Firm operating out of valdez

Assignment Help Finance Basics
Reference no: EM131114096

Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $275,000 and is expected to provide after-tax annual cash flows of $73,306 for eight years. The firm's management is uncomfortable with the internal rate of return (IRR) reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 12 percent. What is the project's modified internal rate of return (MIRR)? Given that the cost of capital is 12 percent, should the project be accepted? Why?

Reference no: EM131114096

Questions Cloud

Compute cost of goods sold assuming periodic inventory : Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
Calculate the price of the bond : A bond with $1,000 maturity value has a coupon rate of 8 percent and a required return of 6 percent. The bond is to mature in 2 years.
What is argument luban offers for the hybrid war-law model : What is the argument Luban offers for the hybrid war-law model? What is the argument he offers against it? Which side of the argument is more compatible with respect for human rights?
Determining the value for jayhawk : Jayhawk wants to select the project that provides the most value over the next four years. What is the net present value (NPV) of the project that creates the most value for Jayhawk?
Firm operating out of valdez : Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering.
How a different culture handles death : Your task is to find information about how a different culture handles/treats death, dying and funerals.
European call option with a strike price : A stock price is 100 now and will be either 108 or 93 in a year. The RFR is 8% per annum with continuous compounding. Using the risk-neutral valuation, find the price of its one year European call option with a strike price of 102.
Identify and describe the sender-caused barriers : Identify and describe the sender-caused barriers, receiver-caused barriers, and other barriers in communications. Who is most responsible, Sender or Receiver
What is the dividend yield : The next dividend payment by ECY, Inc., will be $1.60 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever. The stock currently sells for $30 per share

Reviews

Write a Review

Finance Basics Questions & Answers

  A local market research firm has just won a contract for

a local market research firm has just won a contract for several thousand small projects involving data gathering and

  Description of present value of annuity

by using the proper PV Table and supposing a 12% annual interest rate, find out the present value on December 31, 2009 of the five period annual annuity of 10000 under each of following situations:

  Beaksley, inc. is a very cyclical type of business

Beaksley, Inc. is a very cyclical type of business which is reflected in their dividend  policy. The firm pays a $2.00 a share dividend every other year. The last dividend was  paid last year. Five years from now, the company is repurchasing all o..

  What is the maximum initial cost the company

What is the maximum initial cost the company would be willing to pay for the project?

  What is the theoretical and practical trade-off

What is the theoretical and practical trade-off when measuring the pension liability using the projected benefit obligation compared to the accumulated benefit obligation?

  What about if the first payment is due right now

You want to buy a car that costs $30,000 with a 4-year loan at an annual rate of 6%. How much is your montly payment if the first payment is due one month from now? what about if the first payment is due right now?

  What premise about share value underlies

What premise about share value underlies the constant-growth valuation (Gordon growth) model that is used to measure the cost of common stock equity, rs?

  How much in dividends was paid to shareholders

In its most recent financial statements, ABC Inc. reported $35 of net income and $706 of retained earnings. The previous retained earnings were $824. How much in dividends was paid to shareholders during the year?

  Computation of operating cash flows

Computation of Operating Cash flows and described in the module and verify that the answer is the same in each case

  A company is trying to decide whether to revise its target

a company is trying to decide whether to revise its target capital structure. currently it targets 50 debt and 50

  Calculate the contribution margin

Rhetorix, corporation produces stereo speakers.The selling price per pair of speakers is $900. The variable cost of production is $300 and fixed cost per month is $60,000.

  The offender need to address to be successful

What areas does the offender need to address to be successful upon re-entry? Make sure that the goals you develop for him can be measured. What community resources and programs will you draw on for th

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd