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
applicability in vegetable growing

What are retained earnings?  Why are they important? Retained earnings represent the total of all the earnings available to common stockholders of a business during its complet

Explain the following term: Perpetual bonds, Floating rate bonds, Index-linked bonds and Callable bonds. Perpetual bonds (also termed as consols) are never mature. This

What are sources of funds for an assignment?

Describe the difference between a parallel loan and a back-to-back loan. Answer:  A parallel loan contains four parties.  One MNC (multinational company) borrows and re-lends to

What are financial markets? Why do they exist? Ans: Financial markets are in which financial securities are bought and sold.  They be present primarily to bring deficit economi

a) Year 2 ROCE = $400k / $1,000k = 40% Year 1 ROCE = $360k / $800k = 45% b) ROCE is an efficiency ratio that measures the monetary performance of a firm compared with the amo

Q. Relative costs and benefits? Option 1- Factoring Reduction in receivables days = 15 days Reduction in receivables =15/365* £20m = £821916 Option 2 - The

Explain about opportunity cost of capital Risk free rate compensates for opportunity lost and risk premium compensates for risk. It can also be known as the 'opportunity cost o

RWE Enterprises is a small manufacturer in Adelaide South Australia, feed suppliments for cattle. New production line NPV, Payback period and discounted payback period