3. Complete the decision rule for the IRR method. If then the project is economically justified.

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A: Given: Risk free rate = 4% Market risk premium = 6% Beta = 1.20 Market price = $55

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A: Given: Net Income: $1420200 Book value of equity = $11,115,000 Dividend payout ratio = 45%

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Q: analyze cash flow and compute for the unknown value. show complete solution, thank you.

A: Year Deposit / Investment 0 0 1 5 2 5 3 5 4 10 5 15 6 20 7 25 8 30 9 35 10 40…

Q: If the coupon rate of a bond is 3.05% and the yield to maturity is 6.48%, and if a bondholder has a…

A: After-tax yield = Yield to maturity(1 - Tax rate) where, Yield to maturity = 6.48% Tax rate = 21%

Q: Statement True False When returns on Stock A increase, returns on Stock B also increase. In general,…

A: Standard deviation is a measure of risk. The standard deviation or risk of a portfolio is least when…

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A: Particular Cost per pound Pound Potatoes 3.23 3 Cod 2.27 2 Fish broth 3.27 4

Q: Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is…

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Q: Benford Inc. is planning to open a new sporting goods store in a suburban mall. Benford will lease…

A: Net  Present Value: The net present value is an important tool  in  capital budgeting decision to…

Q: Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year,…

A: Year Deposit 2 1000 3 1500 4 2000 Interest rate = 0.06

Q: The firm's bank charges $18 per wire and $0.50 per EDT. The EDT takes one day longer to clear. The…

A: Since  The minimum transfer balance= TBAL TBAL=Incremental costDS×(K-ECR(1-RRR))365 Where: DS= Days…

Q: an investor, Erik, is offered the investment opportunities described in the table below. Each…

A: Risk averse means a person who takes risk for additional return. Risk loving means a person who…

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A: Given, The present worth of cashflows is $9,330 Discount rate is 12%

Q: 1. A share of stock of company is now selling for 23.5 lei. A financial analyst summarizes the…

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Q: capitalized cost of an expenditure of P 200,000 at time 0, P 25,000  in years 2 through 5, and P…

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A: Depriciation:- Depreciation is an accounting method that is used to divide or allocate Cost of a…

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A: Present Value: It is  the current value of a future  stream of money  at a  specified rate of…

Q: he balance sheet and income statement for the J. P. Robard Mfg. Company are as​ follows:…

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Q: "Financial manager

A: Financial managers are the person who is responsible for the financial health of the company and…

Q: What equal uniform annual payment for 10 years beginning 1 year from now

A: A stream of equal cash flows paid or received periodically is termed as annuity. Annuity is either…

Q: Warr Company is considering a project that has the following cash flow data. What is the project's…

A: Solved using Financial Calculator  To clear Memory, 2nd > CF > 2nd > CE|C CF = +/- 1,415…

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Q: 4) A person deposits an amount of 10,000 riyals in a bank at a vehicle driving rate of 6% per annum.…

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Q: You already have $54,700 in your savings account that earns 3.50% compounded annually. You will…

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Q: Pedro Gil Company must maintain a compensating balance of P50,000 in its checking account as one of…

A: Given: Loan amount = P500000 Interest paid on loan = 6% Compulsory compensating balance = P50000…

Q: There are three stocks in a price-weighted index: A $100 B $20 C $60 a. What is the average value…

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A: Here, Cash price of car = $11,000 Down payment = $4,000 Amount of monthly payment = $225 Total…

Q: Urgently need Given the following cash flow: $6,500, $4,500, and -$13,000. What is the barrowing…

A: Period Cash flow 1 6500 2 4500 3 -13000

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.