Customer Service Chat
Get quote & make Payment
Problem Set, 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: 4/30/2012 6:00:42 PM | Location : United States
Ask an Expert
Problem Set, Assignment Help, Ask Question on Problem Set, Get Answer, Expert's Help, Problem Set Discussions
Write discussion on Problem Set
Your posts are moderated
Write your message here..
Semiconductor basics summary, N-type (for example add Antimony) The are...
N-type (for example add Antimony) The are materials which have Pentavalent impurity atoms (Donors) added and conduct by the "electron" movement and are called as N-type Semi
Poultry numericals, design cage type poultry house for 1000 lying birds als...
design cage type poultry house for 1000 lying birds also specify the equipments for feeding,watering,lighting and protecting birds.
project on gas leakage detection, can any one please help with virtual cir...
can any one please help with virtual circuit simulation
Fuel system inhibiting, Fuel system inhibiting. The fuel used in turbi...
Fuel system inhibiting. The fuel used in turbine engines usually contains a small quantity of water which, if left in the system, could cause corrosion. All the fuel should th
Materials, Why Industries that manufacture racing cars prefers nickel based...
Why Industries that manufacture racing cars prefers nickel based alloys for engine components and iron based alloys for structural parts?
Analog digital converter , Analog digital converter Analog digital con...
Analog digital converter Analog digital converter digitises the conditioned signal and presents it in a digital form, which is more convenient for long distance transmission,
Co-ordination number, Q. Define co-ordination number. Ans.CO-ORDINAT...
Q. Define co-ordination number. Ans.CO-ORDINATION NUMBER: The number of atoms which are directly surrounding a given atom is known as coordination number. Number of atoms w
Torque indication - aircraft engine, Torque indication: Turboprop and t...
Torque indication: Turboprop and turboshaft engines do not provide significant thrust through their jet pipes, so EPR would not be of any use in determining the thrust being pr
Dynamics of structures, dynamics
Positive seris clipper, limitation of seris clipper experiment
limitation of seris clipper experiment
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
Why Us ?
~24x7 hrs Support
~Quality of Work
~Time on Delivery
~Privacy of Work
Human Resource Management
Literature Review Writing Help
Follow Us |
T & C
Copyright by ExpertsMind IT Educational Pvt. Ltd.