What is the annual cash return

Assignment Help Finance Basics
Reference no: EM133116427

Problem Solving Instruction. Compute what is being ask for. Show your solution. 5 points in every correct answer. Items 1 to 3. Mr. Tito Puno is thinking of buying a machine worth 3300,000 with a scrap value of P4D,UUU after 5 years. It is expected to generate a net income before taxes o P80,0UU a year with an income tax rate of 30%. The cost of capital is 10%

1. What is the annual cash return?

2. What is the payback period?

3. What is the net present value?

Reference no: EM133116427

Questions Cloud

What is the value of david after the acquisition : Alexandra's is being acquired by David's for $75,000 cash. The acquisition is being financed internally from retained earnings. Alexandra's currently has 3,000
What impact did brexit have the on the euro : What impact did Brexit have the on the Euro? What about the impact on the Eurozone economy? If so what will be the future of the bloc
Find the amount of principal re-paid : You take out a 30-year, 200,000 mortgage loan with a nominal interest rate of 9%. You are scheduled to pay off the mortgage with level annual end-of-month amort
How can the quality of the data be maintained : Could the combination of data collection techniques yield more sources of information? How could data quality be improved? Justify your rationale
What is the annual cash return : Problem Solving Instruction. Compute what is being ask for. Show your solution. 5 points in every correct answer. Items 1 to 3. Mr. Tito Puno is thinking of buy
Alternative courses of action : What alternative courses of action would you recommend to Sm?ta Kumar to resolve her company's current problem?
What is the balance of browning capital account : What is the balance of Browning's Capital account at the end of the year after net income has been divided
Passive portfolio management approach : Critically analyse the theoretical and empirical justifications for a passive portfolio management approach.
Refined measures of performance : Refined measures of performance are commonly used to evaluate portfolio performance.

Reviews

Write a Review

Finance Basics Questions & Answers

  Critically evaluate the discounted cash flow methods

Critically evaluate the discounted cash flow methods of investment appraisal. Include in your consideration of real world constraints placed upon the effectiven

  What is up current cost of equity

What is UP's current cost of equity? If the risk free rate is 7 percent and the market risk premium is 5 percent, what is UP's unlevered beta?

  What is the required rate of return on plu stock

The risk-free rate of interest is 0.06, and the return on the stock market overall is expected to be 0.11. What is the required rate of return on PLU stock?

  What are the arithmetic and geometric returns

A stock has returns of -13 percent, 15 percent, 5 percent, 16 percent, and -9 percent. What are the arithmetic and geometric returns?

  Calculate the break-even price

-Aurizon Holdings Limited shares currently trade at 5.21$. An investor enters into a long-call option on Aurizon with an exercise price of 5.8$ per share in fou

  What is the numerical equation for the capital markets line

What is the numerical equation for the Capital Markets Line in this situation? Do shares A and B plot on the Securities Market Line?

  What is wilson de ratio

Problem: Wilson Inc. uses bonds and common shares to finance its investments and operations. The firm's debt consists of 20,000 bonds that are currently trading

  What type of decision is raquel facing

1. State clearly the problem. What type of Decision is Raquel facing? 2. Identify the alternatives and state of nature.

  Given the circumstance surrounding

a little more than 10 months ago, luke bought 300 shares of stock at $40 per share. Since then, the price of the stock has risen to $75 per share.

  Three techniques for solving time value problems

Explain how each of the 4 fundamental factors which affect the supply & demand for investment capital,m and hence, interest rates, Explain the 3 techniques for solving time value problems.

  Determine the effective percentage cost

Apex Supplies borrows £1 million at 12%, payable in one year. If Apex is needed to maintain a compensating balance of 20%,

  What the cost of equity for ajax using dividend valuation

The expected risk-free rate of interest is 2%, and the expected market premium is 5.5%. The company's beta is 1.2.

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd