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!
Net Present Value Analysis of Two Alternatives
Perit Industries has $135,000 to invest. The company is trying to decide between two alternative uses of the funds. The alternatives are: Project A Project B Cost of equipment required $ 135,000 $ 0 Working capital investment required $ 0 $ 135,000 Annual cash inflows $ 25,000 $ 63,000 Salvage value of equipment in six years $ 9,800 $ 0 Life of the project 6 years 6 years The working capital needed for project B will be released at the end of six years for investment elsewhere. Perit Industries’ discount rate is 17%. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.
Required: 1. Compute the net present value of Project A. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 2. Compute the net present value of Project B. (Enter negative values with a minus sign. Round your final answer to the nearest whole dollar amount.) 3. Which investment alternative (if either) would you recommend that the company accept?
The Hamster Stop has $93,650 in the Accrued Payroll account. Hamster's weekly payroll is $156,000 and the accrual represents payroll for 3 days. If controls are strong, determine whether additional audit work should be done on this account.
Calculate the 6 month forward price of the stock. Calculate the price of a 6 month European at-the-money put.
Ward Corp. is expected to have an EBIT of $2.900.000 next year. What is the price per share of the company's stock?
How does collateral affect interest rate on a bond? How does subordination affect interest rate on bond too? What else might affect the interest rate on bond?
what is the Annual Worth of the machine that corresponds to its Economic Service Life?
The company currently has 130,000 shares of common stock outstanding. What are earnings per share?
Company sells 2,513 chairs a year at an average price per chair of $178. The carrying cost per unit is $30.53. The company orders 591 chairs at a time and has a fixed order cost of $44.9 per order. The chairs are sold out before they are restocked. W..
A mutual fund manager expects her portfolio to earn a rate of return of 14% this year. The beta of her portfolio is .9. Assume rate of return available on risk-free assets is 6% and you expect the rate of return on the market portfolio to be 16%. Cal..
Consider a currency swap for $10 million and SF15 million.- The current period has 181 days. Calculate the next payment each party makes.
What is the price of a put option with a $50 strike price and five months to maturity?
Discuss the precautions must one take when using ratio analysis to make financial decisions?
Show that there is an arbitrage opportunity and design a trading to exploit it.
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