Reference no: EM131355389
You are evaluating a project for The Ultimate Driver, guaranteed to correct that nasty slice you hit off the tee. You estimate the sales price of The Ultimate to be $599 and sales volume to be 2,000 units in year 1, 2,250 units in year 2, and 2,500 units in year 3. The project has a 3 year life. Variable costs amount to $325 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $255,000 which is depreciated straight-line to zero over the 3 year project life. The actual market value of the initial investment at the end of year 3 is $40,000. Initial net working capital investment is $75,000 and NWC will be maintained a level equal to 20% of sales each year thereafter. The firm has outstanding 5% annual coupon bonds with 7 years to maturity selling for 89:23. The firm’s common stock currently sells for $61 per share and recently paid a $3 dividend. The firm’s total debt ratio is 0.33 and the tax rate is 30%. 25. What is EBIT for the project in the first year? 26. Given the $75,000 initial investment in NWC, what change occurs for NWC during year 1? 27. What is the operating cash flow for the project in year 2? 28. What is the effect of the $35,000 salvage value on year 3 cash flows? 29. What is the total cash flow for the project in year 3?
EBIT of project the first year?
operating cash flows for year 2?
effect of salvage value of $35000 in year 3?
total cash flow for year 3?
please show steps and formulas, im using a ba ii plus financial calculator
|
Information on systems development life cycle
: Research information on Systems Development Life Cycle (SDLC). How many different models of the SDLC can you find? How is security being integrated into the SDLC? Summarize your findings.
|
|
Project deliverable-project plan inception
: This assignment consists of two (2) sections: a project introduction and a Gantt chart or project plan. You must submit both sections as separate files for the completion of this assignment. Label each file name according to the section of the assig..
|
|
Explain your knowledge and position on recent trends in us
: Describe and explain your knowledge and position on recent trends in the U.S. about marijuana in modern society. Compare it to what you know about alcohol and Prohibition
|
|
Today for one share of mahenterin inc. stock
: Mahenterin Inc. is expecting to pay $1.23, $0.99, and $1.13 in annual dividends for the next three years respectively. After that, they project that dividends will increase by 1.5% annually. Andy is in the 25% marginal tax bracket and wants to earn 6..
|
|
What is operating cash flow for the project in year
: You are evaluating a project for The Ultimate Driver, guaranteed to correct that nasty slice you hit off the tee. You estimate the sales price of The Ultimate to be $599 and sales volume to be 2,000 units in year 1, 2,250 units in year 2, and 2,500 u..
|
|
Calculate the maximum load that can be raised by a force
: The mean diameter of a square-threaded jackscrew is 3.00 in., the pitch is 0.40 in., and the coefficient of static friction is 0.15. Calculate the maximum load that can be raised by a force of 75 lb applied at the end of a 14-in. jack handle.
|
|
Expected price per share of mdk stock six years from now
: MDK, Inc. is a high growth firm that has never paid a dividend. The company just issued a press release stating that next year they plan on paying an annual dividend of $0.34. They also stated that dividends are expected to increase by 40% a year for..
|