One method of analyzing the financial feasibility of a farm land investment involves comparing the investment's cash flow with the Required debt repayment in the first year of the investment O Number of tractors/implements required to efficiently work the land Size of the operating loan Cash flow from other operations
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- Capital and operational budgets have recently been impacted by the slow economic by the slow economic growth with negative spillovers on service delivery related to infrastu-ructure roll-oits. assess the importance of infrastructure in local economic development in South Africa and other developing economiesYour boss, whose background is in financial planning, is concerned about the company’s high weighted average cost of capital (WACC) of 25%. He has asked you to determine what combination of debt-equity financing would lower the company’s WACC to 15%. If the cost of the company’s equity capital is 6% and the cost of debt financing is 29%, what debt-equity mix would you recommend?Your boss, whose background is in financial planning, is concerned about the company’s highweighted average cost of capital of 21%. He has asked you to determine what combination of debtequity financing would lower the company’s WACC to 13%. If the cost of the company’s equity capital is 6% and the cost of debt financing is 28%, what debt-equity mix would you recommend?
- The owner of the monitoring business falls ill with a serious disease. He dies. The family firmly believes that the company will stay them. But they are told that they are left without anything, since the business is passed through another company, which is registered on the wife of a shareholder who does not invest money in monitoring at all.How do you think the family can return the company. Can they get money from the project? The money from the monitoring came from clients (as a subscription fee) recruited by the former deceased shareholder.Medzyme Pharmaceuticals has maintained a 50–50 D-E mix for capital investments. Equity capital has cost 11%; however, debt capital that has historically cost 9% is now 20% higher than that. If Medzyme does not want to exceed its historical weighted average cost of capital (WACC), and it is forced to go to a D-E mix of 75–25, the maximum acceptable cost of equity capital is closest to: (a) 7.6% (b) 9.2% (c) 9.8% (d ) 10.9%A $10,000 mortgage bond with a bond interest rate Of 8% per year, payable quarterly, was purchased for $9200. The bond was kept until it was due, a total of 7 years. What rate of return was made by the purchaser per 3 months and per year. (nominal) 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 sure.
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- Mid-Valley Industrial Extension Service, a state-sponsoredagency, provides water quality sampling services toall business and industrial firms in a 10-county region.Last month, the service purchased all necessary lab equipmentfor full in-house testing and analysis. Now, an outsourcingcompany has offered to take over this function ona per-sample basis. Data and quotes for the two optionshave been collected. The MARR for government projectsis 5% per year and a study period of 8 years is chosen.In-house: Equipment and supplies initially cost$125,000 for a life of 8 years, an AOCof $15,000, and annual salaries of$175,000. Sample costs average $25.There is no significant salvage valuefor the equipment and supplies currentlyowned.Outsourced: Cost averages $100 per sample for thefirst 5 years, increasing to $125 persample for years 6 through 8. Use a spreadsheet to graph the AW curves for both options for test loads between 0 and 5000 per year in increments of 1000 tests. What is the…8.24 The Ecology Group wishes to purchase a piece of equipment for various metals recycling. Machine 1 costs $123,000, has a life of 10 years, an AOC of $5000, and requires one operator at a cost of $24 per hour to process 10 tons per hour. Machine 2 costs $70,000, has a life of 6 years, an AOC of $2500, and requires two operators at a cost of $24 per hour for each operator to process 6 tons per hour. a. Determine the breakeven tonnage of scrap metal at i = 7% per year and select the better machine for a processing level of 1000 tons per year.Contour crafting was invented by a creative genius engineer whose idea was originally focused on constructing molds for industrial parts. He later expanded his thinking to rapid home and building construction to help during storm recovery. Think of it as 3-D printing of a home where electrical, plumbing, utilities, custom electronics, and such are installed as the home is "printed" layer by layer and potentially in one day. Precision computer-controlled near-concrete material is applied layer by layer by an apparatus with material feed, various controls for shaping in three dimensions, electronic connections, and for larger applications it uses lattice-like tower elements for support and control of the configuration. Consider a "CC Apparatus" of the appropriate size for contour crafting an industrial building. The initial cost is $215,000 and may be sold in year t for 0.6^t of the original price. Operating costs are $65,000 the 1st year, increasing by 6% per year. Due to the continual…