Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Compact fluorescent lamps (CFLs) have become required in recent years, but do they make financial sense? Suppose a typical 60-watt incandescent lightbulb costs $.35 and lasts for 1,000 hours. A 15-watt CFL, which provides the same light, costs $2.90 and lasts for 12,000 hours. A kilowatt-hour is 1,000 watts for 1 hour. Suppose you have a residence with a lot of incandescent bulbs that are used on average 500 hours a year. The average bulb will be about halfway through its life, so it will have 500 hours remaining (and you can’t tell which bulbs are older or newer).
If you require a 9 percent return, at what cost per kilowatt-hour does it make sense to replace your incandescent bulbs today? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your answer to 6 decimal places, e.g., 32.161616.)
Break-even cost ______$
Please explain your calculations.
Assume you are the CFO of a larger regional bank and assigned to look at the cash flow projection of a new branch location. What factors would you consider relevant in making a decision? What sort of time frame would you consider? Would you consider ..
A large retailer obtains merchandise under the credit terms of 1/15, net 45, but routinely takes 60 days to pay its bills. (Because the retailer is an important customer, suppliers allow the firm to stretch its credit terms.) What is the retailer's e..
MGM Grand said it plans to eventually buy back up to 20% of its shares (from stockholders) and announced a tender offer for half of them at a 31% premium (over the market price). Provide a rationale for the stock repurchase.
PriceSmart Shops has $50Min assets, $35 in debt, and $10M in common stock. The dividend preferred stock is $1.50 per share and its price is $25 and has a 5% commission. The expected dividend on common stock is $1.00 per share and its price is $20. As..
You can invest in asset 1 with μ1 = 0.1, σ1 = 0.3 and asset 2 with μ2 = 0.2, σ2 = 0.5, with correlation ρ = 0.2. Find the minimum variance point and the portfolio strategy that attains it. Repeat the previous problem if a risk-free asset with return ..
COST OF EQUITY WITH AND WITHOUT FLOTATION Javits & Sons’s common stock currently trades at $30.00 a share. It is expected to pay an annual dividend of $3.00 a share at the end of the year , and the constant growth rate is 5% a year. What is the compa..
Money has a time value associated with it. A dollar received today is worth more than a dollar received in the future. What role does inflation play when determining the value of a dollar? Explain.
Use the following information to answer this question. Windswept, Inc. 2010 Income Statement ($ in millions) Net sales $ 10,050 Less: Cost of goods sold 7,700 Less: Depreciation 395 Earnings before interest and taxes $ 1,955 Less: What is the equity ..
Compare the difference between retail and institutional cash flow to money market funds. How do they differ? Why do you think they differ?
An investor plans to invest 75 percent of her funds in the common stock of GAmma Industries and 25 percent in Epsilon Company. The expected return on GAmma is 12 percent and the expected return on Epsilonis 16 percent. Determine the standard deviatio..
Which tool(s) should we use when faced with nonconventional cash flow? Also, NPV is conceptually the best tool for capital budgeting. Why do you think firms continue to practice the others?
A local bank advertises the following deal: Pay us $100 at the end of each year for 10 years and then we will pay you (or your beneficiaries) $100 at the end of each year forever. Calculate the present value of your payments to the bank if the intere..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd