Reference no: EM131332336
1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the project is $331,077. The project will produce the following after-tax cash inflows of
Year 1: 173,717
Year 2: 136,109
Year 3: 115,073
Year 4: 186,776
Round the answer to two decimal places in percentage form.
2. What is the yield to call of a 20 year to maturity bond that pays a coupon rate of 14.22 percent per year, has a $1,000 par value and is currently priced at 1,219? The bond can be called back in 10 years at a call price $1,096. Assume annual coupon payments.
Round answer to two decimal places.
3. Find the modified internal rate of return (MIRR) for the following series of future cash flows if the company is able reinvest the cash flows from the project at an annual rate of 8.76%. The initial outlay is $486,000.
Year 1: $193,000
Year 2: $124,600
Year 3: $140,700
Year 4: $199,400
Year 5: $168,000
Round the answers to two decimal points.
|
Reject these projects based on payback analysis
: You are considering two mutually exclusive projects. Project A has cash flows of -$72,000, $21,400, $22,900, and $56,300 for years 0 to 3, respectively. Project B has cash flows of -$81,000, $20,100, $22,200, and $74,800 for years 0 to 3, respectivel..
|
|
Calculate the cost of new common equity financing
: 1. Calculate the cost of new common equity financing of stock R using Gordon Model Round the answers to two decimal places in percentage form (Write the percentage sign in the "units" box)
|
|
Find all the equilibria of the following two player game
: Find all the equilibria of the following two-player game.- What are all the subgames of the two-stage game?- Find all the subgame perfect equilibria of the two-stage game.
|
|
Discuss about the health care and human capital
: Explore whether or not funding from international lending institutions like the World Bank and the IMF are helping or hindering the social, economic, or political development of the country that you have selected. Support your response with exampl..
|
|
Company cost of capital
: 1. Tall Trees, Inc. is using the net present value (NPV) when evaluating projects. You have to find the NPV for the company's project, assuming the company's cost of capital is 9.83 percent. The initial outlay for the project is $331,077. The proj..
|
|
Describe different approaches for inventory management
: Information System Management (COMP1006) - Explain why the endpoint security is not so much successful in business organizations. What should be the option for companies to overcome this issue in order to save their data and information?
|
|
Concept for invention or an update to an existing product
: Based on what we learned, come up with a product and a selling concept for an invention or an update to an existing product. Why should people buy it? Who is your audience (the buyers)? Is the price above or below market? What would be your sales pit..
|
|
Calculate its weighted average cost of capital
: Your firm is considering a new investment proposal and would like to calculate its weighted average cost of capital. To help in this, compute the cost of capital for the firm for the following:
|
|
Find all the subgame perfect equilibria of the game
: Find all the subgame perfect equilibria of this game, assuming that both Hillary and Bill are risk-neutral, i.e., each of them seeks to maximize the expected payoff he or she receives.
|