A current firms cost per unit on a product is 087 it will

Assignment Help Finance Basics

Reference no: EM13385700

1 Cash flows for an expansion- the discount rate is 9.3%, the initial outlay would be $1,970,000, and cash flow of $460,000 per yr. for 6 yrs.

a. Calculate the present value

b. calculate the profitability index

c. round NPV of the expansion is $ (round to the nearest dollar).

#2 Initial cash outlay of 79,000, expected cash flows of 25,280 at the end of each yr. for 6 yrs.

a. The payback period of the project is ? years.(round to nearest 2 decimals)

b. what is the project NPV?

c. what is the project PI?

d. what is the project IRR?

#3 a new project annually generates revenues of 1,800,000 and cash expenses include fixed and variable of 900,000, depreciation is increased by 160,000 per yr. The tax rate is 37%.

a. what is the firm's cash flow $ ? (round to nearest dollar)

#4 A product line - can sell 12,000 items each year for 10yrs. The skateboards are $80 w/variable cost of $45 and annual fixed cost assoc. with production would be $150,000. In addition an initial expenditure of 1,000,000 and will depreciate using simplified method down to 0 over 10yrs. The project will also have a 1 time investment of 40,000 in working capital. The firms marginal tax rate is 36%

a. what is the initial cash outlay assoc. with this project?

b. what are the annual net cash flows assoc. for yrs 1-9?

c. what is the terminal cash flow in year 10?

d. what is the projects NPV given a required rate of return at 11%?

#5 A Current firm's cost per unit (on a product) is $0.87, it will rise at the rate of 15% annually over 3yrs. Current selling unit price is $0.97 and is expected to rise at a 4% annual rate. If a manager expects to sell 5.5, 6.8, and 8 million units for the next 3 years-

a. What is gross profit or (loss) for 1yr? (round to nearest dollar)

#6 NPV, PI, IRR calculations -

Cash flows for an expansion

Discount rate is 9.3%, initial outlay would be 1,970,000, and cash flow of 460,000 per yr for 6 yrs.

a. calculate the net present value

b. calculate the profitability index

c. round NPV of the expansion is $?

#7 Initial cash outlay of 79,000, expected cash flows of 25,280 at the end of each yr for 6yrs.

a.The payback period of the project is ? years (round off to 2 decimals)

b.what is the projects NPV?

c. what is " " PI?

d. what is " " IRR?

Reference no: EM13385700

Questions Cloud

Addition of small amounts of oxaloacetate or malate to : addition of small amounts of oxaloacetate or malate to suspensions of minced pigeon-breast muscle stimulated the oxygen

Will issue new common stock to finance an expansion the : given the following annual net cash flows determine the internal rate of return to the nearest whole percent of a

A steel reaction vessel has a movable piston that is set to : a steel reaction vessel has a movable piston that is set to allow an enclosed sample of gas expandnbspand contract

Magnesium powder reacts with steam to form magnesium : magnesium powder reacts with steam to form magnesium hydroxide and hydrogen gas. what is the pecentage yield of 10.1g

A current firms cost per unit on a product is 087 it will : 1 cash flows for an expansion- the discount rate is 9.3 the initial outlay would be 1970000 and cash flow of 460000 per

Codeine c18h21no3 a commonly prescribed painkiller is a : codeine c18h21no3 a commonly prescribed painkiller is a weak base.nbspnbspa saturated aqueous solution contains 1.00

Potassium weighing 391 grams was carefully placed in a 1 : potassium weighing 3.91 grams was carefully placed in a 1 liter beaker filled with water. all of the potassium reacted

A gas occupies a volume of 458 ml at a pressure of 101kpa : a gas occupies a volume of 458 ml at a pressure of 1.01kpa abd temperature of 295 k. when the pressure is changed the

A laboratory animal exercised on a treadmill that was : a laboratory animal exercised on a treadmill that was connected to a weight with a mass of 256 g through a pulley. the

User Account

All Pages