Nyam-BiscoCookie Company wants to introduce a new product, Rolling In Dough Pies. The initial investment would be $180,000 and the cost of capital is 40%. Based upon the following cash flows and a comparative rate of 50%, use theIRRas your decision criterion to advise the company’s CFO on what to do. 1          $80,000 2          $95,000 3          $95,000 4          $110,000 5          $110,000 6          $110,000

Imagineering, Inc., is considering an investment in CAD-CAM compatible design software with the cash flow profile shown in the table below. Imagineering’s MARR is 18 %/year. EOY Cash Flow 0 -$12,000,000 1 -$1,000,000 2 $5,000,000 3 $2,000,000 4 $5,000,000 5 $5,000,000 6 $2,000,000 7 $5,000,000 What is the annual worth of this investment?

An electronic company is thinking of investing to an equipment in a new business venture with a 15% minimum attractive rate of return. The following in the table are the estimates that were drawn by the firm. Determine how sensitive the business is to the estimates on the: $30,000 $20,000 $5,000 $1,000 5 years Capital investment Annual revenues c. Capital investment d. Annual revenue Annual expenses Market value Useful life State your conclusion.

The CEO of J&B, Ld., would like to propose in the next Council meeting a rise of capital as one of the possible ways to increase the forecast of the working capital for the next financial year and reached 6,000,000 €. This number will allow the company to have a degree of robustness comparable to other competitive companies in the industry. Daily Amount Average Deferments (days) Raw Materials 60.000 10 Salaries 150.000 Overheads 90.000 If the operating cycle is 30 days, what should the manager answer if a director asks him about the average deferment of the overheads?

Salsa Company is considering an investment in technology to improve its operations. The investment costs $250,000 and will yield the following net cash flows. Management requires a 9% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Year 1 2 3 4 5 Net cash Flow $ 47,900 53,700 75,600 95,500 126, 200 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. 3. Determine the net present value for this investment. 4. Should management invest in this project based on net present value? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the payback period for this investment. (Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place.) Year Initial investment Year 1 Year 2 Year 3 Year 4 Year 5 Payback period = Net Cash Flows $ (250,000) 47,900 53,700 75,600…

The Sugar Cookie Company needs to raise $200 million for a project. If external financing is used, the firm faces flotation costs of 6% for equity and 3% for debt. If the project is financed 60% with equity and 40% with debt, how much cash must the firm raise in order to finance the project? O A. O B. O C. O D. OE. $212.31 million $175.16 million $161.57 million $210.08 million $209.42 million

Salsa Company is considering an investment in technology to improve its operations. The investment costs $241,000 and will yield the following net cash flows. Management requires a 10% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year Net cash Flow 1 $ 48, 200 2 53,900 3 76, 400 4 95,500 5 126,500 Required: Determine the payback period for this investment. Determine the break - even time for this investment. Determine the net present value for this investment. Should management invest in this project based on net present value?

Salsa Company is considering an investment in technology to improve its operations. The investment costs $243,000 and will yield the following net cash flows. Management requires a 9% return on investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1) Note: Use appropriate factor(s) from the tables provided. Year 1 2 3 4 5 Net cash Flow $ 47,700 52,500 75,900 95,800 125,800 Required: 1. Determine the payback period for this investment. 2. Determine the break-even time for this investment. 3. Determine the net present value for this investment. 4. Should management invest in this project based on net present value? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Determine the payback period for this investment. Note: Enter cash outflows with a minus sign. Round your Payback Period answer to 1 decimal place. Cumulative Net Cash Year Net Cash Flows Flows Initial investment $ (243,000) $ (243,000) Year 1 47,700 Year 2 52,500…

A company is thinking in investing in one of two potential new products for sale. The projections are as follows:  year Revenue/cost £ (Product S)  Revenue/cost £ (Product V) 0 (150,000) outlay (150,000) outlay 1 14000 15000 2 24000 25333 3 44000 52000 4 84000 63333 a) Calculate the IRR for Product V only using 1% and 17% to 2 d.p.b) Outline the advantages and disadvantages of the IRR and payback using appropriate academic sources.

Below are four cases that you will have to solve using Excel spreadsheets. 2nd case The COMPETIDORA SA company has the possibility of investing in three different projects . The projections show us the following information on which a decision must be made: PROJECT X Y Initial Z$310,000 It is requested: investment $180,000 $250,000 Year 1 cash flows $50,000 $80,000 $150,000 1. Determine the internal rate of return. 2. Determine the present value. Year 2 cash flows 3. Determine the recovery period. 4. Define which is the most viable project. $70,000 $80,000 $120,000 The discount rate for the project will be 9% and the investors propose a MARR of 22%. Year 3 cash flows $80,000 $80,000 $100,000 Year 4 cash flows $100,000 $80,000