a. If the appropriate discount rate is 15 percent and all cash flows are received at year's end, what is the price per share of Rite Bite stock? Price per share $ 43.05 b. Rite Bite has decided to produce toothbrushes. The project requires an immediate outlay of $17.3 million. In one year, another outlay of $6.3 million will be needed. The year after that, earnings will increase by $4.5 million. That profit level will be maintained in perpetuity. What will the new stock price be if the project is undertaken? Price per share $

Pendleton Products has a project requiring an initial cash investment of $3,100. The project is expected to return $1,000 each period for the next 5 periods, and it has a discount rate of 4%.1. Determine how long it will take, if at all, for the project to have a positive payback.Present value formula:

NPV.  Miglietti Restaurants is looking at a project with the following forecasted​ sales: ​ first-year sales quantity of 33,000​, with an annual growth rate of 4.00​% over the next ten years. The sales price per unit will start at ​$41.00 and will grow at 2.00% per year. The production costs are expected to be 55​% of the current​ year's sales price. The manufacturing equipment to aid this project will have a total cost​ (including installation) of ​$2,100,000. It will be depreciated using​ MACRS, and has a​ seven-year MACRS life classification. Fixed costs will be ​$360,000 per year. Miglietti Restaurants has a tax rate of 40​%. What is the operating cash flow for this project over these ten​ years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for ​$140,000 at the end of the​ ten-year project and the cost of capital for this project is 8​%. MACRS Fixed Annual Expense Percentages by Recovery Class              Year ​3-Year…

Vishano

A firm is considering a new inventory system that will cost $120,000.  The system is expected to generate positive cash flows over the next four years in the amounts of $35,000 in year 1, $55,000 in year 2, $65,000 in year 3, and $40,000 in year 4.  The firm’s required rate of return is 9%.  What is the payback period of this project?     1.95 years     2.46 years     2.99 years     3.10 years Based on the information from Question 47.  What is the net present value (NPV) of the project?     $28,830.29     $30,929.26     $36,931.43     $39,905.28 Based on the information from Question 47, what is the internal rate of return (IRR) of this project?     14.03%     17.56%     19.26%     21.78% Based on the information from Question 47, what is the profitability index (PI) of this project?     0.87     1.11     1.31     1.83.

NPV. Miglietti Restaurants is looking at a project with the following forecasted sales: first-year sales quantity of 34,000 , with an annual growth rate of 4.00% over the next ten years. The sales price per unit will start at $45.00 and will grow at 2.00% per year. The production costs are expected to be 55% of the current year's sales price. The manufacturing equipment to aid this project will have a total cost (including installation) of $2,400,000. It will be depreciated using MACRS, 囲, and has a seven-year MACRS life classification. Fixed costs will be $360,000 per year. Miglietti Restaurants has a tax rate of 359 /hat is the operating cash flow for this project over these ten years? Find the NPV of the project for Miglietti Restaurants if the manufacturing equipment can be sold for $140,000 at the end of the ten-year project and the cost of capital for this project is 7%. What is the operating cash flow for this project in year 1 ? (Round to the nearest dollar.) Data table MACRS…

Nikul

A capital investment has an initial cost of $566,000. At the end of each of the next 9 years, it is expected to produce cash inflows of $143,000 and cash outflows of $53,000. After 9 years, it is expected to have a residual value of $17,000. Using a discount rate of 7%, what is this investment's net present value?.