54 513
Assignments Done
98,4%
Successfully Done
In November 2017
Your physics homework can be a real challenge, and the due date can be really close — feel free to use our assistance and get the desired result.
Be sure that math assignments completed by our experts will be error-free and done according to your instructions specified in the submitted order form.
Our experts will gladly share their knowledge and help you with programming homework. Keep up with the world’s newest programming trends.

Answer on Finance Question for Samuel

Question #40203
A smooth saleperson comes to visit your office with a proposal to sell your firm some new machinery to install in your vacant warehouse building on the property that has no alternative use. The salesperson claims that this technology produces products that should provide you with revenues next year of $7 million with a cost of goods to be $5 million. Both of these are expected to grow at a rate of 15% per year till year 6. Your firm faces a 35% tax rate, a 12% discount rate and you can depreciate your new investment using the straight line method over the six years, at which point the value of the venture moving forward will be $2 million. (This $2 million is the terminal value that is in year 6 dollars and is the PV of all cash flows year 7 and beyond.) The capital expenditure of this project is $6M. What is the NPV of the project? Assume that you have no significant working capital costs.(Enter just the number without the $ sign or a comma; round off decimals.) (You are strongly encouraged to use a spreadsh
Expert's answer

Need a fast expert's response?

Submit order

and get a quick answer at the best price

for any assignment or question with DETAILED EXPLANATIONS!

Comments

Assignment Expert
04.07.2014 10:11

Dear Mehmonov,
Thank you for showing the mistake. We will do our best to improve the work!

Mehmonov
01.07.2014 12:56

The answer that given by expert is totally wrong. she/he had a mistake on terminal value and depreciation.

Leave a comment

Ask Your question