Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Pappy’s Potato has come up with a new product, the Potato Pet (they are freeze-dried to last longer). Pappy’s paid $132,000 for a marketing survey to determine the viability of the product. It is felt that Potato Pet will generate sales of $587,000 per year. The fixed costs associated with this will be $191,000 per year, and variable costs will amount to 22 percent of sales. The equipment necessary for production of the Potato Pet will cost $644,000 and will be depreciated in a straight-line manner for the four years of the product life (as with all fads, it is felt the sales will end quickly). This is the only initial cost for the production. Pappy's has a tax rate of 30 percent and a required return of 13 percent.
- Calculate the payback period for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Payback period years?
- Calculate the NPV for this project. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
NPV $
- Calculate the IRR for this project. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
IRR %
The tax rate is 33 percent. What is the company's target debt-equity ratio?
"Risk has historically been defined as the uncertainty concerning the occurrence of loss."
Is the market price of the company's stock going up or down?- Is the company employing financial leverage to the advantage of the common stockholders?
The information presented here applies to questions 4, 5 and 6. You are financing the acquisition of a small office building with a 5-year commercial loan with 6% annual interest rate and a 20-year amortization period. If the amount borrowed is $1,25..
Compute the price of a 6.2 percent coupon bond with ten years left to maturity and a market interest rate of 8.0 percent.
Union local school district has bond outstanding with coupon rate of 3.7 percent paid semiannually and 16 years to maturity. What is the price of the bond?
Larkin could wait until the sales proceeds were received in August and November, hope the recent strengthening of the euro would continue, and sell the euros received for dollars in the spot market. Larkin estimates the cost of equity capital to be 1..
Suppose you sell a fixed asset for $128,000 when it's book value is $161,000. If your company's marginal tax rate is 28%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale)?
What does it mean that during certain times, money has a negative time value?
What is the company’s cost of equity? If the firm converts to 60 percent debt, what will its cost of equity be?
Dividend payments (not yield) on US stocks tend to ______.
The accounting break-even production quantity for a project is 5,799 units. The fixed costs are $92,640, the depreciation is $36,210, and the sales price per unit is $48.29. What is the variable cost per unit?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd