User Account

All Pages

Firm operating out of valdez

Assignment Help Finance Basics
Reference no: EM131114096

Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering. The project has a cost of $275,000 and is expected to provide after-tax annual cash flows of $73,306 for eight years. The firm's management is uncomfortable with the internal rate of return (IRR) reinvestment assumption and prefers the modified IRR approach. You have calculated a cost of capital for the firm of 12 percent. What is the project's modified internal rate of return (MIRR)? Given that the cost of capital is 12 percent, should the project be accepted? Why?

Reference no: EM131114096

Questions Cloud

Compute cost of goods sold assuming periodic inventory : Compute cost of goods sold assuming periodic inventory procedures and inventory priced at FIFO.
Calculate the price of the bond : A bond with $1,000 maturity value has a coupon rate of 8 percent and a required return of 6 percent. The bond is to mature in 2 years.
What is argument luban offers for the hybrid war-law model : What is the argument Luban offers for the hybrid war-law model? What is the argument he offers against it? Which side of the argument is more compatible with respect for human rights?
Determining the value for jayhawk : Jayhawk wants to select the project that provides the most value over the next four years. What is the net present value (NPV) of the project that creates the most value for Jayhawk?
Firm operating out of valdez : Alyeska Salmon Inc., a large salmon canning firm operating out of Valdez, Alaska, has a new automated production line project it is considering.
How a different culture handles death : Your task is to find information about how a different culture handles/treats death, dying and funerals.
European call option with a strike price : A stock price is 100 now and will be either 108 or 93 in a year. The RFR is 8% per annum with continuous compounding. Using the risk-neutral valuation, find the price of its one year European call option with a strike price of 102.
Identify and describe the sender-caused barriers : Identify and describe the sender-caused barriers, receiver-caused barriers, and other barriers in communications. Who is most responsible, Sender or Receiver
What is the dividend yield : The next dividend payment by ECY, Inc., will be $1.60 per share. The dividends are anticipated to maintain a growth rate of 6 percent, forever. The stock currently sells for $30 per share

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the company net working capital

The company had cash and marketable securities worth $1,235,455, accounts payables worth $4,159,357, inventory of $7,121,599, accounts receivables of $3,488,121, short term notes payable worth $1,151,663 and other current assets of $121,455. What ..

  A portfolio comprises coke beta of 14 and wal-mart beta of

a portfolio comprises coke beta of 1.4 and wal-mart beta of 1.0. the amount invested in coke is 10000 and in wal-mart

  What is the purpose of the income statement

In 600-750 words, respond to the following: Managers within the firm, as well as the firm's owners and lenders, keep track of the firm's performance by reviewing its financial statements - income statement, balance sheet, and statement of cash flows...

  What is the actual rate mr. miser is charging on his loans

Mr. Miser loans money at an annual rate of 16 percent. Interest is compounded daily. What is the actual rate Mr. Miser is charging on his loans?

  Prepare a personal financial plan

Prepare a personal financial plan on the following case based on the mentioned parameters:

  Compute the break-even point in units

Shock Electronics sells portable heaters for $25 each unit, and the variable cost to produce them is $17. Mr. Amps estimates that the fixed expenses are $96,000.

  What is the interest tax shield

Fleury Co. has a 32 percent tax rate. Its total interest payment for the year just ended was $33.2 million.

  By how much does the required return on the riskier stock

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an adverage stock is 15 percent, and the risk-free rate of return is 9 percent.

  Three firms have marginal costs of pollution abatement as

1. disney land discovers that they have two groups of customers with two different demand curves. locals have demand p

  A stock with a current price of 25 will either move up to

a stock with a current price of 25 will either move up to 32 or down to 20 over the next period. the risk-free rate of

  Ratio analysis for government financial condition analysis

1. What general problems must be addressed in doing ratio analysis for government financial condition analysis? 2. Do traditional solvency ratios adequately address financial condition analysis concerns?

  The dividends and earnings per share are projected to have

pathos co.s common stock is currently selling for 23.80. dividends paid last year were 0.70. flotation costs on issuing

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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