Reference no: EM132444250
1). Delta Inc. is considering the purchase of a new machine which is expected to increase sales by $10,000 in addition to increasing non-depreciation expenses by $3,000 annually. Due to the sales increase, Delta will need to increase working capital by $1,000 at the beginning of the project. Delta will depreciate the machine using the straight-line method over the project's five year life to a salvage value of zero. The machine's purchase price is $20,000. The firm has a marginal tax rate of 34 percent, and its required rate of return is 12 percent.
1a) The machine's initial cash outflow is?
1b)The machine's incremental after-tax cash inflow for year 1 is?
1c) The machine's after-tax incremental cash flow in year five is?
1d) The machine's NPV is?
1e)The machine's IRR is?
2) There is a 30% probability that an office building will be sold after 5 years for $30 million, a 50% probability that it will be sold for $20 million and a 20% probability that it will be sold for $10 million. What is the expected value of the office building in 5 years?
3) Callahan Stoves expects to sell 1,200 wood pellet stoves in 2011 at an average price of $2,400 each. It believes that unit sales will grow between -5% and +5% per year and prices will rise or fall by as much as 5% per year. Forecast sales revenue for 2013 if the number of units sold increases by 5% per year and prices remain flat.
Use the following information to answer the following question(s).
4). The following data concerning
Hemond Company's capital structure is available.
$ millions
|
Book Values
|
Market Values
|
Accounts Payable & Accruals
|
$300
|
|
Short-term notes
|
$150
|
$150
|
Long-term debt
|
$450
|
$600
|
Preferred Stock
|
$75
|
$150
|
Common Stock
|
$600
|
$1500
|
4a) The percentage of common stock in Hemond's weighted average cost of capital is
4b) The percentage of debt in Hemond's weighted average cost of capital is
4c) The percentage of preferred stock in Hemond's weighted average cost of capital is
4d) The total capital that should be used in computing the weights for Hemond's WACC is
What is the risk posture for each particular system
: What is the risk posture for each particular system as it contributes to the overall risk posture of the organization? How does each attack surface.
|
Company current stock price of francis company
: The Francis Company is expected to pay a dividend of D = $1.25 per share at the end of the year, and that dividend is expected to grow at a constant rate
|
How found the time for reflective learning
: What challenges did you face in our course, and how did you handle them? Would you respond differently to those challenges in future courses?
|
What can a poor security architect do
: Given multivariate, multidimensional events generated by adaptive human agents, perhaps it would not be too far a stretch to claim that no two events.
|
Forecast sales revenue for 2013
: Forecast sales revenue for 2013 if the number of units sold increases by 5% per year and prices remain flat.
|
Identify approaches to negotiation as articulated by barsky
: After reading the assigned chapters for this module/week, identify the three approaches to negotiation as articulated by Barsky. Clearly discuss your response.
|
Expalin about Who is Joseph Pilate
: Expalin about Who is Joseph Pilate
|
Evaluate publicity campaigns to inform decisions
: Billboards, public transport placards, television ads, media programs, websites, and social media are all resources used to deliver messages.
|
Assignment on calculating leverage
: There are two types of leverage: operating and financial leverage. Operating leverage is the amount of fixed costs in the organization's financial structure
|