The initial investment for a geothermal power plant is $60,000,000 and is to be paid in two years (year 0 and year 1) equally. The electricity generated by the plant is expected to bring revenue of 10,000,000 per year increasing at a rate of 3% annually. The total annual expenses of the plant will be 1,500,000 increasing at a rate 4% annually. The company that owns the plant plans to borrow 50% of the capital expenditure at a rate 6%. The discount rate for this company is 12% and its taxation rate is 35%. A 10 year depreciation period is allowed for this power plant. The plant is expected to generate electricity for 30 years after which it will have zero value. What is the present value of this investment? Should the company undertake the investment?

The common stock of XYZ paid $1.32 in dividends last year. Dividends are expected to grow at an 8% annual rate for an indefinite number of years. If the require rate of return is 10.5%, should you make this investment? Why?

Globo-Chem Co. is expected to generate a free cash flow (FCF) of $1,065.00 million this year (FCF, = $1,065.00 million), and the FCF is expected to grow at a rate of 26.20% over the following two years (FCF, and FCF,). After the third year, however, the FCF is expected to grow at a constant rate of 4.26% per year, which will last forever (FCF.). Assume the firm has no nonoperating assets. If Globo-Chem Co.s weighted average cost of capital (WACC) is 12.78%, what is the current total firm value of Globo-Chem Co.? (Note: Round all intermediate calculations to two decimal places.) O $21,183,44 million O $3,183.42 million $17,652.87 million $23,939.64 million Globo-Chem Co.s debt has a market value of $13,240 million, and Globo-Chem Co. has no preferred stock, If Globo-Chem Co. has 600 million shares of common stock outstanding, what is Globo-Chem Co.s estimated intrinsic value per share of common stock? (Note: Round all intermediate calculations to two decimal places.) $8.09 O $6.35 O…

3. Jennifer Creek is saving up for a new car. She wants to finance no more than $10,000 of the $26,000 estimated price in two years. She deposits $4000 into a savings account now and will make monthly deposits for the next two years. If the savings account pays a nominal interest rate of 5% per year with monthly compounding, how much must she deposit each month?