How long must development last to change the decision? or the decision to change, development must last years, or longer. (Round to two decimal place
Q: How do I calculate and record the related after tax cash flow effect(s)?
A: THE FOLLOWING IS THE ANSWER
Q: 9. Money is mvested at 10.5% nommal annual rate. Interested is compounded monthly. How much will $15...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: A loan of P8,000 will be amortized by payments at the end of each quarter for 8 years and 9 months. ...
A: 1. Calculate the amount of periodic payments by using the EXCEL PMT formula. Note that there are 35 ...
Q: how much will be in the account at the end of the 20years?
A: Future Value: It is the future worth of the present annual cash flow stream and is computed by compo...
Q: Find the compound amount and the amount of interest earned by the deposit below. $9,000 at 7.79% com...
A: Deposit amount (P) = $9000 Interest rate (r) = 7.79% Period (t) = 3 years Mathematics constant (e) =...
Q: Mrs Chauke is 66 years old. She earns R180 per hour and works eight hours a day from Monday to Frida...
A: The Gross Pay: The gross pay is the total salary earned for the number of hours worked for a given p...
Q: Compute for the following. Given the uneven streams of cash flows shown in the following table, answ...
A: The present discounted value (PDV) is an estimate of the total amount of money received over a speci...
Q: Q2.4. An arithmetic cash flow gradient series equals $500 in year 1, $600 in year 2, and amounts inc...
A:
Q: how to exploit the connection between the business cycle and industry analysis?
A: A business cycle, often known as a "trade cycle" or "economic cycle," is a sequence of stages in the...
Q: Operating cash flows reflect changes in the level of net working capital. The statement is : a Par...
A: Operating cash flow is the cash generated from business operations. It shows whether a company can g...
Q: George is loaned $100,000 in Year 0. Approximately (round up to the nearest year) rs will it take hi...
A: Loan Amount = $100,000 Interest Rate = 4% Payment in 1 Year = $10,000
Q: Josh Liu has been investing in the stock market for several years, beginning when he was a freshman ...
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...
Q: Jean Co. sponsors a defined benefit pension plan. For the current year ended December 31, the follow...
A: Since you have posted a question with multiple sub parts but as per our guidelines we will be solvin...
Q: A man loans $10,000, part at 6% annual interest and the rest at 11%. The annual total income from th...
A: The various Loans can be taken on various interest rates. This is done to maintain the total interes...
Q: Consider the following figures from the balance sheet of Calcutta Merchants Club: Current Assets Rs...
A: Shareholder Equity: It can be described as the residual claim of the owners of the company after al...
Q: Solve the following problem. 1. Compute for the compound amount and compound interest on 1, 250, 000...
A: We need to use compound interest formula given below to calculate compound amount and compound inter...
Q: The current price of silver is $206 per ounce. The storage cost is $1 ounce per year, payable quarte...
A: The current price is $206 per ounce. Storage cost $1
Q: Calculating the Number of Periods You've been offered an investment that will pay you 7 percent per ...
A: Future Value The future value is the amount that will be received at the end of a certain period. Th...
Q: Gina has an opportunity to save $260 per month at an APR of 6.35% in a 401K plan through work. She p...
A: Investment means engaging your funds to generate income for the future. There are various purposes f...
Q: what is the PV of his investment if he lives for the next 20 years.
A: Present Worth: It is the present value of the future annual cash flows stream and is calculated by ...
Q: Nova Electronics found that a computer part was listed at the same suggested retail price in catalog...
A: Discount price is the price which the seller offers to the buyer. This price is the reduced price wh...
Q: Goliath Corp. just paid an annual dividend of $5.40 per share. The dividend growth rate is 5.5 perce...
A: Annual dividend (D0) = $5.40 Growth rate (g) = 5.5% Tax rate = 21% Stock price (P0) = $58.50
Q: 15–10. (Analyzing coverage ratios) The income statements for Lowe's Companies, Inc. (LOW), spanning ...
A: Interest Earned Ration is the ratio which is calculated with the help of Operating Income which is d...
Q: Five deposits are made at the EOYS of years 2021-2025, as shown in the CF table above. If the intere...
A: Interest Rate = 6% Time Period = 10 Years
Q: If a company borrows $50,000 to build a new showroom, resulting in an additional $10,000 in sales pe...
A: Given, Amount borrowed $50,000. Amount of sales $10,000.
Q: In what circumstances can a taxpayer challenge an assessment outside the ordinary appeal process. Di...
A: In matters determined by the Regional Trial Court in the exercise of its original jurisdiction, an a...
Q: What are deep-in-the money currency options? Why is writing deep-in-the-money currency options tanta...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: Calculate the yield to maturity (YTM) a 10-year bond of semi-annually paid coupon rate 6% if you pur...
A: Given, Purchase price of the bond is $900. Coupon rate is 6% compounded semi annually
Q: 693.97 per ounce for a four-month futures contract, what is the potential carry trade profit per oun...
A: Carry trade off would be the profit available after the cost of carry and interest rate on the gold.
Q: Communications does not currently pay a dividend. You expect the company to begin paying a dividend ...
A: Price of stock can be determined from the constant growth dividend model considering the growth rate...
Q: Suppose a world has two risky assets: StkC and StkD. The following table shows the holding period re...
A: First, we will calculate the Expected Return for Stock C and Stock D then we will find out the Stand...
Q: How do I compute the excess present value index for each of the five proposals? (Rounding answers to...
A: pv index= pv of cash inflows /pv of cash outlfows
Q: A Corporation believes that it can sell long term-bonds with an 8% coupon rate, although the effecti...
A: Corporate bond kind of debt issued by profit-generating organizations. These bonds are risky, unlike...
Q: To provide for university education fees, money needs to be saved today. What single amount is neede...
A: Present Value: The present value is the value of cash flow stream or the fixed lump sum amount at t...
Q: You want to buy a motorcycle for $13,500 plus freight of $105 and other delivery charges of $125. Yo...
A: Cost of Motorcycle = $13,500 Freight = $105 Other delivery charges = $125 Total value of Motorcycle ...
Q: Find the simple interest and maturity value. 1. 240, 000 at 6% for 5 years 2. 780, 000 at 4% for 13 ...
A: We know that simple interest can be computed using the formula given below. Simple Interest = Princi...
Q: ears. The company's required rate of return is 10% and pays tax at a 35% rate. The projects with be ...
A: Given information : Year Cash flows A Cash flows B 0 -20000 -20000 1 4000 6600 2 4000 8300...
Q: Moving has 7,400 shares of stock outstanding at a market price per share of $18. Discount Shipping h...
A: Mergers are done to increase the value of shares after merger so that over all value of merged compa...
Q: Companies are more apt to choose repurchases over dividends if doing so will enable them to I. take...
A: When a company decides to buy back its own stock from the market, this is known as a share repurchas...
Q: A company has to select one of the following two projects: Project A 25,000 Project B 23,000 Cost Ca...
A: First cost = C Cash flows in year n = CFn Let r = IRR
Q: Do Ratio Analysis of Allied Food Products. Interpret the answers. (Current ratio, quick ratio, debt ...
A:
Q: what does it mean if the npv and irr are both negative quora, should the company invest in the proje...
A: Capital Budgeting entails long-term planning and monitoring of capital expenditures, as well as a ra...
Q: Mr. Abella owes Mr. Divinagracia the following obligations. (1) P100 due at the end of 10 years.(2) ...
A: First obligation (X1) = P 100 in 10 years Second obligation (X2) = P 200 in 5 years + Interest at 5%...
Q: n investing, risk and return are highly correlated. Increased potential returns on investment usuall...
A: As you have asked multiple questions, we will solve the first question as per the policy presented b...
Q: What is the purpose and workings of the Monetary policy transmission mechanism (MPTM)? What are the ...
A: Monetary transmission technique or the mechanism is referred to as the process through which the pri...
Q: ner will IKto a special bank account at the end of each of 10 years beginning December 31, 2021. Ass...
A: Future Value of Annuity: It represents the future worth of the present annuity cash flow stream and...
Q: An increase in Accounts Receivables is : a A negative item for calculating Operating Cash Flow b ...
A: Accounts receivables is that amount of the total sales which customers still owe to the firm.
Q: Calculating Present Values Imprudential, Inc., has an unfunded pension liability of $645 million tha...
A: The present value is calculated as per the time value of money concept
Q: The current price of silver is $206 per ounce. The storage cost is $1 ounce per year, payable quarte...
A: Current price = $206 Quarterly storage cost payable in advance (q) = $1 = $0.25 Interest rate (r) = ...
Q: How long will the given principal P take to reach the aiven maturity value A at the given simple int...
A: 1. Calculate the time (T) taken for the principal to reach the maturity value by equating the amount...
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Jasmine Manufacturing is considering a project that will require an initial investment of $52,000 and is expected to generate future cash flows of $10,000 for years 1 through 3, $8,000 for years 4 and 5, and $2,000 for years 6 through 10. What is the payback period for this project?Gina Ripley, president of Dearing Company, is considering the purchase of a computer-aided manufacturing system. The annual net cash benefits and savings associated with the system are described as follows: The system will cost 9,000,000 and last 10 years. The companys cost of capital is 12 percent. Required: 1. Calculate the payback period for the system. Assume that the company has a policy of only accepting projects with a payback of five years or less. Would the system be acquired? 2. Calculate the NPV and IRR for the project. Should the system be purchasedeven if it does not meet the payback criterion? 3. The project manager reviewed the projected cash flows and pointed out that two items had been missed. First, the system would have a salvage value, net of any tax effects, of 1,000,000 at the end of 10 years. Second, the increased quality and delivery performance would allow the company to increase its market share by 20 percent. This would produce an additional annual net benefit of 300,000. Recalculate the payback period, NPV, and IRR given this new information. (For the IRR computation, initially ignore salvage value.) Does the decision change? Suppose that the salvage value is only half what is projected. Does this make a difference in the outcome? Does salvage value have any real bearing on the companys decision?Caduceus Company is considering the purchase of a new piece of factory equipment that will cost $565,000 and will generate $135,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further instructions on internal rate of return In Excel, see Appendix C.
- Mason, Inc., is considering the purchase of a patent that has a cost of $85000 and an estimated revenue producing lite of 4 years. Mason has a required rate of return that is 12% and a cost of capital of 11%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Manzer Enterprises is considering two independent investments: A new automated materials handling system that costs 900,000 and will produce net cash inflows of 300,000 at the end of each year for the next four years. A computer-aided manufacturing system that costs 775,000 and will produce labor savings of 400,000 and 500,000 at the end of the first year and second year, respectively. Manzer has a cost of capital of 8 percent. Required: 1. Calculate the IRR for the first investment and determine if it is acceptable or not. 2. Calculate the IRR of the second investment and comment on its acceptability. Use 12 percent as the first guess. 3. What if the cash flows for the first investment are 250,000 instead of 300,000?Gardner Denver Company is considering the purchase of a new piece of factory equipment that will cost $420,000 and will generate $95,000 per year for 5 years. Calculate the IRR for this piece of equipment. For further Instructions on internal rate of return in Excel, see Appendix C.
- If a copy center is considering the purchase of a new copy machine with an initial investment cost of $150,000 and the center expects an annual net cash flow of $20,000 per year, what is the payback period?Buena Vision Clinic is considering an investment that requires an outlay of 600,000 and promises a net cash inflow one year from now of 810,000. Assume the cost of capital is 10 percent. Required: 1. Break the 810,000 future cash inflow into three components: a. The return of the original investment b. The cost of capital c. The profit earned on the investment 2. Now, compute the present value of the profit earned on the investment. 3. Compute the NPV of the investment. Compare this with the present value of the profit computed in Requirement 2. What does this tell you about the meaning of NPV?Your company is planning to purchase a new log splitter for is lawn and garden business. The new splitter has an initial investment of $180,000. It is expected to generate $25,000 of annual cash flows, provide incremental cash revenues of $150,000, and incur incremental cash expenses of $100,000 annually. What is the payback period and accounting rate of return (ARR)?
- A grocery store is considering the purchase of a new refrigeration unit with an Initial Investment of $412,000, and the store expects a return of $100,000 in year one, $72000 in years two and three, $65,000 in years four and five, and $38,000 in year six and beyond, what is the payback period?Bouvier Restaurant is considering an investment in a grill that costs $140,000, and will produce annual net cash flows of $21,950 for 8 years. The required rate of return is 6%. Compute the net present value of this investment to determine whether Bouvier should invest in the grill.A restaurant is considering the purchase of new tables and chairs for their dining room with an initial investment cost of $515,000, and the restaurant expects an annual net cash flow of $103,000 per year. What is the payback period?