Reference no: EM13972519
1. A project costing $1 million is expected to save $300,000/yr for 4 years. What is the simple payback, NPV, and IRR.
2. Would you prefer to invest in a project with a high IRR, or low IRR? Why?
3. A construction company is considering spending $100,000 in some new safety equipment. Where would it expect to see some savings that it could put into the capital budgeting analysis?
4. A share of common stock is selling for $20; its most recent dividend was $1, and dividends have been growing at 5%. If I am willing to pay the $20, what does that imply my E[r] is?
5. A 6%, $1000, 30 year bond, that was issued 10 years ago, is selling for $980. If I 'm willing to pay that much, what does that mean my E[r] or YTM is?
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What is operating cash flow according to tax shield approach
: A project has annual depreciation of $14,200, costs of $80,900, and sales of $105,500. The applicable tax rate is 30.6 percent. What is the operating cash flow according to the tax shield approach?
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Discuss the different gang treatment programs
: Write a 2-3 page paper discussing gang prevention, suppression, and treatment programs. Be sure to address the following: Compare the success rate of both methods. Discuss the different gang treatment programs
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Side effects of adding new product to its sales offerings
: Outdoors sells specialty tents for mountain climbers. Its sales for last year included $99,000 of tents and $148,000 of climbing gear. For next year, management has decided to sell specialty sleeping bags also. As a result of this change, sales proje..
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Define incremental cash flow
: Shrieves Casting Company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by Sidney Johnson, a recently graduated MBA. The production line would be set up in unused space in Shrieves’s main pl..
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A construction company is considering spending
: A construction company is considering spending $100,000 in some new safety equipment. Where would it expect to see some savings that it could put into the capital budgeting analysis?
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Project is expected to generate revenues
: A 5-year project is expected to generate revenues of $85,000, variable costs of $61,000, and fixed costs of $11,000. The annual depreciation is $6,200 and the tax rate is 38.7 percent. What is the annual operating cash flow?
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Determine power that motor must supply to the crate instant
: Considering the coefficient of kinetic friction, μ= 0.15, determine the power that the motor must supply to the crate the instant the crate travels a distance of 4.5m .
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How much did change in wacc affect projects forecasted npv
: Lasik Vision Inc. recently analyzed the project whose cash flows are shown below. However, before Lasik decided to accept or reject the project, the Federal Reserve took actions that changed interest rates and therefore the firm's WACC. The Fed's act..
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