Machine basic price $58,700 Modification cost $15,000 Salvage value at year 3 $30,000 Net working capital $4,000 Annual cost saving $25,000 Tax rate 34.74% Cost of capital 9.26% With this data what is cash flow 0?
Q: Title You require a density of 100 wireless clients in a relatively small area. Which design would…
A: The optimal design for a wireless network with a density of 100 wireless clients in a relatively…
Q: suppose your expectations regarding the stock market are as follows: State of the Economy…
A: Expected Return (E(r))We can compute the expected return using the following formula:E(r) = Σ (p(s)…
Q: Alternative dividend policies Over the last 10 years, a firm has had the earnings per share shown in…
A: Let's examine each dividend policy in greater detail and talk about its advantages and…
Q: Use the data from Q5, and given the following annualized interest rates: r(30) = 4.0%; r(120) =…
A: Step 1:1. Identity the floating rate for the 60-days period:The interest rate for 60days (or two…
Q: Munich Re Inc. is expected to pay a dividend of $4.82 in one year, which is expected to grow by 4% a…
A: Weighted Average Cost of Capital (WACC)A key indicator of the average interest rate a business…
Q: What is the value of $100,000 invested for a period of 20 years at 7% return
A: Therefore, the future value of $100,000 invested for a period of 20 years at a 7% return is…
Q: Please fast answer
A: Approach to solving the question:To calculate the standard deviation of returns for the portfolio,…
Q: In a simple linear regression based on 20 observations, it is found b1 = 3.05 and se(b1) = 1.30.…
A: FOR ANY QUERIES, PING ME HAPPY LEARNING
Q: 11.15b (Calculating MIRR) OTR Trucking runs a fleet of long-haul trucks and has recently expanded…
A: Step 1:let's calculate the Modified Internal Rate of Return (MIRR) for OTR Trucking's maintenance…
Q: 7. Given the following marginal revenue functions, R' (Q) terms of R(0). Hint: Lets say u=1+Q Oa.…
A:
Q: 茶 O Points: 0 of 1 Save Your client has $101,000 invested in stock A. She would like to build a…
A: Step 1: Step 2: Step 3: Step 4:
Q: Problem 9-10 Lauren Entertainment, Inc., has an 18 percent annual growth rate compared to the market…
A: The objective of this question is to calculate the Price to Earnings (P/E) ratio for Lauren…
Q: McConnell Corporation has bonds on the market with 15 years to maturity, a YTM of 6.6 percent, a par…
A: Given information: Face or Par value (FV) = $1,000 Bond Price (PV) = $1,256.50 As the bond pays semi…
Q: Hardyke Group operates a local after-school recreation and activities program. The Education…
A: Requirement b(b) Calculation of the price would Hardyke Group prefer:Price Hardyke prefers = Cost to…
Q: What is the correct formula for B9? 1 A Bond Valuation 2 Settlement Date 2/15/2018 3 Maturity Date…
A: The objective of the question is to find the correct formula for calculating the current yield of a…
Q: Ninecent Corporation has a target capital structure of 60 percent common stock, 5 percent preferred…
A: To calculate the Weighted Average Cost of Capital (WACC) for Ninecent Corporation, we'll follow…
Q: son.2
A: safetystock is extra inventory to prevent stockouts. using the inventory and sales data from 2019 to…
Q: Practice Question Solved: 8 Extensive Enterprise Inc. is expected to generate a free cash flow (FCF)…
A: Sure, let's break down the steps:1. **Calculate FCF₂ and FCF₃:** The free cash flows for the second…
Q: Am. 131.
A: Question: Calculating the Lease Value:a. Marginal Tax Rate of T = 0.307: Step 1: Calculate present…
Q: a company is deciding between two mutually exclusive projects. the cash flows are shown below. year…
A:
Q: None
A: b.) Profit = Exercise price - Current price= $910.00 - $900.96= $9.04
Q: The following is cash flow data for Rocket Transport: Cash dividend Purchase of bus Interest paid on…
A: A) Net cash provided by or used in investing activities Investing activities typically include cash…
Q: 9 Keedis Products has projected the following sales for the coming year: Q1 Q2 03 Q4 Sales $ 12,800…
A: Solution:Given,Sales of Q3 = $14175Sales of Q2 = $13350 First we will calculate payment for Q2…
Q: Which of the following invites broad community of people into a new product innovation process?…
A: The objective of the question is to identify the method that involves a broad community of people in…
Q: Use the following information to answer questions 3 - 8. The return for two companies, Alpha and…
A: PortfolioThus, the standard deviation of returns for the portfolio is 2.25%.
Q: F2
A: let's perform the calculations step by step:Initial Investment:Initial Investment = 0.75 * $26 *…
Q: Orca Industries is considering the purchase of Shark Manufacturing. Shark is currently a supplier…
A: Year Previous Cash FlowGrowth Factor(1+Growth Rate)Cash flow for the year(in million) Cash flow/…
Q: As a big firm's CFO, you must forecast the Year 1 cash flow for a proposed project with the…
A: The objective of the question is to calculate the Year 1 cash flow for a proposed project given the…
Q: Question 8( Mango Inc. is going to issue a 30-year bond with a coupon rate of 5,00% (with 2 coupon…
A: To calculate the change in the price of the bond due to the downgrade.First, we need to find the…
Q: Calculate the housing expense ratio and the total obligation ratio (in %) for the following mortgage…
A: Given Data for Martin:• Monthly Gross Income (MGI): $3,700• Monthly PITI Expense: $805 (This…
Q: Viable Enterprises, Inc. is seeking to float a new bond to pay for an expansion of the firm into the…
A: Calculating Altman Z-Score for Viable Enterprises:Step 1: Calculate RatiosWorking Capital Ratio =…
Q: Buy a stock for $30 a share, hold it for three years, and then sell it for $60 a share (the stock…
A: The calculation you provided is correct for approximating the annual yield of the stock. Let's break…
Q: None
A: • Amount Required for College Education of Grandson = $80,000• Time period in which such money is…
Q: Markman & Sons is considering Projects S and L. These projects are mutually exclusive, equally…
A: To determine the value forgone by choosing the project with the higher Internal Rate of Return…
Q: A U.S. company has British pound 2 million payables in 90 days. The company decide to use option…
A: Market Favors the Company: The key factor is the spot rate becoming $1.79/BP in 90 days. This means…
Q: 8. C. d. a. Firm-specific risk is measured by the residual standard deviation. Thus, stock A has…
A: Your answers for parts a, b, and c are correct! Let's discuss part d in more detail.d. The Security…
Q: Baghiben
A: Step 1:Horizontal analysis is presented hereunder:…
Q: How does an investment advisor deal with a situation where he is convinced the client’s investment…
A: Ethical issues that may arise in this situation include:Fiduciary Duty: Investment advisors must act…
Q: Memphis Co stock will pay its next dividend of $4.50 exactly one year from now. After this first…
A: Given information, Expected dividend in one year (D1) = $4.50Growth rate in next two years (gs) =…
Q: Kari is purchasing a home for $220,000. The down payment is 25% and the balance will be financed…
A: To calculate Kari's closing costs, find: Down Payment:Percentage = 25%Home Price = $220,000Down…
Q: provide correct answer step by step
A: The maturity risk premium (MRP) is the extra return demanded by investors for committing their money…
Q: Jasmine's Dresswear Manufacturers is preparing a strategy for the fall season. One alternative is to…
A: To calculate the Net Present Value (NPV) for both options, we'll multiply the cash flows by their…
Q: Vikarmbhai
A: Manufacturing Overhead is an account that accumulates all the indirect costs associated with…
Q: Nuclear Inc. just paid a $2.50 dividend. Dividends are expected to grow by 28% in year 1, by 23% in…
A:
Q: If you want to be paid from a 11 year ordinary annuity with a guaranteed rate of 5.929% compounded…
A: Step 1: The calculation of the principal AB1Years112Interest rate5.929%3Annual receipt $ 4,000.00…
Q: What is the Scatterplots and regression lines, what are the differences amomg them?
A: Scatterplots and regression lines are both tools used to analyze data, but they serve different…
Q: 3- Suppose you had $100,000 in investments at the beginning of the year that consisted of a…
A: Step 1: Determine the current values of your stock and bond investments.In this step, you need to…
Q: Topic 13: Renting versus Buying 123. Jennifer is choosing between buying a condominium property and…
A: Part 2: Explanation:Step 1: Calculate the total cost of buying the condominium:- Purchase price:…
Q: Mom's Cookies, Inc., is considering the purchase of a new cookie oven. The original cost of the old…
A: The objective of this question is to calculate the Free Cash Flow (FCF) for each year from 0 to 6…
Q: F1
A: Question 1In accounting, the breakeven point is calculated by dividing the fixed costs (fixed and…
Step by step
Solved in 2 steps
- Cost of new equipment: $200,000 Installation: $20,000 Change in Net Operating Working Capital: $50,000 New sales per year: $115,000 New operating costs per year: $50,000 Economic life: 4 years Depreciable life: MACRS 3-year class (33%, 45%, 15%, 7%) Salvage value: $20,000 Tax Rate: 25% WACC: 9% What is the total initial investment outlay (FCF0)? What is the operating cash flow for year 2, or FCF2? (SHOW ALL WORK/STEPS) What are the planned non-operating cash flows in year 4 (i.e. terminal cash flows)? (SHOW ALL WORK/STEPS) What is the book value of the equipment after three years?MACHINE A MACHINE B INITIAL COST R100 000 R110 000 EXPECTED ECONOMIC LIFE 5 YEARS 5 YEARS EXPECTED DISPOSAL/RESIDUAL VALUE R10 000 EXPECTED NET CASH INFLOWS R R END OF: YEAR 1 34 000 33 000 YEAR 2 27 000 33 000 YEAR 3 32 000 33 000 YEAR 4 30 000 33 000 YEAR 5 26 000 33 000 DEPRECIATION PER YEAR 18 000 22 000 COMPANY ESTIMATES COST CAPITAL = 14% 3)Calculate the net present value of each machineCost of equipment: $80,000 Expected annual cost savings to be provided by new equipment: $32,000 Useful life of the equipment: 6 years Salvage value at the end of 6 years: $5000 • Cost of capital: 16% Required: A. What would be the net present value (NPV) of new Machine
- Given the two machines’ data Machine A Machine B First Cost P8,000.00 P14,000.00 Salvage value 0 2,000.00 Annual operation 3,000.00 2,400.00 Annual maintenance 1,200.00 1,000.00 Taxes and insurance 3% 3% Life, years 10 15 Money is worth at least 16% Using equivalent uniform annual cost method, determine the value of alternative A and alternative B:RLC Manufacturing is planning to purchase a cutting equipment. Information are as follows: Equipment 1 Equipment 2 First Cost P 12,000 P 18,000 Salvage Value P 600 P 2,000 Annual Operation P 3,200 P 2,500 Annual Maintenance P 1,200 P 1,000 Taxes & Insurance 3% 3% Life, years 10 15 Money is worth at least 16%. Which equipment should be selected? Use: a. Rate of Return Method Rate of Return Method Annual Cost Method NOTE: Show cashflow diagram.H7. Query Company is considering an investment in machinery with the following information. Initial investment $ 200,000 Materials, labor, and overhead (except depreciation) $ 45,000 Useful life 9 years Depreciation—Machinery 20,000 Salvage value $ 20,000 Selling, general, and administrative expenses 5,000 Expected sales per year 10,000 units Selling price per unit $ 10 (a) Compute the investment’s annual income and annual net cash flow. (b) Compute the investment’s payback period. Please show all step by step calculation
- 1 An equipment costs P45,000 with an economic life of 18 years. Its salvage value is P12,000. Maintenance cost is done every 5 years for P6000. Operating cost is 4000 annually. Money is worth 12%. Compute for its capitalized cost.Project Y requires a $350,000 investment for new machinery with a four-year life and no salvage value. The project yields the following annual results. Cash flows occur evenly within each year. Annual Amounts Project Y Sales of new product $350,000 Expenses Materials, labor, and overhead (except depreciation) 157,500 Depreciation—Machinery 87,500 Selling, general, and administrative expenses 49,000 Income $56,000 Revelant Time Value of Money factors: PV $1 (8%, 4 years): 0.7350 PVA $1 (8%,…A MACHINE COSTS P 7,000,000.00 LAST 4 YEARS AND HAS A SALVAGE VALUE OF P 350,000. USE DELINING BALANCE METHOD AND DOUBLE DECLINING BALANC EMETHODTO DETERMINE:A) THE DEPRECIATION CHARGES FROM YEAR 1 THROUGH 4B) THE BOOK VALUE AT THE END OF EACH YEAR OF LIFE.C) COMPARE THE CASH FLOWS BETWEEN THE THWO METHODS
- The information below relates to the purchase of equipment: investment in the project: $10,000 Net annual cash inflows: 2,400 Working capital required: 5,000 Salvage value of the equipment: 1,000 Life of the project: 8 years At the completion of the project, the working capital will be released for use elsewhere. Compute the net present value of the project, using a discount rate of 10% $606 $8,271 ($1,729) $1,729A company is considering buying a new machine. Specific details: Initial Investment $400,000 Annual Cash Revenues $375,000 Annual Cash Expense $262,000 Expected Life 5 Years Salvage Value $0 Discount Rate 10% All cash flows are after tax. 1 Prepare a schedule that shows the applicable cash flows and other relevant items for this decision 2 Compute the payback period for the new machine 3 Compute the Accounting Rate of Return (ARR) for the new machine
