Calculate npv-irr - mirr - payback and discounted payback, Financial Management

Calculate NPV-IRR - MIRR - payback and discounted payback:

1-      Define and explain as well as you can of the following:

a-      Goals and objectives of the Corporate Firm and Xenophon's new science.

b-      Beta Coefficient.

c-       Yield to Maturity.

d-      Compounding Frequencies and Effective Annual rate.

e-      Ordinary Annuity and Annuity Due.

f-       Internal Rate of return and Modified IRR.

g-      Present value of a differential growth (g1 and g2) Stock.

2-      You are planning for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 in a bond account. The return of the stock account is expected to be 10% and the bond account will pay 6%. When you retire, you will combine your money into an account with an 8% return. How much can you withdraw each month from your account assuming a 25 year withdraw period?

 

3-      A) Find the present values and the future values of the following cash flows streams at 8% compounded annually

5

4

3

2

1

0


 $ 300.00

 $ 400.00

 $ 400.00

 $ 400.00

 $ 100.00

 $         -  

Stream A

 $ 100.00

 $ 400.00

 $ 400.00

 $ 400.00

 $ 300.00

 $         -  

Stream B

 

                B) What are the PVs and the FVs of the streams t 0% compounded annually?

4- Warren Corporation will pay $3.60 per share dividend next year. The company pledges to increase its dividends by 4.5% per year indefinitely. If you require a 13% return on your investment, how much will you pay for the company's stock today?

4- A firm with 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation are as follows:

5

4

3

2

1

0


 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $  (6,000.00)

Project A

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $(18,000.00)

Project B

a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project.

b. Assuming the projects are independents, which one(s) would you recommend?

c. If the projects are mutually exclusive, which would you recommend?

d.  Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?

Posted Date: 2/12/2013 1:47:30 AM | Location : United States







Related Discussions:- Calculate npv-irr - mirr - payback and discounted payback, Assignment Help, Ask Question on Calculate npv-irr - mirr - payback and discounted payback, Get Answer, Expert's Help, Calculate npv-irr - mirr - payback and discounted payback Discussions

Write discussion on Calculate npv-irr - mirr - payback and discounted payback
Your posts are moderated
Related Questions
Pros and Cons Simulation technique allows experimentation with a model of the real life system. Whenever experimenting with the system itself is risky and/or costly, simulation

Explain the adjustments necessary to translate enterprise value to the total present value of common equity. To acquire the value of the company’s common stock, add the value of

Repurchase agreement is a contract wherein the seller of a security agrees to buy back the same security from the purchaser at a specified price and time. It is also


Q. Show the Transaction risk? This is the risk occur on short-term foreign currency transactions that the actual income or cost may be different from the income or cost expecte

Q. Explain about Loans - Forms of Bank Finance? When a bank makes an advance in lump-sum against some security it is called a loan. In Case of a loan, a specified amount is san

Suggestion regarding credit limit. should it be approved or not, what should be the amount of credit limit that electronics give to booth plastics

Q. Explain what is Comprehensive Income? Comprehensive Income - Change in EQUITY of a business enterprise during a period from transactions and other circumstances and events f

What is the primary advantage to a corporation of investing some of its funds in working capital?  By investing in working capital a firm acquires the liquidity it needs helpin

You are an investment banker advising a Eurobank with reference to a new international bond offering it is considering.  The carries on are to be employed to fund Eurodollar loans