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You will put up $60,000 now & additional 75,000 dollar at the end of year two. You will receive back 20,000 dollar at the end of the next eight years.
An expansion has the following projects for the next 2 years [in millions] & after year 3 the net free cash flows are expected to grow at 6 percent forever.
I will pay you $40,000 today, $15000 at the end of each of the next 3 years [1st payment of $15,000 is at the end of year 1], & then $38,000 at the end of the last year.
You have been offered the following investment: You will put up $60,000 now and additional $40,000 at the end of years 2, 3 and 4. Beginning at the end of year 5.
Suppose the CAPM or one-factor model holds, determine the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk free rate of return is 2 percent.
James Sound Systems has 210,000 shares of common stock outstanding at a market price of $36 a share. Last month, James paid a yearly dividend in the amount of $1.593 per share.
Perform a financial analysis for a project using the format provided. Suppose the projected costs & benefits for this project are spread over 4 years as follows: Estimated costs are 100,000 dollar
Assume you have 2 best projects in which you could invest, but due to your resource limitations you can only invest in one of them.
Compute interest Rate. Find the annual interest rate.
You deposit $1,000 in your account. If your bank pays four percent simple interest determine how much will you accumulate in your account after ten years?
Calculate the future value of a $100 each flow for the given combinations of rates and times.
Calculate the present value of a $100 cash flow for the given combinations of discount rates & times:
You are thinking a project which has been assigned a discount rate of eight percent. If you start the project today, you will incur an initial cost of 480 dollar and will receive cash inflows of $350
The Can-Do Co. is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10 percent. The expected variable cost per unit is 8 dollar & the expected fixed costs are 12,
Daniel’s Custom Cars purchased some fixed assets two years ago for 39,000 dollar. The assets are classified as five year property for MACRS.
Ernie's Electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost 150,000 dollars
An investment has the following cash flows. Should the project be accepted if it has been assigned a required return of 9.5 percent
Determine the operating cash flow for 2006
A project has a NPV, suppose all equity financing, of 1.5 million dollar. To finance the project, debt is issued with associated flotation costs of $60,000. The flotation costs can be amortized
A Biotech Company is evaluating several development projects for experimental drugs. Computation of NPV and selection of project.
Calculate the payback period of this investment? If your enquire a payback period of two years, will you make the movie? Does the movie have positive Net Present Value if the cost of capital is 10 per
Calculate the NPV of this investment if the cost of capital is 6 percent? Should the firm under take the project? Repeat the analysis for discount rates of 2% and 11%.
Suppose you are a real estate agent thinking of placing a sign advertising your services at a local bus stop. The sign will cost 5000 & will be posted for one year.
The plant will cost dollar 100 million upfront and will take one year to build. After that, it is expected to produce profits of dollar 30 million at the end of every year of production.
Jekyll & Hyde Corp. is evaluating two mutually exclusive projects. Their cost of capital is 15%. Costs & cash flows are given in the table.