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!
Question: A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,300 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 34% and can depreciate the investment for tax purposes using the five-year MACRS tax depreciation schedule. Assume the opportunity cost of capital is 9%. Ignore inflation.
Calculate project NPV for each company. (Negative amounts should be indicated by a minus sign.Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
NPV
Company A $
Company B $
b-1. What is the IRR of the after-tax cash flows for each company? (Do not round intermediate calculations. Round your answers to 2 decimal places.)
IRR
Company A %
Company B %
b-2. What does comparison of the IRRs suggest is the effective corporate tax rate? (Do not round intermediate calculations. Round your answer to 1 decimal place.)
Effective tax rate %
John invested $1,000 in a risky investment and Bill invested $1,000 in a less risky investment. One year later, Bill's investment is worth $1,030.
Compute the internal rate of return for each investment. Use the above table of present value of an annuity of $1. If required, round your present value factor.
additionally to the lender to eliminate the loan? Fifthly, how much is the effective annual rate?
Calculating ROCE from the Statement of Shareholders; Equity (Easy) From the following information, calculate the return on common equity for the year 2012.
You determine that the investor's annual rate of return for the year was 2.44%. What must be the price at which the bond was sold?
Company A has inventory equal to $100,000 with a current ratio of 2.3 and quick ratio of 1.8, what is the level of the firms current liabilities?
warr corporation just paid a dividend of 1.25 a share that is d0 1.25. the dividend is expected to grow 10 a year for
The case study - Steve and Crystal Riley. The first four steps of the safe harbour are repeated below. They all form part of this stage in the financial planning process and you need to address all four steps in this first question. Briefly describ..
You are trying to evaluate the financial health of a corporation. You need to make the evaluation quickly, so you have time to look up only three line items on the income statement and/or balance sheet.
Explain the concepts of present value and discuss your interpretation of their value as assessment tools for accountant or operator (include an example).
The company has 2 million shares of common stock outstanding and a P/E ratio of 12. What is the dividend yield for Maxwell Electronics?
Without the new SUV, Ford expects to earn pre-tax income of $80 million from operations next year. Ford pays a 30% tax rate on its pre-tax income. What is the amount Ford owe in taxes next year with the launch of the new SUV?
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