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!
Another utilization of cash flow analysis is setting the bid price on a project. To calculate the bid price, we set the project NPV equal to zero and find the required price. Thus the bid price represents a financial break-even level for the project. Guthrie Enterprises needs someone to supply it with 152,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. It will cost you $1,920,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. You estimate that in five years this equipment can be salvaged for $162,000. Your fixed production costs will be $277,000 per year, and your variable production costs should be $9.70 per carton. You also need an initial investment in net working capital of $142,000. If your tax rate is 34 percent and you require a return of 12 percent on your investment, what bid price per carton should you submit? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
In mid-2010, some policymakers and economists were afraid that the U.S. economy might slip into another recession,- What does an upward-sloping yield curve have to do with the chance that a recession may occur?
Robert White will receive from his investment cash flows of $4,450, $4,775, and $5,125. If he can earn 7 percent on any investment that he makes, what is the future value of his investment cash flows at the end of three years?
What is the duration of a bond with a par value of $ 10,000 that has a coupon rate of 3.5 percent annually and a final maturity of two years? Assume that the required rate of return is 4 percent compounded semiannually. What is the duration of a two-..
Assume that the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are relevant data estimates.
Simple simon's bakery puts gases supplies in terms of 1.1/10, net 24. If simple simons owner an interest rate of 11.6% on borrowed funds. Should simple simons enter the loan agreement with the bank and begin taking the discount?
You can invest the money in an account that pays 5% interest each year. How long will it take you to have the money to purchase the car
Write a 500-1,000 word essay describing Net Present Value, and what Net Present Value means to your future.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 4.3%.
Suppose you invest $20,000 of your own money in a business as a sole proprietor, and then borrow an additional $10,000. Suppose the business fails. Which of the following describes your situation, and what is your total loss?
Assume that the market portfolio is not efficient. Both stocks have the same beta and an expected return of 12%.
Shinoda Corp. has 8 percent coupon bonds making annual payments with a YTM of 7.3 percent. The current yield on these bonds is 7.65 percent. How many years do these bonds have left until they mature?
Consider a 6-year 8-percent bond purchased at a price of $950.What is its yield to maturity? What is the realized yield if the coupon reinvestment rates are: 12% (today), 8% (in one year), 5% (in two years), 11% (in three years), 9% (in four years), ..
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