What will be the amount of garth optimal capital budget

Assignment Help Finance Basics
Reference no: EM13305073

Garth Industries is evaluating the following portfolio of projects for possible inclusion in its current capital budget, ranked by NPV. The company's capital structure calls for 60% debt and 40% equity. Garth expects to have net income of $12,250,000.

Project A: NPV = $5,240,000, capital investment = $10,000,000
Project B: NPV = $2,111,750, capital investment = $10,000,000
Project C: NPV = $908,750, capital investment = $5,000,000
Project D: NPV =$467,000, capital investment = $2,000,000
Project E: NPV = $51,000, capital investment = $500,000
Project F: NPV = ($21,000), capital investment = $800,000
Project G: NPV = ($200,000), capital investment = $1,500,000


a) What will be the amount of Garth's optimal capital budget?

 

Reference no: EM13305073

Questions Cloud

Determine the distance x and the magnitude and direction : the three forces of magnitude P can be replaced by a single, equivalent force R acting at point A. Determine the distance x and the magnitude and direction of R
What must be the area of a suction cup : What must be the area of a suction cup that is completely evacuated and a ceiling if the cup is to support a child who weighs 30 kg
Prove that the forces are equal and that the lines of action : this cuts it down to a single force that you have to solve for, regardless of what type of member it is. Prove that the forces are equal and that the lines of action are along an angle theta. HINT: Use to do equations of equilibrium.
What is the average density of the balloon with gas : A balloon is released from a tall building. The total mass of the balloon including the enclosed gas is 1.5kg. Its volume is 2.5m^3. What is the average density of the balloon with gas
What will be the amount of garth optimal capital budget : Garth Industries is evaluating the following portfolio of projects for possible inclusion in its current capital budget, ranked by NPV. The company's capital structure calls for 60% debt and 40% equity. Garth expects to have net income of $12,250,..
Calculate the runout length with an allowable stress : An 80-mil (2 mm) HDPE geomembrane with an allowable stress of 1,300 lb/in2 rests on a 3(H):1(V) side slope. A 18-inch thick cover soil with a unit weight of 110 lb/in3 (also unit weight of the back fill soil in the anchor trench) is placed of the ..
What is the maximum mass of gold : You have made a raft to transport your fortune in gold across the lake. What is the maximum mass of gold you can carry without sinking the raft
Design a needle-punched nonwoven geotextile for use : The thickness of geonet is 0.2 inch (5 mm). Assume the maximum inflow rate is 0.14 inch/hour. The liquid head over the geomembrane liner is 2 inches. The index properties of the soil placed over the geotextile are as follows
What is the period of the voltage source : The current in a resistor is given by I = (5.14) sin (70 pi t) when a voltage given by V = (180V) sin (70 pi t) is applied to it. What is the period of the voltage source

Reviews

Write a Review

Finance Basics Questions & Answers

  How are treasury bonds bought

What are some of the factors you should consider when buying a bond?

  Finance based decision making question

PH Toy Corporation is unsure of whether to sell its product assembled or unassembled. The unit cost of the unassembled product is $30 and PH Toy would sell it for $65

  What is the conversion ratio of the debenture

The market price of the convertible is 91% of face value, and the price of common is $41.50. Assume the value of the bond in the absence of a conversion feature is about 65% of face value.

  Who will receive the dividend

Mary sells the share to Tom on October 20th, Tom sells the share to William on October 30th. Who will receive the dividend?

  Analyzing methods of businesses which manage working capital

Analyze methods in which businesses manage working capital. Find out the single greatest challenge to small businesses and how those challenges may be addressed.

  Computation of variance and standard deviation

Computation of Variance and standard deviation of a portfolio and what is the expected return of the portfolio

  Capm strengths and weaknesses

What assumptions are significant when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application?

  Find what is duponts optimal capital budget

Find what is DuPont's optimal capital budget - The management of DuPont is planning next year's capital budget

  What will happen to the bond price and to its ytm

The rate of return you would get if you bought a bond and held it to its maturity date is called the bond's yield to maturity. If interest rates in the economy rise after a bond has been issued.

  Determine maximum loss risk

John has just begun investing, & one of his friends was mentioning how he could use short selling as an effective method to drive up his returns when market started to go down.

  Should the new issue be undertaken based

If the 1,500,000 additional shares can only be issued at $28 per share and the company can earn 10 percent on the proceeds, should the new issue be undertaken based on earnings per share?

  Computation of the effective interest rate on the loan

Computation of the effective interest rate on the loan payable in due and in advance and calculate Interest is deducted in advance

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