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Write a minimum of 150 words addressing: Explain why the timing and quantity of cash flows are important in capital investment decisions.
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- What is the MIRR for the project using a 12% Cost of Capital? Show in a timeline format. Year Cash Flow in $ 0 ($1000) 1 400 2 400 3 600he capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $50,400 $157,000 $106,000 $251,000 2 50,400 157,000 81,000 212,000 3 50,400 157,000 40,000 149,000 4 50,400 157,000 18,000 102,000 5 50,400 157,000 7,000 71,000 Total $252,000 $785,000 $252,000 $785,000 Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8…Which of the following items are required to analyze a capital expenditure? (Select all that apply.) - EBIT - the initial cash outlay - evaluation of the future cash flows - the projected future cash flows from the investment
- The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $48,000 $152,000 $101,000 $243,000 2 48,000 152,000 77,000 205,000 3 48,000 152,000 38,000 144,000 4 48,000 152,000 17,000 99,000 5 48,000 152,000 7,000 69,000 Total $240,000 $760,000 $240,000 $760,000 Each project requires an investment of $480,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 15% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8…Please answer the question Minimum 150 words Why the short-term source of capital should be matched with the working capital ?The financial manager has determined the following schedules for the cost of funds: Cost of the Ratio Cost of Debt Equity 0% 5% 13% 10 5 13 20 5 13 30 5 13 40 5 14 50 6 15 60 8 16 a. Determine the firm’s optimal capital structure. b. Construct a simple pro forma balance sheet that shows the firm’s opti- mal combination of debt and equity for its current level of…
- The capital investment committee of Iguana Inc. is considering two capital investments. The estimated operating income and net cash flows from each investment are as follows: Year Robotic AssemblerOperating Income Robotic AssemblerNet Cash Flow WarehouseOperating Income WarehouseNet Cash Flow 1 $35,000 $65,000 $21,000 $51,000 2 25,000 55,000 21,000 51,000 3 20,000 50,000 21,000 51,000 4 15,000 45,000 21,000 51,000 5 10,000 40,000 21,000 51,000 Total $105,000 $255,000 $105,000 $255,000 Each project requires an investment of $150,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 12% for purposes of the net present value analysis. Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636 0.572 0.482 5 0.747 0.621 0.567 0.497 0.402 6 0.705 0.564 0.507 0.432 0.335 7 0.665 0.513 0.452 0.376 0.279 8 0.627…Make sure that you are drawing the Cash Flow Diagrams as well as listing out the factors used, then the inputs to those factors. answ 1496.91the following table tracks the main components of net working capital over the life of a 4-year project. calculate the investment in net working capital in year 3. in the presented answers, a negative number represents a cash outflow (additional investment) and a positive number represents a cash inflow (recapture of a previous investment). year 1 year 2 year 3 year 4 year 5 Accounts receivable 0 156,000 231,000 196,000 0 inventory 78,000 133,000 133,000 98,000 0 accounts payable 26,500 51,500 53,000 36,500 0
- You are given three investment alternatives to analyze. The cash flows from these three investments are as follows: Investment End of Year A B C 1 $ 3,000 $ 1,000 $ 5,000 2 4,000 1,000 5,000 3 5,000 1,000 (5,000) 4 (6,000) 1,000 (5,000) 5 6,000 5,000 15,000 (Click on the icon in order to copy its contents into a spreadsheet.) What is the present value of each of these three investments if the appropriate discount rate is 14 percent? Question content area bottom Part 1 a. What is the present value of investment A at an annual discount rate of 14 percent? $ enter your response here (Round to the nearest cent.)The capital investment committee of Arches Landscaping Company is considering two capital investments. The estimated income from operations and net cash flows from each investment are as follows: Front-End Loader Greenhouse Year Income fromOperations Net CashFlow Income fromOperations Net CashFlow 1 $46,800 $144,000 $98,000 $230,000 2 46,800 144,000 75,000 194,000 3 46,800 144,000 37,000 137,000 4 46,800 144,000 16,000 94,000 5 46,800 144,000 8,000 65,000 Total $234,000 $720,000 $234,000 $720,000 Each project requires an investment of $520,000. Straight-line depreciation will be used, and no residual value is expected. The committee has selected a rate of 10% for purposes of the net present value analysis. Present Value of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 0.890 0.826 0.797 0.756 0.694 3 0.840 0.751 0.712 0.658 0.579 4 0.792 0.683 0.636…Duo Corporation is evaluating a project with the following cash flows: \table[[Year,Cash Flow],[0,-$15,100
