Principals of Finance Final Project : PRESENT VALUE sample

May 12th, 2015
Studypool Tutor
Price: $10 USD

Tutor description

Power Co., is looking to install a new generator for their power company because the demand is so high. The company plans to be completed with the project in 10 years, and will last for 10 years, or possibly longer. The companies cost of capital is 8%, and I will look to determine if this project is worth embarking on.

Word Count: 623
Showing Page: 1/3
Finance Final ProjectMichael Mirek Principals of Finance Final ProjectPower Co., is looking to install a new generator for their power company because the demand is so high. The company plans to be completed with the project in 10 years, and will last for 10 years, or possibly longer. The companies cost of capital is 8%, and I will look to determine if this project is worth embarking on. To determine this I will answer these 4 questions. 1. What is the present value of the expected costs? 2. What is the present value of the expected after-tax cash profits? 3. What is the expected net present value (the difference between the PVs of the inflows and outflows)? What does this number represent? 4. What are the risks inherent in deciding to build the facility? How would each of the risks affect the decision to build the facility? 5. Should PowerCo build the plant? Why or why not? The fi

Review from student

Studypool Student
" excellent work as always thanks for the help "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1822 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