Login

Create Account
+14156709189
info@expertsmind.com
Submit Homework/Assignment
Get quote & make Payment
Get Solution
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 34 years, 45 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 Aftertax 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
Related Discussions:
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..
Related Questions
Chromizing, advantages and disadvantages
advantages and disadvantages
Hybrid ic, HYBRID IC: Hybrid IC's are formed by utilizing various combi...
HYBRID IC: Hybrid IC's are formed by utilizing various combinations of monolithic, thinfilm and thick film techniques and may in certain circumstances contain discrete semicon
Modulus of rupture, description about modulus of rupture machine & differen...
description about modulus of rupture machine & different parts of bending strength machine
optimization, How to decouple complex variable matri
How to decouple complex variable matrix
Engine, #question.what if i poured diesel in petrol engine and petrol in di...
#question.what if i poured diesel in petrol engine and petrol in diesel engine.
Aircraft fuel gauges, Aircraft fuel gauges Fuel gauge senders are capac...
Aircraft fuel gauges Fuel gauge senders are capacitor transducers that consist of concentric tubular electrodes from top to bottom of the tank. They are distributed at various
Numerical analysis, represent the numbers 387 and 25 as floating numbers an...
represent the numbers 387 and 25 as floating numbers and illustrate the calculation of 387+25 using rounding.What is the calculated sum.
INSTRUMENTATION, TRANSDUCERS
TRANSDUCERS
Hemodynamics, Assignment
Assignment
Crystal structure, how can we determine the crystal structure of material b...
how can we determine the crystal structure of material by having interplanar spacing d?
Assignment Help
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
IT Courses and Help
ExpertsMind Services
Online Tutoring
Projects Assistance
Exam Preparation
Coursework Help
Programming Courses
Engineering Courses
Why Us ?
~Experienced Tutors
~24x7 hrs Support
~Plagiarism Free
~Quality of Work
~Time on Delivery
~Privacy of Work