subject
Business, 05.07.2021 14:00 consueloquintan1

The Dollar company is interested in a new potential project. The initial cost for the project is $150,000. The company has decided to obtain 40% funds through equity, 10% of funds can be taken out from company’s reserves and remaining 50% through a long-term loan. Cost of raising funds through equity is 10%, whereas cost of raising funds through debt is 8%. Tax rate is 20%. If company invests in this project, it can receive $ 40,000 each year for the next 5 years. As a manager you have been given responsibility to evaluate feasibility of the project. Use NPV, PBP and IRR to help company reach decision.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 11:50
Select the correct answer. ramon applied to the state university in the city where he lives, but he was denied admission. what should he do now? a.change his mind about graduating and drop out of high school so he can start working right away. b. decide not to go to college, because he didn’t have a backup plan. c.stay positive and write a mean letter to let the college know that they made a bad decision. d. learn from this opportunity, reevaluate his options, and apply to his second and third choices.
Answers: 2
question
Business, 22.06.2019 13:30
You operate a small advertising agency. you employ two secretaries, a graphic designer, three sales representatives, and an office coordinator. 1. what types of things would you consider when determining how to compensate each position? describe two (2) considerations. 2. what type of compensation plan would you use for each position?
Answers: 1
question
Business, 22.06.2019 13:30
Tom has brought $150,000 from his pension to a new job where his employer will match 401(k) contributions dollar for dollar. each year he contributes $3,000. after seven years, how much money would tom have in his 401(k)?
Answers: 3
question
Business, 22.06.2019 14:30
If a product goes up in price, and the demand for it drops, that product's demand is a. elastic b. inelastic c. stable d. fixed select the best answer from the choices provided
Answers: 1
You know the right answer?
The Dollar company is interested in a new potential project. The initial cost for the project is $15...
Questions
question
Mathematics, 23.06.2021 07:20
question
Mathematics, 23.06.2021 07:20
question
History, 23.06.2021 07:20
question
Mathematics, 23.06.2021 07:20
Questions on the website: 13722363