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
Pension Reforms On January 1, 2004, Pension Funds have come into force in India. Government servants will have to subscribe to them. The new pension fund system is primarily dr

What is Settlement date? Please provide me report on Settlement date. It is about 2000 words count report on topic Settlement date.

Strategies of Hedge Funds: Hedge funds use a range of different strategies, and each fund manager can argue that he or she is unique and could not be compared to other manager

Do you believe an increased common stock cash dividend can send a signal to the common stockholders?  If so, what signal might it send? An enhance in cash dividends is often se

The difference between the cost of attending a particular school and the expected family contribution, minus any other financial aid.

What are the main elements of capital budgeting decisions There are three elements of capital budgeting decisions (i) long-term assets and their composition (ii) business

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

Explain Speculator - Market Participants A speculator attempts to profit from a modification in the futures price. For doing this, the speculator will take a long or short posi

How do opportunity costs affect the capital budgeting decision-making process? Opportunity costs reflect the foregone advantages of the alternative not chosen when a capital bu

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate