Customer Service Chat
Get quote & make Payment
Homework, Other Engineering
1) An investment project requires a net investment of $100,000. The project is expected to generate annual net cash flows of $28,000 for the next 5 years. The firm''''s cost of capital is 12%. Part 1 - Determine the payback period for the project. Part 2 – Determine the payback period accounting for the present value of future cash flow (ie. Present value calculations). Should the project be done? After considering present value is the 100,000 investment recovered in 3-4 years, 4-5 years or over 5 years?
2) What is the IRR for a project that has a net investment of $14,600 and a single net cash flow of $25,750 in 5 years?
3) Red Lake Mines, Inc. is considering adoption of a new project requiring a net investment of $10 million. The project is expected to generate 5 years of net cash inflows of $5 million per year. In the project''''s sixth, and final, year it is expected to have a net cash outflow of $1 million. What is the project NPV, using a discount rate of 12%?
4) Zimmer, a manufacturer of modular rooms, plans to expand its operations in Landshut, Germany. The expansion will cost $14.5 million and is expected to generate annual net cash flows of €2.15 million for a period of 12 years and then the operation will be sold for €1 million (net of taxes). The cost of capital for the project is 14%. Using a spot exchange rate of $1.25/€ as the forecast FX rate for the euro for the term of the project, compute the NPV of this expansion project.
5) Dupree Funds is considering the fees charged by two banks. First America charges a flat rate of $0.11 per payment and First Western requires a deposit of $500,000 (that does not pay interest to Dupree), plus $.05 per payment. What is the number of payments per year where the costs of the two banks will be equal? Assume Dupree''''s cost of funds is 9%.
6) What is the annual tax shield to a firm that has total assets of $80 million and a net worth of $55 million, if the average interest rate on debt is 8.5% and the marginal tax rate is 35%?
7) Jason is interested in finding the breakeven point for a new pump it plans to produce. The price of the pump is $250 and the variable cost ratio is 50% of the price. Jason calculated that the fixed costs will be about $400,000. What is the breakeven point of operations?
8) Crown Honda purchased one of its most popular motorcycle models for 965,000 yen. The FX rate for the yen was 142 yen per dollar at the time of purchase, but then rose to 171.8 yen by the time payment was made. What was the dealer’s gain or loss on the change in rates?
9) Seduak has estimated the costs of debt and equity capital for various proportions of debt in its capital structure.
% Debt After-tax cost of debt Cost of equity
0% - 13.0%
10 5.4% 13.3
20 5.4 13.8
30 5.8 14.4
40 6.3 15.2
50 7.0 16.0
60 8.2 17.0
Based on these estimates, determine Seduak’s optimal capital structure
Posted Date: 4/26/2012 10:19:19 PM | Location : United States
Ask an Expert
Homework, Assignment Help, Ask Question on Homework, Get Answer, Expert's Help, Homework Discussions
Write discussion on Homework
Your posts are moderated
Write your message here..
Electronics, square wave generator using op amp
square wave generator using op amp
Principles of jet propulsion, Principles of Jet Propulsion: Newton 's...
Principles of Jet Propulsion: Newton 's Laws of Motion. To understand the basic principles of jet propulsion it is necessary to understand the practical application of Sir I
Vertical shaft rotary kiln method, Explain the process of manufacturing ord...
Explain the process of manufacturing ordinary Portland cement by vertical shaft rotary kiln method and write chemistry of hardening and setting of it with chemical equations. D
Michelson and morley experiment, WHY IT IS NOT POSSIBLE
WHY IT IS NOT POSSIBLE
Banking and finance, identify the role of the regulators and problems assoc...
identify the role of the regulators and problems associated with regulation
Validation, a web application using any technology that accepts an email ad...
a web application using any technology that accepts an email address and checks if the domain of the email address exists.
Flow at low mach number and zero incidence about m6 wing, Flow at low Mach ...
Flow at low Mach number and zero incidence about M6 wing Results from FP were obtained corresponding to M ∞ = 0.2 and a = 0 and, as noted, with the input files generated by FP
Extended input facilities, Extended input facilities Another instance w...
Extended input facilities Another instance where multiple inputs to a single gate operation can occur is with certain types of gate elements that have an 'EXTENDED INPUT' facil
Fire precautions - fire protection engineering, Fire precautions - fire pro...
Fire precautions - fire protection engineering: Fire precautions include: Protecting escape routes in fire resisting construction, Providing fire doors between
Mine ventilation assignment, Describe the method of undertaking an anemomet...
Describe the method of undertaking an anemometer traverse for a airflow
Accounting Assignment Help
Economics Assignment Help
Finance Assignment Help
Statistics Assignment Help
Physics Assignment Help
Chemistry Assignment Help
Math Assignment Help
Biology Assignment Help
English Assignment Help
Management Assignment Help
Engineering Assignment Help
Programming Assignment Help
Computer Science Assignment Help
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Terms & Conditions
Copyright by ExpertsMind IT Educational Pvt. Ltd.