12 The City of Wilsonville is adding 10 New natural gas busses The cost of the busses with compression facility is 4,000,000 $ 12 2.00 1.25 200000 Cost Bus life (years) Fuel Cost Savings/Gallon Environmental credit per Gallon Total Gallons/Year 4% Current Bond Rate A. What is the Benefit Cost Ratio for the City
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- A firm is considering purchasing equipment to manufacture a new product. The equipment will cost $3M, and expected net cash inflowsare $0.35M indefinitely. If market demand for theproduct is low, then over the next five years thefirm will have the option of discarding the equipment on a secondary market for $2.2M. Assume thatMARR = 12%, s = 50%, and r = 6%. What isthe value of this investment opportunity for the firm?9_relations among projects that cover all possibilities could be: Select one:a. independentb. mutually exclusivec. related and not mutually exclusived. all of the above 10_The amount you have to deposit in order to get $600 in the next 9 years at i=16% is: Select one:a. $4050b. $2527c. $3145d. $2763,9 Solve both please otherwise skip, I know bartleby policy 1 st 3 mcq solve compulsory.5.59 Richard Moed wants to ensure that at least some of his descendants are well educated in perpetuity. He isplanning for 5 college students each generation at $125,000 each. He estimates that the generations will be spaced every 25 years, but the first generation will be in 10 years. If the trust will earn 6%, how much money should be deposited now?
- A businessman is considering the purchase of a machine that is expected to be obsolete in 5years. The machine is worthP100,000. The prevailing rate of interest is 15%. His estimate of the annual gross incomes fromthe use of the machine isas follows:Year Income1 20,0002 25,0003 35,0004 30,0005 28,000Total = P138 999Should the businessman purchase the machine?Title NPBT $100,000: NPAT $70,000: Interest Expense $10,000: Income Tax $30,000: Sales $950,000. Calculate Description NPBT $100,000: NPAT $70,000: Interest Expense $10,000: Income Tax $30,000: Sales $950,000. Calculate the Profit Margin using EBIT:Question 10 options: (a) 7.4% (2)11.6% (3) 13.7% (4)none of the options listedCfood Co. is considering acquisition of Tfood Co. Some financial information on the two companies is given below (in $ million): Cfood Co. Tfood Co. Price per share 49 13 # of shares 10 2.5 Market value 490 32.5 If Cfood acquires Tfood, the operating cost (after-tax) can be reduced by $2m, and sales (after-tax) can be increased by $3m (the synergies) per year in perpetuity. The cost of capital is 19%. Cfood is considering two alternatives for the acquistion: 1. buying all the shares of Tfood at $15.6 per share. 2. issuing 1 shares for every 3 shares of Tfood Workout on this merger deal and answer the following questions. i. What is the economic gain from the merger? ii. What will be the NPV of merger under cash offer? iii. What will be the market value of merged company (Cfood after the acquition of Tfood) under the cash offer?
- Cfood Co. is considering acquisition of Tfood Co. Some financial information on the two companies is given below (in $ million): Cfood Co. Tfood Co. Price per share 49 13 # of shares 10 2.5 Market value 490 32.5 If Cfood acquires Tfood, the operating cost (after-tax) can be reduced by $2m, and sales (after-tax) can be increased by $3m (the synergies) per year in perpetuity. The cost of capital is 19%. Cfood is considering two alternatives for the acquistion: 1. buying all the shares of Tfood at $15.6 per share. 2. issuing 1 shares for every 3 shares of Tfood Workout on this merger deal and answer the following questions. i. What is the economic gain from the merger? ii. What will be the NPV of merger under cash offer? v. What is the cost of merger under stock offering? Also compute the merger's NPV for Cfood's original shareholders. i. What is the economic gain from the merger? ii. What…Housing PricesConsider a 1,500 square foot house, which rents monthly for $0.75 per square foot. Prevailing interest ratesare 5 percent, and remain constant(a) Assuming the rent is constant, and that you cannot resell the home, what is the most you’d be willingto pay for it?(b) Now suppose you could sell the house after 4 years, what is the most you’d be willing to pay for it?(c) Suppose that the house requires a constant annual maintenance cost of $500 to last forever, how muchare you willing to pay for it today?(d) If rent is not constant, but grows at a rate of 0.5 percent per year, how much would you pay for thehouse? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure15) If money has a time value, then the future value will always be more than the original amount invested. Select one: True False 16) A series have the receipts in year 1 =$ 80000. If the Fees are expected to increase uniformly to a level of $200,000 in nine years. What is the possible value for the gradient? Select one: a. $20000 b. $ 15000 c. $ 30000 d. $ -20000 17) In a cash flow series regarding the gradient: Select one: a. Uniform gradient signifies that an income or disbursement changes by the same amount in each interest period b. Either an increase or decrease in the amount of a cash flow is called the gradient c. The gradient in the cash flow may be positive or negative d. All of the above is correct
- Gabe purchases a $500 bond that has 6 remaining semi-annual 6% coupon payments for $450. What would be his return per half year period? Round entry to 1 decimal place. The tolerance is ±0.4.5 Mr. H Salt purchased an 1/8 interest in a producing oil well for $45,000. Recoverable oil reserves for the well were estimated at that time at 15,000 barrels, 1/8 of which represented Mr. Salt's share of the reserves. During the subsequent year, Mr. Salt received $12000 as his 1/8 share of the gross income from the sale of 1000 barrels of oil. From this amount, he had to pay $3000 as his share of the expense of producing the oil. Compute Mr. Salt's depletion allowance for the year.Edinburgh Newcastle £000 £000Franchise fee (year 0) 8,700 7,950New buses (year 0) 4,120 3,890Scrap value (year 5) 110 95Forecast net cash inflowsYear 1 3,780 3,500Year 2 4,150 3,850Year 3 4,550 4,200Year 4 5,120 5,150Year 5 4,900 4,950 calculate the payback period for both the…