Your firm purchased machinery with a 7-year MACRS life for $10.60 million. The project, however, will end after 5 years. If the equipment can be sold for $5.10 million at the completion of the project, and your firm’s tax rate is 35%, what is the after-tax cash flow from the sale of the machinery? Use the MACRS depreciation schedule. (Enter your answer in dollars, not in millions.)

## An investment project has annual cash inflowsAn investment project has annual cash inflows of $5,400, $6,500, $7,300, and $8,600, and a discount rate of 10 percent. What is the discounted payback period for these cash flows if the initial cost is $9,000? |

## Relevant in evaluating the quality of currency forecastsWhich of the following statistics is the least relevant in evaluating the quality of currency forecasts? The percentage time the forecasts were on the correct side of the forward rate.Which of the following statistics is the least relevant in evaluat.. |

## Information provided prepare the following operating budgetsBased on the information provided prepare the following operating budgets for 2015: Sales, Production, Direct Material, Direct Labor, Manufacturing Overhead, Ending Inventory, Cost of Goods Sold, Selling, General and Administrative Budgets, and a Bud.. |

## What is the present value of your winningsYou have just received notification that you have won the $1.4 million first prize in the Centennial Lottery. However, the prize will be awarded on your 100th birthday, 70 years from now. The appropriate discount rate is 8 percent. What is the presen.. |

## Make debate and discussion more productiveIt can be easy to dismiss those who disagree with you as uninformed. How does understanding the different world view of someone who disagrees with you make debate and discussion more productive? |

## What rate of return will the investBlue Diamond preferred stock is currently selling for $38.55. The company pays $6.81 in annual dividends on this preferred stock. What rate of return will the investor expect to receive on this stock if the stock is purchased today? Round the answer .. |

## Calculate the bonds macaulays durationYou own a corporate bond that carries a 5.8 percent coupon rate and pays $ 10,000 at maturity in exactly two years. The current market yield on the bond is 6.1 percent. Coupon interest is paid semiannually and the market price is $ 9,944.32. a. Calcu.. |

## Preferred stock dividends are tax deductibleAll else equal, an increase in a company’s stock price will increase its marginal cost of new common equity, re. If a company’s tax rate increases but the YTM of its noncallable bonds remains the same, the after-tax cost of its debt will fall. When c.. |

## How much is the bonds face value and couponYou are considering purchasing a 15-year 8% unsecured bond at a price of $960: How much is the bond’s face value? How much is the bond’s coupon? What is the bond’s current yield? |

## What must the expected return on the market beA stock has an expected return of 8 percent, its beta is 0.85, and the risk-free rate is 3.6 percent. What must the expected return on the market be? |

## The yeild to maturirty on the bond with the cusipThe Yeild to maturirty on the bond with the cusip 855244AD1 is less than the coupon on the bond. A firm has a cost of equity of 13 percent, a cost of preferred of 11 percent, and an aftertax cost of debt of 6 percent. Givin this, which one of the fol.. |

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