Reference no: EM132592282
Question 1: The Mitec Inc. is planning to purchase a new production machine. The startup cost of purchasing and installing the machine is $1,000,000. The machine will generate revenue of $500,000 each year for the next 10 years, and all costs including costs of raw materials, labor, utilities, and taxes are $300,000 per year. The machine will require maintenance at the end of every two years, costing $100,000 each time. At the end of the ten years, the company needs to spend $50,000 to divest the machine. The cost of capital for this project is 6%.
What is the profitability index of this project?
Question 2: Bonds of Lowell Inc. are selling in the market for $1,678.23. These bonds carry a 9.5% coupon rate, paid quarterly, and have 10 years remaining to maturity.What is the bond's current yield?
Question 3: Leveraged Corporation has a total debt to assets ratio of 65%. Its net income last year was $50,000. If the total debt was $200,000, what was the return on equity?
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How much heat is rejected to the surroundings
: The engine produces 375 kJ of work. How much heat is rejected to the surroundings?
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Determine the depreciation expense should be
: Find The depreciation expense for 2020 should be, Accumulated depreciation on this machine at December 31, 2019, was $118,000, using the straight-line method.
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What is the heat rejected from this rankine cycle
: If the specific enthalpy at the exit of the turbine is 2700 kJ/kg, what is the heat rejected from this Rankine Cycle in units of kJ/kg?
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What is the specific enthalpy and the specific entropy
: What is the specific enthalpy and the specific entropy of the water as it enters the turbine
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Compute what was the return on equity
: Corporation has a total debt to assets ratio of 65%. Its net income last year was $50,000. If the total debt was $200,000, what was the return on equity?
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Why the charge on each capacitor is the same
: 1 Given three capacitors connected in series with a battery. a. Explain why the charge on each capacitor is the same.
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What is the yield to maturity of the DSI bond
: Lowell Corporation has a dividend payout ratio of 90% and an internal growth rate of 3%. If its debt-equity ratio is 60%, what is its ROE?
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Learned about the rate of energy transfer
: Learned about the rate of energy transfer also known as power. In a classic experiment, Robert Downey Jr.
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What is the fundamental resonance frequency
: A pair of speakers separated by 0.7m are driven by the same oscillator at a frequency of 690 Hz. An observer, originally positioned
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