Considering adding new type of wind tamer to its trailers

Assignment Help Financial Management
Reference no: EM13911588

Old Dominion is considering adding a new type of wind tamer to its trailers, which will save the company in fuel costs each year and the required rate of return is 9%. The expected life of the units are 5 years and the expected cash flows for each unit are as follows: -$15,000, $3,000, $3,500, $6,000, $8000, $-1,000 Calculate the project's NPV, IRR, MIRR and Payback.

Reference no: EM13911588

Questions Cloud

Find probability that time between one and two minutes : Find the probability that the time between arrivals is Between one and two minutes, Between 1/2 and 31/2 minutes and Less than one minute.
Cost information on its new prospective project : The Highlight Company has the following cost information on its new prospective project. Calculate the accounting break-even point.
Find amplitude of secondary field of subsurface conductor : During a phase -measuring EM survey, the resultant EM field was observed to have an amplitude 78% of that of the primary field and lagged behind it with an angular phase difference of 22 degrees. Determine the amplitude of the secondary field of t..
Provided a return of a percent it was financed by dip cost : In March 2010 hertz pain relievers buy a massage machine that provided a return of a percent it was financed by dip cost 7% in August 2010 Mr. hurts came up with a heating compound would have a return of 14% the chief financial officer Mr. Smith told..
Considering adding new type of wind tamer to its trailers : Old Dominion is considering adding a new type of wind tamer to its trailers, which will save the company in fuel costs each year and the required rate of return is 9%. The expected life of the units are 5 years and the expected cash flows for each un..
What is the conversion ratio : A company just sold a convertible bond at a par value of $1,000. If the conversion price is $47, what is the conversion ratio?
What is the effective annual rate on loan : You have a car loan with a nominal rate of 7.75 percent. With interest charged monthly, what is the effective annual rate (EAR) on this loan?
Calculate the value of a right if the stock is selling right : Armand Goldman owns 60 shares of East Asia Shipping Company stock and has $750 in cash for investment. The company has offered a rights issue in which purchasing a new stock would require four rights plus $50 in cash. Calculate the value of a right i..
Write the formula for the exponential probability curve of x : Write the formula for the exponential probability curve of x. Assuming that the maintenance department's claim is true, find the probability that the time between successive breakdowns is at most five hours.

Reviews

Write a Review

Financial Management Questions & Answers

  Why mrs qe might prefer one trial court over the other

Mrs. QE has decided to contest a $28,650 tax deficiency. She understands that she can initiate the litigation in district court or the Tax Court. Identify any reasons why she might prefer one trial court over the other.

  What are some examples of restrictive covenants that might

If a convertible bond has a conversion ratio of 20, a face value of $1,000, a coupon rate of 8 percent, and the market price for the company’s stock is $15 per share, what is the convertible bond’s conversion value?

  Compare the hedging alternatives for the myr

Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged. Do you think Yankee should hedge or remain unhedged? If Yankee should hedge, which hedge is most appropriate?

  Schedule the intangible section of lewiss balance sheet

Prepare a schedule the intangible section of Lewiss balance sheet at December 31, 2011. Show supporting computations in good form.

  Firm is under-valued or over-valued

A manager believes his firm will earn a 12 percent return next year. His firm has a beta of 1.2, the expected return on the market is 8 percent, and the risk-free rate is 3 percent. Compute the return the firm should earn given its level of risk and ..

  What is the price of the bond which pays annual interest

A 5-year bond which pays 8 percent interest semiannually sells at par ($1,000). Another 5-year bond of equal risk pays 8 percent interest annually. Both bonds are non-callable and have a face value of $1,000. What is the price of the bond which pays ..

  What is implied value of each warrant

Curran Contracting is issuing new 25-year bonds that have warrants attached. If not for the attached warrants, the bonds would carry an 11% annual interest rate. However, with the warrants attached the bonds will pay an 8% annual coupon. There are 30..

  What should the price per share be

Preferred stock has a dividend of $12 a year. The required return is 6%. what should the price per share be?

  Dollar gain and loss relative to the price of the bond

Three years ago, you invested in a zero coupon bond with a face value of $1,000 that had a YTM of 11.5% and 14 years left until maturity. Today, that bond has a YTM of 6.5%. Due to a financial emergency, you are forced to sell the bond. What is your ..

  The current cash flows as a dividend to its shareholders

The firm you are CEO if has a current period cash flow of 1.75 million and pays no dividend. The present value of the company’s future cash flows is $25.0 million. Suppose you and the board announce a plan to pay out 40 percent of the current cash fl..

  Express total interest as percent of the principal borrowed

Consider a loan for $8000 for a period of 3 years at 7% interest with payments made annually. Build the amortization schedule for this loan. How much total interest is paid on this loan? Express the total interest as a percent of the principal borrow..

  Consider a firm with a contract to sell an asset

Consider a firm with a contract to sell an asset for $165,000 four years from now. The asset costs $94,000 to produce today. Given a relevant discount rate on this asset of 13 percent per year, will the firm make a profit on this asset?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd