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!
You must evaluate a proposed spectrometer for the R& D Department. The base price is $ 140,000, and it would cost another $ 30,000 to modify the equipment for special use by the firm. The equipment falls into the MACRS 3- year class and would be sold after 3 years for $ 60,000. The applicable depreciation rates are 33%, 45%, 15%, and 7% as discussed in Appendix 12A. The equipment would require an $ 8,000 increase in working capital (spare parts inventory). The project would have no effect on revenues, but it should save the firm $ 50,000 per year in before- tax labor costs. The firm's marginal federal- plus- state tax rate is 40%. a. What is the net cost of the spectrometer; that is, what is the Year 0 project cash flow? b. What are the project's annual net cash flows in Years 1, 2, and 3? c. What is the terminal cash flow? d. If the WACC is 12%, should the spectrometer be purchased? Explain.
Compute the IRR for this project. How many IRRs are there? Using the IRR decision rule, should the company accept the project? What's going on here?
Philadelphia Corporation's stock recently paid a dividend of $2.00 per share, and the stock is in equilibrium. The corporation has a constant growth rate of 5% and a beta equal to 1.5.
A corporation has yearly sales of $14,000. Its variable costs equal 60% of its sales, fixed costs equal $1,000. If the company's sales increase 10 percent,
Assuming that interest rated in the economy are expected to remain at their current level, what is the best estimate of the nominal interest rate on new bonds?
Your Company, Agrico Products, is considering the purchase of a tractor that will have a net cost of $36,000, will increase pre-tax operating cash flows before taking account of depreciation effects by $12,000 per year,
There are 25 years to maturity. Compute the price of the bonds based on semiannual analysis. With 20 years to maturity, if yield to maturity goes down substantially to 8 percent, what will be the new price of the bonds?
Suppose that Stevens Point Corporation has net receivables of 100,000 Singapore dollars in ninety days. The spot rate of the S$ is $.50, and the Singapore interest rate is 2 percent over ninety days.
Computation of Net operating Income and Market Value and Stock Price and If the selling price per deck of cards will be the same under each method
Discuss the components of microeconomics OR macroeconomics, explaining why they are important to financial planners.
After analyzing a sample of remaining 480 items, you determine that sample is overpriced by 6%. By using this 6% decrement factor, what cost must you evaluate for those items?
What is the price(expressed as a percentage of the face value) of a one-year, zero-coupon corporate bond with a AAA rating?
You borrow $70,000; the annual loan payments are $8,690.06 for 30 years. What interest rate are you being charged? Round your answer to two decimal places.
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