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!
Details TechMedia, Inc. is a U.S. firm that is planning to build a new production facility in either the USA or China. The initial cost to build the facility will be $10 million if built in the USA or ¥55 million if built in China. In either location, the project will require an initial investment of $200,000 in net working capital. Net working capital at the end of each of years 1 through 4 will be $50,000. Net working capital will be $0 at the end of the fifth (final) year of the project. The current exchange rate between the two currencies is 6.3 ¥/$. The risk-free rate in the U.S. is 0.5% and the risk-free rate in China is 6.5%. TechMedia, Inc. pays a 35% tax rate on its taxable income. The firm’s current and target debt-equity ratio is 0.6. Its cost of debt is 6.15% and its cost of equity is 11%. The facility will be fully depreciated over five years (straight line) with no salvage value. The facility is expected to impact the firm’s operating revenues and expenses as shown below. Which location should TechMedia, Inc. choose? Your analysis should incorporate the following financial management concepts: incremental cash flows, NPV, IRR, and WACC.
Sqeekers Co. issued a 15yrs bonds a year ago at a coupon rate of 4.1 percent. The bonds make semi annual payments and have a par value of $1000. If the YTM on these bonds is 4.5 percent what is the current bond price?
Suppose the current exchange rate between German Mark and US dollar is M 1.5581 per $, and the 90 days forward rate between these currencies is M 1.5493 per $. The current exchange rate between French franc and U.S. Dollar is FF 5.529 per dollar. Las..
Rank in order according to logical and practical framework, these ratios in terms of significance: liquidity, asset management, debt management, profit ability and market value ratios.
Your firm is contemplating the purchase of a new $605,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. If the tax rate is 34 percent, what is the IRR for this project?
Evaluate a project that costs $1.75 million has a 10-year life and no salvage value. Assume depreciation is straight line over the life of the project. Sales are projected at 155K units every year over the life of the project. Calculate: the accounti..
Last year Rennie Industries had sales of $305,000, assets of $175,000, a profit margin of 5.3%, and an equity multiplier of 1.2. The CFO believes that the company could reduce its assets by $51,000 without affecting either sales or costs. Had it redu..
Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$417,000 –$36,000 1 48,000 19,600 2 58,000 14,100 3 75,000 14,600 4 532,000 11,400 The required return on these investments is 13 percent. What is the payback..
A stock is expected to pay a dividend of $1.30 one year from now, $1.70 two years from now, and $2.10 three years from now. The growth rate in dividends after that point is expected to be 8% annually. The required return on the stock is 13%. The esti..
Using the cumulative data from the IPMR below for WBS 1.1.5, calculate a formula-based estimate at completion (EAC) using the performance factor of cost performance index times schedule performance index, or CPI x SPI.
Your Christmas ski vacation was great, but it unfortunately ran a bit over budget. All is not lost: You just received an offer in the mail to transfer your $12,300 balance from your current credit card, which charges an annual rate of 20.1 percent, t..
Suppose you deposit $1000 in one year, $2000 in two years, and $4000 in three years. Assume a 4 percent interest throughout. How much will you have in 5 years?
What is the equivalent payoff of a portfolio consisting of an up-and-in call and an up-and-out call?
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