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!
1. Lowell Confectionery is analyzing a proposed 3-year project using standard sensitivity analysis. The company expects to sell 13,000 units, ±4 percent. The expected variable cost per unit is $7 and the expected fixed costs are $36,000. The fixed and variable cost estimates are considered accurate within a ±6 percent range. The sales price is estimated at $14 a unit, ±5 percent. The project requires an initial investment of $90,000 for equipment that will be depreciated using the straight-line method to zero over the project's life. The equipment can be sold for $39,000 at the end of the project. The project requires $11,200 in net working capital for the three years. The discount rate is 11 percent and tax rate is 34 percent. What is the operating cash flow under the optimistic case scenario?
A. $54,480.69
B. $56,612.78
C. $58,554.53
D. $60,321.98
E. $62,486.10
2. Assume a machine costs $186,000 and lasts four years before it is replaced. The operating cost is $12,000 a year. Ignore taxes. What is the equivalent annual cost if the required rate of return is 10 percent? (Hint: the EAC should account for both initial investment and annual operating costs)
A. $70,677.57
B. $67,218.50
C. $62,113.94
D. $58,004.73
E. $54,669.77
jaedan industries has the following account balances as of december 31 2010 found on page 64 amp 65 of the text. the
At what rate would you discount the payments to find amount borrowed by LSC?
What were the corporation's earnings per share before the offering? What are the corporation's earnings per share expected to be after the offering?
If the firm has 5 million shares outstanding and the required cost of capital for the firm is 8%, what is the value per share of the firm’s equity?
Better Mousetraps has come out with an improved product, and the world is beating a path to its door. As a result, the firm projects annual dividend growth of 40 percent for the next two years, and then 20 percent for the following three years. Calcu..
Should there be a federal Sales and Use Tax System and what would be some of advantages and disadvantages? What is the Definition of interpersonal communication
The Fed has become significantly more transparent in the past few decades than when it was first created. Why have they become more transparent?
What is the average investment in accounts recievable as shown on the balance sheet?
Phoebe realizes that she has charged too much on her credit card and has racked up $5,600 in debt. If she can pay $225 each month and the card charges 16 percent APR (compounded monthly), how long will it take her to pay off the debt?
Uriah Heep celebrated his 18th birthday by opening a savings account at the Thames River Bank and depositing $5,000. What was the amount of his?withdrawal?
Martha's Interiors has a current beta of 1.2. The market risk premium is 6 percent and the risk-free rate of return is 4 percent. By how much will the cost of equity increase if the company completes an acquisition such that their company beta rises ..
Compute the payback statistic for Project B if the appropriate cost of capital is 12 percent and the maximum allowable payback period is three years. Accepted Rejected
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