Reference no: EM131660778
You have been offered a very lon term investment opportunity to increase your money one hundredfold. You can invest $1,100 today and expect to receive 110,000 in 40 years. You cost of capital for this very risky opportunity is 16%.
What does the IRR rule say about whether the investment should be undertaken?
What about the NPV rule?
Do they agree?
What is the IRR?
The IRR of this investment opportunity is ___% round to one decimal
Elmdale Enterprises is deciding whether to expand its production facilities. Although long term cash flows are difficult to estimate, management has projected the following cash flows for the first 2 yrs (in millions)
Year 1 Year 2
Revenues 111.2 164.1
COGS and operating Exp (other than depreciation) 42.2 59.3
Depreciation 29.8 31.4
Increase in working capital 3.1 8.2
Capital Expenditures 29.3 43.1
Marginal corporate tax rate 32% 32%
a. What are the incremental earnings for this project for years 1 and 2?
b. What are the free cash flows for this project for the first two years
c. The incremental earnings for year 1 is $ million (round to one decimal)
Continuously compounded rate of interest
: If the stock is currently priced at $43.40, what is the annual continuously compounded rate of interest?
|
What duties did brock as a director owe to firm body
: David Brock is on the board of directors of Firm Body Fitness, Inc., which owns a string of fitness clubs in New Mexico. Brock owns 15 percent of the Firm Body.
|
Define delegation and explain its importance
: Define delegation and explain its importance. Explain the concepts of downsizing, rightsizing, and survivor's syndrome.
|
Explain how they are exhibited throughout the business
: Identify the OSHA safety compliances, explain how they are exhibited throughout the business, and identify the safety model.
|
Very lon term investment opportunity
: You have been offered a very lon term investment opportunity to increase your money one hundredfold.
|
People have become more connected technologically
: Do you think that as people have become more connected technologically they become less connected interpersonally?
|
Discuss limited liability of corporate shareholders
: Critical Legal Thinking. What are some of the ways in which the limited liability of corporate shareholders serves the public interest?
|
Discuss healthcare facility and a behavioral healthcare unit
: Describe the similarities and differences between staffing for a stand-alone behavioral healthcare facility and a behavioral healthcare unit
|
Prepare the journal entry to record the sale of these bonds
: Nike, issues $267,000, 10-year, 6% bonds at 96. Prepare the journal entry to record the sale of these bonds on March 1, 2017
|