Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project. Guthrie Enterprises needs someone to supply it with 154,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you've decided to bid on the contract. It will cost you $1,940,000 to install the equipment necessary to start production; you'll depreciate this cost straight-line to zero over the project's life. You estimate that in five years this equipment can be salvaged for $164,000. Your fixed production costs will be $279,000 per year, and your variable production costs should be $9.90 per carton. You also need an initial investment in net working capital of $144,000. If your tax rate is 39 percent and you require a 13 percent return on your investment, what bid price per carton should you submit?
Computation of weighted average cost of capital and calculate the weighted average cost of capital for Dell using book value weights and market value weights assuming Dell has a 35% marginal tax rate
Q1) The 12-month, 15-month, 18-month zero rates are 7.4%, 7.5%, 7.6% with continuous compounding. What is the value of an FRA that enables the holder to earn 8.6% (with semiannual compounding) for a 6-month period starting in one year on a principal ..
Pemberton Corporation bought a machine costing $300,000 that had an estimate useful life of 6-years and residual value of $18,000. The machine is expected to produce 3,525,000 units during its useful life;
Select a company which pays dividends, then compute the expected growth rate of your company by using the CAPM.
Davis Corporation must select between a gas-powered and an electric powered fork-lift truck for moving materials in its factory. Since both forklifts perform same function, firmwill select only one.
Use the following spot and forward bid-ask rates for the JPY/USD exchange rate to answer the following questions.
What is the inflation premium (IP) on all 5-year bonds?
What are the advantages & disadvantages of each estate planning strategy? What would likely happen without your plan being implemented?
If the firm's tax rate is 30% what discount rate should you use to evaluate the equipment purchase?
A bank offers two 30 year, fixed rate, fully amortizing LPMs: an 85% LTV loan at 6%, and an 80% LTV loan at 5.5%. What is the marginal cost of borrowing if the loan is going to be held for 10 years?
How much revenue is recognized on the March income statement from this order? How much in the April Income statement?
scribe agency conflict and the measures that can reduce the possibility of such a conflict in a corporation.
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd