Corporate Finance Assignment/ Professional Essay Writers

Part 1: Suppose a project under consideration has the following stream of benefits and costs.

(a)Find the net present value of the project assuming a discount rate of 5%. Is the project worthwhile?

(b)Redo (a) assuming the discount rate is 10%. Would you recommend the project go forward?

(c)Suppose you have discovered that the benefits of the project have been overestimated and a more accurate assessment suggests that the benefit each year is half of the original estimate. Assuming a discount rate of 5%, would you recommend the project go forward in this case? Briefly explain your answer.

Part 2: The government is contemplating a project that protects a wilderness area. The project is expected to produce annual net benefits of $100,000 into perpetuity. Assuming a discount rate of8%, what is the net present value associated with this project?  Get FInance Help Today