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!
Q1) United Technologies Inc. (UT) just manufactured manufacturing plant in China. Construction cost 9 billion Chinese Yuan. UT intends to leave plant open for 3 years. In the 3 years of operation, Yuan cash flows are expected to be 3 billion Yuan, 3 billion Yuan, and 2 billion Yuan, respectively. Operating cash flows will start one year from today and are remitted back to parent at end of each year. At the ending of third year, UT expects to sell plant for 5 billion Yuan. UT has required rate of return of 17%. It presently takes 2.75 Yuan to buy one U.S. dollar, and Yuan is expected to reduce by 7% per year.
a) Find out NPV for this project. Must United Technologies build plant?
b) How would your reply change if value of Yuan was expected to stay unchanged from its present value of 2.75 Yuan per U.S. dollar over course of the 3 years? Must United Technologies create plant then? NPV would therefore be ______?
c) Recall that Yuan 5 billion of cash flow in year three represents salvage value. United Technologies is not totally certain that salvage value will be this amount and wants to find out NPV without this amount in capital budgeting exercise. NPV would therefore be $_______?
State pricing theory and no-arbitrage pricing theory
Deduce formula for weights of stocks A also B at which variance of portfolio P is minimal.
By using Modigliani and Miller's proposition H. Find out the required return on unlevered equity.
Develop a financial plan to evaluate the venture and its viability.
How many shares of stock should be sold for company to net= $20 million after costs also expenses
How much will each annual payment be? What ratios would be impacted by extra debt? How would you give explanation for this purchase to management?
Computation of Degree of financial leverage, operating leverage, degree of combined leverage and what equations to use
Compute of invoice price of a bond If the last interest payment was made 2 months ago and the coupon rate is 6%
Computation of contribution margin and break-even point and target operating income and What will be the operating income
Compute current value of futures position based on the rate calculated above plus the 2 points.
Briarcrest Condiments is spice-making firm. Newly, it developed new process for producing spices. Compute the NPV if discount rate is 13.74%?
How much would such approach cost or benefit government in form of increased government tax revenues or increased government costs?
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