- +44 141 628 6080
- [email protected]

Estimating npv

Question: Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,313,519 and have a life of five years and would produce the cash flows shown in the following table.

Year Cash Flow

1 $391,444

2 -239,313

3 885,750

4 848,808

5 671,095

What is the NPV if the discount rate is 12.37 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)

NPV is $

Expected delivery within 24 Hours

1926629

Questions

Asked

3,689

Active Tutors

1446274

Questions

Answered

**
Start Excelling in your courses, Ask a tutor for help and get answers for your problems !! **

Â©TutorsGlobe All rights reserved 2022-2023.

## Q : Estimate weighted average cost of capital

Please calculate the weights (proportions) of debt and equity for British Petroleum (BP). For equity you can use the market value of stock (number of shares times the current stock price).