Find out the value to the firm and wacc , Basic Statistics

1. HV Inc. is trying to determine the optimal time to undertake a product expansion. The project will require an initial investment of $15M and the firm has a WACC of 3%. The expansion is estimated to last 8 years, and if it is undertaken today, the annual cash flows associated with it will be $2.25M. Due to anticipated product adoption throughout the industry, it is estimated that the annual cash inflows will increase by 2% annually. What is the optimal time to undertake the product expansion and what is its value to the firm? 

2. PAC Corp. is going to purchase a new line of technology. It will cost $4M and will be salvaged for $0.5M in six years. Due to the advanced nature of the technology, it can be classified in one of two CCA categories, which have a CCA rate of 20% and 40%, respectively. Which CCA rate should you choose and what is the net benefit to the firm? Assume that PAC Corp. has a marginal tax rate of 35% and a WACC of 6%.

 

 

Posted Date: 3/1/2013 12:07:57 AM | Location : United States







Related Discussions:- Find out the value to the firm and wacc , Assignment Help, Ask Question on Find out the value to the firm and wacc , Get Answer, Expert's Help, Find out the value to the firm and wacc Discussions

Write discussion on Find out the value to the firm and wacc
Your posts are moderated
Related Questions
How do I find the mean when the question is in a table format?2 rows with 8 columns, Do I name them X and Y then do them?


what are the uses of time series

Mention the characteristics of Statistics. Explain any two applications of Statistics.

A football coach recorded in the practice sessions how many attempts were needed for a certain player to kick a field goal from the 25-yard line, and got the following numbers 3

Choose a topic that interests you that you can explore either with the 2006 GSS. You should have one primary "dependent" variable that you are interested in (Y). This variable shou

Textbook The basic practice of statistics, 5th Edition by David S. Moore; Freeman EX:14.37, 14.38, 14.39, 17.5, 17.28a

Continuous probability distributions: Procurement and working capital analysis – Normally distributed random variables and their transformation Procedures The data is measure

What is significance of Responsiblity accounting in divisional performance statement measurement?

1. Comment on influence of study design, sampling strategy and scale of measurement of outcome variable, on your choice of analytical approach Study design: the study design i