Ask Experts Questions for FREE Help !
Ask
    ioachidi_e's Avatar
    ioachidi_e Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jun 27, 2007, 12:20 AM
    Need to find NPV
    Returns on the market and Takeda Company’s stock during the last 3 years are shown below:

    Year Market Takeda
    1 -12% -14%
    2 23 31
    3 16 10

    The risk-free rate is 7 percent, and the required return on the market is 12 percent. Takeda is considering a project whose market beta was found by adding 0.2 to the company’s overall corporate beta. Takeda finances only with equity, all of which comes from retained earnings. The project has a cost of $100 million, and it is expected to provide cash flows of $20 million per year at the end of Years 1 through 5 and then $30 million per year at the end of Years 6 through 10. What is the project’s NPV
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
    		  
    #2

    Jun 27, 2007, 12:21 AM
    Please refer to THIS ANNOUNCEMENT
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

How do you calculate net present value NPV [ 2 Answers ]

How do you calaulate NPV NPV = $60 + $60 __________ - $100 (1+r) (1 +r)2 investment cost $100 expected result in revenues of $60 in 2 years r = 0.10

NPV,PI, and IRR calculations [ 1 Answers ]

I am considering a major expansion of a product line hand and have estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate from cash flows of $450,000 per year for six years. The...

Npv,pi, and irr calculations [ 1 Answers ]

I am considering a major expansion of a product line hand and have estimated the following free cash flows associated with such an expansion. The initial outlay associated with the expansion would be $1,950,000, and the project would generate from cash flows of $450,000 per year for six years. The...

View more questions Search