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
2.5. Västerås Corporation plans to buy a truck for $40,000 and depreciate it fully over 5 years using straight-line method of depreciation. However, it plans to use it for 8 years

Do you have Textbook solutions for Financial Management Core Concepts Author: Raymond M. Brooks. ISBN 978-0-13-267103-3.

What are compensating balances and why do banks require them from some customers?  Under what circumstances would banks be most likely to impose compensating balances? Compensati

The annual report and accounts for Astra Zeneca plc and Epistem Holdings plc and other relevant financial information are available in the ‘TMA 02 Resources folder' in the Assessme

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

Before tax cost of debt and after tax cost of debt; Personal finance problem. David Abbot is interested in purchasing a bond issued by Sony. He has obtained the following inform

Step by step approach to completing a statement of cash flows Step by step approach to completing a statement of cash flows Step 1

BASRIL PLC (a) (i) Analysis of projects assume they are divisible. Project 2 NPV at 12% = (140800 × 3·605) - 450000 = $57584 Project 2 profitability index = 5

Emerging market bonds are the bonds offered by less developed countries. The government normally issues them. These exclude borrowings from gove

You plan to borrow $125,000 at a 9.5% annual interest rate. The terms require you to amortize the loan with 10 equal end-of-year payments. How much interest would you be paying i