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!
BSU Inc. wants to purchase a new machine for $25,900, excluding $1,200 of installation costs. The old machine was bought five years ago and had an expected economic life of 10 years without salvage value. This old machine now has a book value of $1,700, and BSU Inc. expects to sell it for that amount. The new machine would decrease operating costs by $6,000 each year of its economic life. The straight-line depreciation method would be used for the new machine, for a six-year period with no salvage value.
(a) Determine the cash payback period. (Round cash payback period to 1 decimal place, e.g. 10.5.)
(b) Determine the approximate internal rate of return. (Round answer to 0 decimal places, e.g. 10. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
(c) Assuming the company has a required rate of return of 10%, determine whether the new machine should be purchased.
Cash payback period
years Internal rate of return
% The investment
be accepted.
Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
You are borrowing money to buy your first house that costs $350,000. You go to the first bank you see, Big Attitude Bank, and they are charging 4.25% interest. What is your annual payment to Big Attitude? What is your annual payment to Super Cheap Ba..
What was the average real return on the stock? What was the average nominal risk premium on the stock?
Calculate the yearly interest income of each bond on the basis of its coupn rate and the number of bonds that Mark could buy with his $20,000.
Johnson Company is investing $2,000 in a project whose after-tax cash flows are: year 1 = $250, year 2 = $500, year 3 = $750, and year 4 = $1,500. Johnson Company's tax rate is 35% and the risk-free interest rate is 6%. calculate the value of this pr..
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 10 percent, –10 percent, 17 percent, 22 percent, and 10 percent. Suppose the average inflation rate over this period was 1.5 percent and the average T-bi..
What is the value of a call option with strike price 45 and maturity of 5 months?
The stock of Silvanus Wildlife, Inc., has a beta of 1.04. The market risk premium is 8.21 percent and the risk-free rate is 3.59 percent. What is the expected return (in percents) on Silvanus stock?
What is the profitability index for an investment with the following cash flows given a 9 percent required return?
How much cash does the company have? If current liabilities are $1, 630, what are current assets?
Find the value of Magnetic Corporation’s common stock per share by computing:
Firm Xi has market beta for their equity of 1.2-currently has D/E ratio of 1.4. Now, value company with tax shield-how much value interest tax shield adds.
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