QUESTION 16 Find the crossover rate with the following information. Required rate of return: 8% Year 0 1 2 3 CFS -$2000 $750 $750 $750 $750 CFL -$6,000 $2,500 $2,500 $1,800 $1,500 16.25% 12.45% O 14.49% O 15.27%
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- A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: A4 9a EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. a. Calculate the EBIT, Depreciation, Changes in NWC, and net capital spending for the next four years.(Related to Checkpoint 5.2) (Future value) To what amount will $5,000 invested for 8 years at 9 percent compounded annually accumulate? Question content area bottom $5,000 invested for 8 years at 9 percent compounded annually will accumulate to $enter your response here. (Round to the nearest cent.)13 If normal earnings is 50000 JD, and expected future earnings 76000 JD discount rate 20%. Compute goodwill (step five). Select one: a. 130000 b. 125000 c. 135000 d. 140000
- =NPV(B26,I27:R27)-B24 B26 = discount rate of 9% B24 = initial investment of $30m I27:R27 = yearly cash flows: what are the cash flows for each year?Q5: Solve the following two independent scenarios: A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx downloadto prove your answer above: Using the appropriate EXCEL spreadsheet, the answer = PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67). B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate? Future Value PV FV Tables Factor Net Present Value PLEASE NOTE: All FV Factors will be rounded to three…Acompany’sMARRis 10% per year. Two mutually exclusive alternatives are being considered. Compare the two alternatives utilizing: Solve, a. The repeatability assumption with a 10-year study period. b. A five-year study period (MV5 of Alt. 1 is $45,000).
- Q8 What annual rate of return is earned on a $4,000 investment made in year 2 when it grows to $7,600 by the end of year 8? (Do not round intermediate calculations. Round your answer to 2 decimal places.) ANNUL RATE OF RETURN?2. A P100 investment yields P112.55 in one year. The interest on the investment was compounded quarterly. From this information, what was the stated rate or APR of the investment? a.12.55%b.12.25%c.12.15%d.12.00%nt question Q1. Find the present value of 30 annual payments of $2,000 per annum where the first payment is made 14 years from now. So there are 30 annual payments from t=14 to t=43 inclusive. The discount rate is 5% pa. The present value of these payments is: Question 8Select one: a. $4,908.18 b. $16,304.68 c. $21,212.85 d. $30,282.15 e. $30,744.9
- Ch 5. ABC Company has the following mutually exclusive projects. Year Project A Project B 0 -$19,520 -$16,800 1 11,500 9,500 2 8,750 7,100 3 2,500 3,500 If the company uses the Profitability Index to rank these two projects, which project should be chosen if the appropriate discount rate is 15 percent? Group of answer choices Project B Both projects Project A Neither projectsAssume a $40,000 investment and the following cash flows for two alternatives. Year Investment A Investment B 1 $10,00 10,000 2 10,000 20,000 3 15,000 25,000 4 10,000 - 5 20,000 - a. Calculate the payback for investments A and B. (Round your answers to 2 decimal places.) b. Which investment would you select under the payback method? multiple choice 1 Investment A Investment B c. If the inflow in the fifth year for Investment A was $20,000,000 instead of $20,000, would your answer change under the payback method? multiple choice 2 Yes NoProblem 10-10 (Algo) Interest capitalization; weighted-average method [LO10-7] On January 1, 2021, the company obtained a $3 million loan with a 12% interest rate. The building was completed on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 1,230,000 March 1, 2021 720,000 June 30, 2021 380,000 October 1, 2021 670,000 January 31, 2022 990,000 April 30, 2022 1,305,000 August 31, 2022 2,340,000 On January 1, 2021, the company obtained a $3 million construction loan with a 12% interest rate. Assume the $3 million loan is not specifically tied to construction of the building. The loan was outstanding all of 2021 and 2022. The company’s other interest-bearing debt included two long-term notes of $5,600,000 and $7,600,000 with interest rates of 8% and 10%, respectively. Both notes were outstanding during all of 2021 and 2022. Interest is paid annually on all debt. The company’s fiscal year-end is…