### Compute the net present value

Assignment Help Finance Basics
##### Reference no: EM13262068

Worldwide Scientific Equipment is considering a cash acquisition of Medical Labs for \$2.7 million. Medical Labs will provide the following pattern of cash inflows and synergistic benefits for the next 25 years. There is no tax loss carryforward. Use Appendix D.

 Years 1-5 6-15 16-25 Cash inflow (aftertax) \$260,000 \$280,000 \$320,000 Synergistic benefits (aftertax) 31,000 41,000 61,000

The cost of capital for the acquiring firm is 10 percent.

Compute the net present value. (Round "PV Factor" to 3 decimal places. Round your answer to the nearest whole number and not in millions. Negative amount should be indicated by a minus sign. Omit the "tiny_mce_markerquot; sign in your response.)

#### What is the project initial investment

MA514/GA514 Individual Assignment. Nutson Bolz is an assembly business run by a sole proprietor whose marginal tax rate is 47%. What is the project's initial investment? What

#### Valuation principle problems

Valuation Principle Problems: Suppose that Bondi Inc. is a holding company that owns both Pizza Hut and Kentucky Fried Chicken Franchised Restaurants. If the value of Bondi is

#### What is the effective annual rate on your new loan

If you refinance your loan at the government rate, you will amortize the amount you still owe under the original mortgage over 30 years, and your payment will be \$750 per mo

It is 2006 and you notice that there are a lot of television programs about people that "flip" houses. That is, programs in which people buy houses, remodel them, and hope t

#### Calculate and label the market risk premium on the axes

Assume that the risk-free rate, RF, is currently 9% and that the market return, rm, is currently 13%. Draw the security market line (SML) on a set of "nondiversifiable risk (x

#### The beta of your portfolio

Portfolio Beta You own \$1,800 of City Steel stock that has a beta of 1.66. You also own \$6,600 of Rent-N-Co (beta = 1.96) and \$5,600 of Lincoln Corporation (beta = 1.06). Wh

#### Conditions of the binomial distribution apply

The exploration leader plans to take 15 batteries. Assuming that the conditions of the binomial distribution apply, the probability that the supply of batteries will contain

#### What is the price of the security

Perpetuities A prestigious investment bank designed a new security that pays a quarterly dividend of \$3 in perpetuity. The first dividend occurs one quarter from today. What