Reference no: EM131967658
Question: Diagnostics Unlimited, a company with a marginal ordinary tax rate of 34% (no state tax), capital gains tax rate of 15 %, and an MARR of 13%, purchased research and development (R&D) equipment at EOY zero for $2,000,000 to develop a non-invasive glucose monitor for diabetic patients. Operating costs are $650,000 per year. In years one and two, they no Income. In year three, they patent a new diagnostic technique, sell the patent rights for $4,000,000, and sell the R&D equipment for $2, 400.000. Note that in the first two years the company operates the protect at a loss, and thus has a net tax savings for this project In years 1 and 2.
a) Find the cash flows for years 0, 1, 2 and 3.
b) Find the net present worth at the company's MARR.
c) Find the Internal rate of return.
What is the peg ratio of the social media stock
: Diane has found a really neat social media stock that is growing like wildfire. It has expected earnings of 10 mm (net income) but it is growing sales 30% per.
|
What is the current value of the bond
: Diane Carter is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar.
|
Calculate the ending inventories of given quarter
: Calculate the Quarter 2 ending inventories (in dollars) using the LIFO inventory valuation method.Calculate Quarter 2 GROSS PROFIT using the LIFO inventory.
|
What growth rate of earnings would you forecast for dfb
: DFB, Inc., expects earnings this year of $4.89 per? share, and it plans to pay a $2.74 dividend to shareholders. DFB will retain $2.15 per share.
|
Find the internal rate of return
: Diagnostics Unlimited, a company with a marginal ordinary tax rate of 34% (no state tax), capital gains tax rate of 15 %, and an MARR of 13%, purchased research
|
How you would employ different capital budgeting techniqes
: Give an example of how you would employ the different capital budgeting techniques to a real life situation or a situation you can envision.
|
What will be return on equity under the new plan
: They project a total asset turnover ratio of 1.9 and a tax rate of 40 percent. Given that information, what will be ABC's ROE under the new plan?
|
How much money would you need to deposit today
: How much money would you need to deposit today at 06.00% annual interest compounded monthly to have $45,923 in the account after 10 years?
|
What is enterprise value to sales
: Diane has found a really neat social media stock that is growing like wildfire. It has expected earnings of 10 mm (net income) but it is growing sales 30%.
|