Reference no: EM131924168
1) Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product. The machine will cost $175,000, has an estimated useful life of 7 years, a salvage value of zero, and will increase net annual cash flows by $37,138.
What is its approximate internal rate of return? (Round answer to 0 decimal place, e.g. 125.)
2) Viera Corporation is considering investing in a new facility. The estimated cost of the facility is $1,696,729. It will be used for 12 years, then sold for $719,400. The facility will generate annual cash inflows of $368,500 and will need new annual cash outflows of $153,200. The company has a required rate of return of 7%.
Calculate the internal rate of return on this project. (Round answer to 0 decimal place, e.g. 125.)
3) Swift Oil Company is considering investing in a new oil well. It is expected that the oil well will increase annual revenues by $120,000 and will increase annual expenses by $68,000 including depreciation. The oil well will cost $468,000 and will have a $11,000 salvage value at the end of its 10-year useful life. Calculate the annual rate of return. (Round answer to 2 decimal places, e.g. 12.47.)
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Calculate the price of european call option and put option
: Calculate the price of a European call option and put option with strike K = 20 and T equal to 4 months.
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Determine the firm net capital spending
: The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.8 million, and the 2015 balance sheet showed long-term debt of $6 million.
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Management with regard to proposed equipment? expenditure
: what action should Jenny recommend to management with regard to the proposed equipment? expenditure?
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Discuss cash flows from financing activities
: In 2015, Usher Sports Shop had cash flows from investing activities of -$4,554,000 and cash flows from financing activities of -$5,975,000.
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Rebuilt spot-welding machine to be used in manufacture
: Kanye Company is evaluating the purchase of a rebuilt spot-welding machine to be used in the manufacture of a new product.
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Fixed-rate mortgage
: A homeowner can obtain a $350,000, 30-year fixed-rate mortgage at a rate of 6.0 percent with zero points or at a rate of 5.5 percent with 2.5 points.
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What was the firm given year operating cash flow
: The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $5.4 million, and the 2015 balance sheet showed long-term debt of $5.6 million
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Evaluate the cash flow to stockholders
: The 2014 balance sheet of Sugarpova's Tennis Shop, Inc., showed long-term debt of $3.1 million, and the 2015 balance sheet showed long-term debt of $3.2.
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How much interest did he pay over five years of mortgage
: A borrower took out a 30-year fixed-rate mortgage of $2,500,000 at a 6.2 percent annual rate. How much interest did he pay over 5 years of the mortgage.
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