Reference no: EM132471889
Point 1: Here is a scenario that I must compute. Please help advise how one would obtain this information and how to explain it in an essay. This is all the info that is given, and Must calculate the NPV, IRR, payback period, and profitability index.
Point 2: You work as a finance manager for Drill Tech, Inc., a mid-sized manufacturing company located in Minnesota. In the meeting to discuss capital projects, the director of finance (and your boss), Jennifer Davidson, gives you a synopsis of the projects along with this question:
Question 1: Which one of these projects will provide the most shareholder value to the company?
She also tells you that other than what is noted in each project scenario, all other costs will remain constant, and you should remember to only evaluate the incremental changes to cash flows.
Project Marketing/Advertising Campaign
- A major new marketing/advertising campaign, which will cost $2 million per year and last 6 years.
- It is forecast that the campaign will increase sales/revenues and costs of sales by 15% per year.
- Annual sales for the previous year were $20 million.
- The marginal corporate tax rate is presumed to be 25%.
- Being a moderate risk investment, the required rate of return of the project is 10%.
Question 2: Calculate the NPV and IRR for this equation in excel?
|
Research the impact of a specific technology on auditing
: Research the impact of a specific technology on auditing, how auditors can better adapt to take advantage of these opportunities. Support your suggestions
|
|
Describe major financial business transaction of the company
: Analyze current events for their impact on this company's risk and internal control in the future. Include documentation of these current events.
|
|
What is the total amount of contributed capital at December
: Less: Treasury stock (3,000 common shares at cost) 61,500 and Retained earnings 70,000. What is the total amount of contributed capital at December
|
|
Identify in the sales processing subset of the revenue cycle
: Based on the deficiencies in the design of controls identified in the sales processing subset of the revenue cycle as explained in the first two paragraphs
|
|
Calculate the npv and irr for the equation in excel
: Calculate the NPV and IRR for this equation in excel? Determine one of these projects will provide the most shareholder value to the company?
|
|
Compute Taylors net unearned income
: For 2019, she has the following income: $3,400 wages from a summer job, Compute Taylor's "net unearned income" for the purpose of the kiddie tax
|
|
Why is cash called the lifeblood of any company
: Why is cash called the lifeblood of any company? What controls are put in place by the best companies to maximize their cash flow?
|
|
Create an income statement
: Guy McKinley started the McKinley Charter Service at the beginning of August 2019. Create an income statement and a statement of owner's equity for the month
|
|
What amount of dividends were paid during the month
: The company earned net income of $18,000. If stockholders' equity at October 31 totals $78,000, what amount of dividends were paid during the month?
|