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!
Spend 100000 on Machine C. You will need 5000 more in net working capital. C is three year MACRS. The cost of funds is 8% and the tax rate is 40%. C is expected to increase revenues by 45000 and costs by 7000 for each of the next three years. You think you can sell C for 10000 at the end of the three year period.
Find the year zero cash flow. (-105000)
Find the depreciation for each year on the machine. (33300; 44450; 14810; 7410)
Find the depreciation tax shield for the three operating years. (13332, 17780, 5924) What is the projects contribution to operations each year, ignoring depreciation effects. (22800)
What is the cash flow effect of selling the machine? (8964)
Find the total CF for each year. 0: (105000) 1: 36132 2: 40580 3: 42688
Should you buy it (NPV=-2866.52, NO)
PLEASE SHOW WORK
An investor has protective put position that consists of one long put option and one share of underlying stock. Calculate the break-even price for the investor.
The Wheel Deal Inc., a company that produces scooters and other wheeled non-motorized recreational equipment is considering an expansion of their product line to Europe. The expansion would require a purchase of equipment with a price of €1,200,000 a..
What must the one-year forward exchange rate be?
Discuss the different ways these statements are used each please: Asset Structure Balance Sheet Structure Capital Structure Liquidity Structure Financial Indicators Positively Influence Profitability and Why?
A check-processing center uses exponential smoothing to forecast the number of incoming checks each month.
A firm has revenue of $60,000, its total operating costs including depreciation and cost of goods sold are $50,620, depreciation is $4,620 and its interest expense on outstanding loans is $2,000. What is the firm’s EBIT? Suppose you could borrow usin..
Waterworks has a dividend yield of 6.00%. If its dividend is expected to grow at a constant rate of 3.00%, what must be the expected rate of return on the company’s stock?
What would be the nominal cost of that credit? What would be the effective cost of that credit?
XYZ Renovations Inc. is considering a project that has the following cash flow data. What is the project’s IRR? Note that a project’s projected IRR can be less than the WACC (and even negative), in which case it will be rejected. Year Cash Flow 0 ($5..
By what percent will the price of the bonds increase between now and maturity?
Paying off credit cards Simon recently received a credit card with an 12% nominal interest rate.
Cranberry Wood Products Inc. spends an average of $9.30 in labor and $12.60 in materials on every unit it sells. Sales commissions and shipping amount to another $3.10. All other costs are fixed and add up to $141,000 per month. What is Cranberry's c..
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