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!
Question: (Calculating free cash flows) Doublemeat Palace is considering a new plant for a temporary customer, and its finance department has determined the following characteristics. The company owns much of the plant and equipment to be used for the product. This equipment was originally purchased for $90,000; however, if the project is not undertaken, this equipment will be sold for $50,000 after taxes; in addition, if the project is not accepted, the plant used for the project could be sold for $105,000 after taxes-the plant originally cost $40,000. The rest of the equipment will need to be purchased at a cost of $150,000. This new equipment will be depreciated by the straight-line method over the project's 3-year life, after which time it will have zero salvage value. No change in net operating working capital would be required, and management expects revenues resulting from this new project to be $234,000 per year for 3 years, while increased operating expenses, excluding depreciation, are expected to be $82,000 per year over the project's 3-year life. The average tax rate is 25 percent, and the marginal tax rate is 30 percent. The required rate of return for this project is 8 percent. What is the project's NPV?
A 5 year par value bond ($1,000) has an annual coupon rate of 8%. What is the modified duration of the bond? Use duration table (Note: discount rate is 8%)
In addition, discuss why the accounts receivable turnover rate and accounts payable turnover rate would be of interest in your decision making. Lastly, explain what meaningful insight you might obtain by reviewing the sales allowances and sales di..
you want to buy a car for 25000 and have 3000 to put down. your payment is 516.67 for 48 months. what is your interest
Rob has just received a check for $32,595. This is a return from an investment that he made 18 years ago. He was told that the return was the equivalent of 11% per year. How much was his original investment?
PC Calculators sells calculators that it purchases for $15 each. It costs PC $60 each time calculators are ordered, and carrying costs are 20 percent of the calculator's purchase price. Annual demand is 100,000 calculators.
Using semi-Annual compounding, what is the price of a 5 percent coupon bond with 10 years left to maturity and a market interest rate of 7.2 percent? Assume that interest payments are paid semi-annually and that par value is $1000.
suppose that a company borrows 20000 for 1 year at a stated rate of interest of 9 percent. what is the annual
If the pure expectations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average. Do not round your intermediate calculations. Round your answer to two..
List one benefit of trading halts for publicly listed companies as a way of managing information made available to the public, and list two disadvantages of trading halts.
So the fewer withdrawal the less fees would occur, but the more money left in the bank, the more interest is being earned.
Explain why a stronger dollar could enlarge the U.S. balance-of-trade deficit. Explain why a weaker dollar could affect the U.S. balance of- trade deficit. It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any..
leak inc. forecasts the free cash flows in millions shown below. if the weighted average cost of capital is 11 and fcf
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