Discounted cash flow project analysis

Assignment Help Financial Management

Reference no: EM131935551

1. A 5-year discounted cash flow project analysis for building a smoothie factory should take into account which of the following:

a. Cost of driveway repair leading to and from the factory

b. A planned sell-off of the factory to a competitor

c. The cost of blueberry supply each year for making blueberry ice cream

d. Supply smoothies are expected to increase demand for smoothie cones we already produce

e. According to our CFO, year 4 features a high opportunity cost where we could have made glue

Why?

2. P/E:

a. Is more important for valuing companies in distress than healthy companies.

b. Is better than P/B when earnings are volatile.

c. Should not be used for defensive stocks because of inelastic demand.

d. Is calculated by Price-per-share divided by EPS.

e. Could be used in the Profile Strategy.

Reference no: EM131935551

Questions Cloud

Project cash flow from net working capital at time zero : What is the project’s cash flow from net working capital at time zero?

What is cash cycle : Your firm’s accounts receivable period is 35 days. operating cycle is 62 days and accounts payable turnover is 7.3 times. What is your cash cycle.

Calculate the portfolio standard deviation : Calculate the portfolio standard deviation.

The present value of a perpetual tax shield increases : The present value of a perpetual tax shield increases as the firm’s tax rate _____ and the amount of principal _____

Discounted cash flow project analysis : A 5-year discounted cash flow project analysis for building a smoothie factory should take into account which of the following:

Financially benefit due to high frequency trading : Which of the following financially benefit due to High Frequency Trading? WHY?

Calculate the earnings per share and price-earnings ratio : Calculate the earnings per share and price-earnings ratio for Exxon Mobil and ConocoPhillips.

Calculate the wacc for the company-using cost of debt : Calculate the WACC for the company, using cost of debt = (interest expense)/(total debt)

Used in the foreign country using the foreign currency : What discount rate should be used in the foreign country using the foreign currency?

User Account

All Pages