Lockheed Martin has secured a satellite launch contract from a European communications company that will pay them € 3.9M per year for the next 8 years . To land that contract , they invested € 13M in a satellite tracking system . Of that amount , €8M was paid up front and the remaining €5M was spent during the first year of operation . The annual operating costs for the satellite tracking system are estimated at € 0.9M per year ( which includes the cost of personnel , electricity , maintenance , etc. ) . At the end of the contract , it is estimated that the equipment will have a salvage value of € 0.5M . What is Lockheed Martin's internal rate of return ( IRR ) on this project ?
Lockheed Martin has secured a satellite launch contract from a European communications company that will pay them € 3.9M per year for the next 8 years . To land that contract , they invested € 13M in a satellite tracking system . Of that amount , €8M was paid up front and the remaining €5M was spent during the first year of operation . The annual operating costs for the satellite tracking system are estimated at € 0.9M per year ( which includes the cost of personnel , electricity , maintenance , etc. ) . At the end of the contract , it is estimated that the equipment will have a salvage value of € 0.5M . What is Lockheed Martin's internal rate of return ( IRR ) on this project ?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Lockheed Martin has secured a satellite launch contract from a European communications company that will pay them € 3.9M per year for the next 8 years . To land that contract , they invested € 13M in a satellite tracking system . Of that amount , €8M was paid up front and the remaining €5M was spent during the first year of operation . The annual operating costs for the satellite tracking system are estimated at € 0.9M per year ( which includes the cost of personnel , electricity , maintenance , etc. ) . At the end of the contract , it is estimated that the equipment will have a salvage value of € 0.5M . What is Lockheed Martin's
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ذخیره شده، 216 کیلوبایت
- ۱۰:۴۷
Lockheed Martin has secured a satellite launch
contract from a European communications company
that will pay them €3.9M per year for the next 8 years.
To land that contract, they invested €13M in a satellite
tracking system. Of that amount, €8M was paid up
front and the remaining €5M was spent during the first
year of operation. The annual operating costs for the
satellite tracking system are estimated at €0.9M per
year (which includes the cost of personnel, electricity,
maintenance, etc.). At the end of the contract, it is
estimated that the equipment will have a salvage value
of €0.5M. What is Lockheed Martin's internal rate of
return (IRR) on this project?
Transcribed Image Text:100
الله VPN
peq1.jpg →
ذخیره شده، 216 کیلوبایت
- ۱۰:۴۷
Lockheed Martin has secured a satellite launch
contract from a European communications company
that will pay them €3.9M per year for the next 8 years.
To land that contract, they invested €13M in a satellite
tracking system. Of that amount, €8M was paid up
front and the remaining €5M was spent during the first
year of operation. The annual operating costs for the
satellite tracking system are estimated at €0.9M per
year (which includes the cost of personnel, electricity,
maintenance, etc.). At the end of the contract, it is
estimated that the equipment will have a salvage value
of €0.5M. What is Lockheed Martin's internal rate of
return (IRR) on this project?
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