Aproject is expected to create operating cash flows of $22,500 a year for three years. the initial cost of the fixed assets is $50,000. these assets will be worthless at the end of the project. an additional $3,000 of net working capital will be required throughout the life of the project. what is the project's net present value if the required rate of return is 10%? (remember that the additional net working capital is entered as part of the initial investment and added to the last final cash flow in the third period)
a. $2,208.11
b. $2,954.17
c. $4,306.09
d. $5,208.11
e. $5,954.17

How do primary and secondary industries differ

According to maslow's hierarchy of needs theory, which of the following would be an issue that requires the fulfillment of a lower order need? a)the need for a challenging project at work. b)the need for a promotion at work. c) the need to locate your business in an area with a low crime rate. d)the need for a mentor to you ascend within the company. none of the above

If a firm plans to issue new stock, flotation costs (investment bankers' fees) should not be ignored. there are two approaches to use to account for flotation costs. the first approach is to add the sum of flotation costs for the debt, preferred, and common stock and add them to the initial investment cost. because the investment cost is increased, the project's expected return is reduced so it may not meet the firm's hurdle rate for acceptance of the project. the second approach involves adjusting the cost of common equity as follows: . the difference between the flotation-adjusted cost of equity and the cost of equity calculated without the flotation adjustment represents the flotation cost adjustment. quantitative problem: barton industries expects next year's annual dividend, d1, to be $1.90 and it expects dividends to grow at a constant rate g = 4.3%. the firm's current common stock price, p0, is $22.00. if it needs to issue new common stock, the firm will encounter a 6% flotation cost, f. assume that the cost of equity calculated without the flotation adjustment is 12% and the cost of old common equity is 11.5%. what is the flotation cost adjustment that must be added to its cost of retaine