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. You are evaluating a small project for your company. The idea is to introduce a new, but short lived, new product. The project has a 5 year expected life. Equipment costing $2 million is required, and it will require $500 thousand to deliver and install the equipment. Net working capital of $700 thousand will be required to begin the project, and will be returned at the end of the project. Sales over the 6 year useful life of the project will be 100,000 units each year. The price is expected to be $25 per unit. Costs are expected to be $15 per unit each year. At the end of the project’s useful life, the equipment will be sold for $500,000. The equipment qualifies for MACRS 7 year asset depreciation. The tax rate is 40%, and your cost of capital is 14%. What is the NPV of the project? What is the Profitability Index? Calculate the MIRR. Calculate the IRR. Calculate Payback using Excel. Should the project be accepted? Use Excel for this problem.
2. You are evaluating a project for your company that has an open ended (perpetual) life. Cash flow in year one is expected to be $60,000, and this cash flow is expected to grow at a rate of 5% per year for 5 years. After this initial 5 year period, your expectations are that the cash flows for the project will remain constant. The initial investment for the project is expected to be $350,000. Your cost of capital is 12%. Using this information, calculate the NPV for the project. Calculate the IRR. Is it acceptable? Use Excel for this problem.
If interest rates suddenly rise by 2 percent, what is the percentage price change of these bonds? What if rates suddenly fall by 2 percent instead?
If the company maintains a constant 3.9 percent growth rate in dividends, what was the most recent dividend per share paid on the stock?
What is the value of a share of preferred stock that promises to pay $2.37 every year,
Currently, you can exchange €100 for $134.15. The inflation rate in Euroland is expected to be 3.1 percent as compared to 3.6 percent in the U.S. Assuming that relative purchasing power parity exists, what should the exchange rate be five years from ..
If the tax rate is 0.30, what is the aftertax salvage value of the asset (SVNOT)?
Bond rating agencies have invested significant sums of money in an effort to determine which quantitative and nonquantitative factors best predict bond defaults
Graph your expected return, and the standard deviation of your returns, as a function of your investment weight in A (w) as w runs from -2 to 2.
To determine the additional funds needed to support the level of forecasted operations,______
Depreciation is a non-cash charge. What are some of the different depreciation methods commonly used? How does the depreciation impact net profit and cash flow?
The appropriate capital budgeting decision rule is ____
In financial literature this rate is considered to be the "risk free rate" of interest, which includes the rate of time preference and the inflation premium.
What is the difference between the balance and the market value of the loan after 36 monthly payments if the interest rises to 5%?
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