The net present value of this project and is?

Answer this Question

First Name:
School Subject:
Answer:

Related Questions

finance - A company wants to build a new factory for increased capacity. Using ...
Finance - A company wants to build a new factory for increased capacity. Using ...
Corporate Finance - A company wants to build a new factory for increased ...
Finance - Rock Company acquired land 8 years ago for 2.2 million. Today it is ...
Finance - It's January 1, 2011. Company XYZ wants to build a teddy bear factory...
History - Imagine you are one of the factory workers at Lowell Mills tasked with...
Business Finance - Rita won $60 million lottery. She is to receive $1 million a ...
math - alright.. this is the linear programming question i got.. JJ ...
maths linear programming - alright.. this is the question i got.. JJ ...
Geography - You need to open a new clothing factory to keep up with the demand ...

Search
Members