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!
The Dante Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 38 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 29,000 Sales revenue $ 15,000 $ 15,500 $ 16,000 $ 13,000 Operating costs 3,200 3,300 3,400 2,600 Depreciation 7,250 7,250 7,250 7,250 Net working capital spending 350 400 450 350 ? a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Year 1 Year 2 Year 3 Year 4 Net income $ 2821 $ 3069 $ 3317 $ 1953 b. Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) Year 0 Year 1 Year 2 Year 3 Year 4 Cash flow $ $ 9671 $ 9869 $ 10217 $ c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).) NPV $
Your firm is contemplating the purchase of new $617,942 computer-based order entry system. What is the NPV of this project if the discount rate is 10.4 percent?
Find the rate of return for a Complete Portfolio with a standard deviation of 20%.
In an annual-pay cap the Black volatilities for caplets with maturities one, two, three, and five years are 18%, 20%, 22%, and 20%, respectively. Estimate the volatility of a one-year forward rate in the LIBOR Market Model when the time to maturity i..
John is 25 years old and wishes to retire in 30 years. His plan is to invest in a mutual fund earning a 12 percent annual return and have a $1 million retirement fund at age 55. How much must he invest at the end of each year to achieve this goal? Wi..
You own a 5 year bond with a face value of $1,000 and a coupon rate of 5 percent with annual payments. The bond is currently worth $810.46. If market interest rates remain unchanged, what will be the value of the bond next year when there are 4 years..
A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 9 years, and a cost of capital of 11%. What is the project's discounted payback period?
Calculate the cost of purchasing the equipment with debt. Calculate the cost of leasing the equipment.
Calculate the company’s disbursement float, collection float, and net float.
Future Value Annuity You are planning to make monthly deposits of $400 into a retirement account that pays 10 percent interest compounded monthly. If your first deposit will be made one month from now. how large will your retirement account be in 30 ..
What is the analogous for-profit statement called? What are the main sections of the statement of operations? What are revenues, gains, and other support?
Describe the major trends and forces that are changing the marketing landscape in the aviation industry in this age of relationships.
As an intern for Coca-Cola, you have been asked to help with developing an IMC budget. Evaluate your manager’s strategy.
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