Go Back   The Finance Forums > Finance forums > Homework



Homework Get help with your finance related homework.

Reply
 
Thread Tools
  #1  
Old 07-11-2016, 01:27 AM
avc avc is offline
Junior Member
 
Join Date: Jul 2016
Posts: 1
Wink finance-- evaluate a project

a project is expected to have 2M revenue per year, beginning in year 1. the expense is expected to be 1M per year, escalating at CPI, 2.5%. The depreciation is 100K annually. Besides, expected capital expenditure is 500K per year, escalating at CPI, 2.5%. the cash tax rate is 40 per year. at the end of year 5, the project will be sold for 1M after tax. assuming the discount rate is 10%, what should we pay for the project?
Reply With Quote

Old Sponsors
  #2  
Old 05-23-2017, 09:21 AM
stephie stephie is offline
Junior Member
 
Join Date: May 2017
Posts: 16
Default Re: finance-- evaluate a project

wouldn't that be 900k? or am i missing something?
Reply With Quote

Reply

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off



» Boards




All times are GMT -4. The time now is 11:03 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2017, Jelsoft Enterprises Ltd.