# I need help with a business and finance assignment

Nov 21st, 2015
Steve1995
Category:
Price: \$10 USD

Question description

Based on the information provided below, compute the Net Present Value of the project (CO 3).  A Net Present Value Template is Attached.  (Hint: Don't forget to update the discount rate to the amount required for this project and add your cash flow numbers.)

Royal Dutch Shipping is planning on Investing \$1,600,000 to buy a freighter.  Prepare a net present value analysis based on the assumption that the freighter will be sold for 10% of its cost at the end of the year 5.  Assume a 10% cost of capital.  Annual operating cash flows for the project are:

Year 1:  \$380,000

Year 2:  \$390,000

Year 3:  \$400,000

Year 4:  \$410,000

Year 5:  \$420,000

Prepare a loan amortization schedule based on monthly payments for the \$1,600,000 if Royal Dutch Shipping can pay 10% down on a loan for \$1,600,000 and can get a loan for 6% interest for 10 years (do not include this in your Net Present Value computations.  This is a separate issue.  (CO 3).  (Hint:  www.bankrate.com/calculators/mortgages/amortization-calculator.aspx )

(Top Tutor) Daniel C.
(997)
School: Boston College

Studypool has helped 1,244,100 students

## Review from our student for this Answer

FratBro23
Nov 21st, 2015
"Excellent work as usual"

1827 tutors are online

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors