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Based on the inputs below prepare a capital budget analysis for this Base Case using the Net Present Value, Internal Rate of Return and Profitability Index determining whether the project is feasible. Please show your spreadsheet calculations and your final determinations of “go” or “no go” on the project.Project Inputs:WACC – the cost of capital (hurdle rate) will be the current yield of the 10 Year U.S. Treasury Note: as of Friday July 18 2014 the yield was 2.54%, plus 630 basis points.Project Investment Outlay, Year 0 - $500,000 Project Investment Life – 10 yearsProject Depreciation - $50,000 / yearProject Salvage Value - $20,000Working Capital Base of Annual Sales – 10%Expected inflation rate per year, Selling Price Per Unit – 5%Expected inflation rate per year, Manufacturing Cost per unit – 3.5% Expected inflation rate per year, Fixed operating costs per year – 2.5% Project Tax Rate – 30%??Bus 530 Case 3: HasseInputs continued:Units sold per year – 20,000Selling Price per Unit, Year 1 - $75Fixed operating costs per year excluding depreciation - $250,000 Manufacturing costs per unit, Year 1 - $33.75Scenario Analysis:Base Case Scenario – 20,000 units sold per year – 57% probability Worst Case Scenario – 10,000 units sold per year – 25% probability Best Case Scenario – 30,000 units solder per year – 18% probabilityPrepare a scenario analysis once you have completed your original discounted cash flow analysis. Is the project still a “go” or “no go”?Sensitivity Analysis:In addition to the above, also prepare a sensitivity analysis based on the following variables –Deviation from the Base: -20%, -10%, 0%, +10%, +20%Sensitivity Variables: (1). Selling Price per Unit, (2). Manufacturing Cost per Unit, (3). Depreciation.Please show the range in the NPVs for each variable and chart the analysis. Which variable has the highest risk and which variable has the lowest risk? Explain.
Determine Net Working Capital and explain how is this related to the cash conversion cycle describe what each component of the cash conversion cycle means
the group of companies we choose googlenbspdetails of assignment you are required to form a team group of 3 to 4 m
How much will be in the account immediately after you make the last withdrawal? Round your answer to the nearest cent.
which is also expected return on new investment. Its earnings are expected to grow forever at a rate of 5.5% per year. If its next dividend is due in one year, what do you estimate the firms current stock price to be?
The project's NPV is $75,000 and the company's WACC is 10%. What is the project's regular payback?
Discuss the use of disability insurance in financial planning, including the tax ramifications; OR Discuss the income and estate tax treatment of life insurance proceeds, giving an example.
A couple wants to buy furniture costing $2800. The store offers credit with an APR of 16% with a maximum term of four years. 1) What is the amount of their monthly payment if they borrows for 4 years?
Computation of Price of the bonds and What is an estimate of the price of the annual coupon bond
The project's cost and expected annual cash flows would be the same whether the project is delayed or not. The project's WACC is 11.0%. What is the value (in thousands) of the option to delay the project?
An investor has two bonds in his or her portfolio, Bond C and Z. Each matures in four years, has a face value of $1,000, and has a yield to maturity of 9.6%.
A corporate bond with a 7.100 percent coupon has eleven years left to maturity. It has had a credit rating of BB and a yield to maturity of 8.9 percent. The firm has recently become more financially stable and the rating agency is upgrading the bo..
Exchange rate relationships between the U.S. dollars the euro have been quite volatile. When the euro began trading at the beginning of 1999.
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