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!
You have been asked by the President of your company to evaluate the proposed acquisition of a new spectrometer for the firm's R&D department. The equipment's basic price is $70,000, and it would cost another $10,750 to modify it for special use by your firm. The spectrometer, which falls into the MARCS 3-year class, would be sold after 3 years for $30,000. Use of the equipment would require an increase in net working capital (spare parts inventory) of $4,000. The spectrometer would have no effect on revenues, but it is expected to save the firm $25,000 per year in before-tax operating costs, mainly labor. The firm's marginal federal-plus-state tax rate is 40%.
a. What is the net cost of the spectrometer (i.e., the Year-0 Net Cash Flow)b. What are the net operating cash flows in Years 1, 2 and 3?c. What is the additional (non-operating) cash flow in Year 3?d. If the project's cost of capital is 10%, should the spectrometer be purchased?
What is the effective rate of interest if the loan is for 1 year and is paid off in one payment at the end of the year? What is the effective rate of interest if the loan is for 1 month?
Clarey sold a parcel of land to Hermes Corporation for $400,000 under an installment note contract. Hermes made a $100,000 down payment on April 1, 2007 and signed a 5 year 12 percent note for the $300,000 balance.
Why is the yield on bonds A and B 5%? Why is the yield on bond C different and what would be the price of Bond A
Based on the value driver assumptions provided, create pro-forma income statement (Cells Rows 25 - 39) and balance sheet (Rows 40 -57) for years 2xx1 through 2xx5. Assume cash and revolving credit as plugs.Calculate cash flow provided by operating a..
Discuss factors used to classify retail establishments and list the types within each classification.
If upon retirement in twenty years he plans to invest= $800,000 in fund which earns 4%, determine max annual withdrawal he can make over following fifteen years?
Computation of value of the bond and What is the total interest expense recorded on these bonds over the fifteen years if the market rate of interest
Compute the amount yearly loan repayment - Find the amount of Harry's annual payment.
Consider your payoff diagram with all three options graphed together. Intuitively, why should the option premium increase with the strike price?
Calculate the equal annual deposits that you must make for the next 25 years( with the first deposit occurring one year from today) to achieve your desired retirement flow.
Describe how and why it differs from the average (mean) period-by-period return to the fund over the 2010-2012 period - evaluate both the arithmetic and geometric average annual total returns for the 2010-12 period?
Compute a more correct estimate of portfolio risk
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