oduction facilities for 225,000 BGs per year will require a $24.4 million immediate capital expenditure. Production costs stimated at $80 per BG. The BG marketing manager is confident that all 225,000 units can be sold for $115 per unit (in rea til the patent runs out five years hence. After that, the marketing manager hasn't a clue about what the selling price will b e real cost of capital is 13%. To keep things simple, also make the following assumptions: The technology for making BGs will not change. Capital and production costs will stay the same in real terms. Competitors know the technology and can enter as soon as the patent expires, that is, they can construct new plants in y start selling BGs in year 6. If your company invests immediately, full production begins after 12 months, that is, in year 1. (Assume it takes all firms on achieve full production.) There are no taxes. BG production facilities last 12 years. They have no salvage value at the end of their useful life. hat is the NPV of the BG project? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 aces.)

Jamaica Corp. is adding a new assembly line at a cost of $6 million. The firm expects the project to generate cash flows of $1 million, $1 million, $3 million, and $4 million over the next four years. Its cost of capital is 16 percent. What is the MIRR on this project, and should the company add the new assembly line? 18.25 percent, no O 18.25 percent, yes O 21 percent, no O 21 percent, yes none of these G13

Kolby’s Korndogs is looking at a new sausage system with an installed cost of $725,000. This cost will be depreciated straight-line to zero over the project’s 7-year life, at the end of which the sausage system can be scrapped for $99,000. The sausage system will save the firm $211,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $63,000. If the tax rate is 24 percent and the discount rate is 10 percent, what is the NPV of this project? Please answer fast i give you uipvote.

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Atech Industries has initial resources of 150 million USD. Optimal operation requires an investment of 200 million USD. The firm must raise 50 million USD additional capital borrowing from the markets. Management projects 200 million USD investment (Optimal time 1 investment required) will generate 330 million USD cash flow at time 2. Market interest rate is 8%. Assume no dividend is paid at time 1. What is the closest present value of the Atech Industries in millions USD with this project at time 1 with the investment taking place in full?A -256 B-330 -276 -50 -300

Most you can pay negative NPV? 22. You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $5.4 million up front and is expected to generate $1.1 million per year for 10 years and then have some shutdown costs in year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 15% on this project. Cald in South Africa

Universal Exports Inc. is a small company and is considering a project that will require $650,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 25%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $155,000?   10.73%   17.88%   18.77%   12.52%     Determine what the project’s ROE will be if its EBIT is –$50,000. When calculating the tax effects, assume that Universal Exports Inc. as a whole will have a large, positive income this year.   -4.64%   -6.67%   -5.22%   -5.8%     Universal Exports Inc. is also considering financing the project with 50% equity and 50% debt. The interest rate on the company’s debt will be 12%. What will be the project’s ROE if it produces an EBIT of $155,000?   28.11%   18.74%   26.77%   21.42%     What will be the project’s ROE if it produces an EBIT of –$50,000 and it…