Reference no: EM13910099
Part 1. Capital Budgeting Practice Problems
a Use expected cash flows:
Year Cash flow
0 -$400,000
1 $100,000
2 $120,000
3 $850,000
Show the PV with the following discount rates: 0%, 2%, 6%, 11%
What is IRR with a cost of capital of 5%?
Plot the discount rate on a chart, show where graph intersects horizontal axis.
Describe what you see in the chart/graph.
b. Use expected cash flows:
Year Cash flow
0 -$815,000
1 $141,000
2 $320,000
3 $440,000
Calculate the IRR.
Show the PV with the following discount rates: 1%, 4%, 10%, 18%
Plot the discount rate on a chart, show where graph intersects horizontal axis.
Describe what you see in the chart/graph.
c. What is the PV of a project requiring a $4.2 million investment has a profitability index of 0.94?
|
What is incremental investment in working capital for 2012
: If the working capital balance was $140,000 at the end of 2011 and was $100,000 at the end of 2012. What is the incremental investment in working capital for 2012?
|
|
How do you depreciate land
: I bought my car for 28,000 five years ago, it is now worth 16,000 (net of selling expenses). I want to use my car in a new taxi business that I am starting. What is the correct opportunity cost that should be used in calculating the NPV of my taxi..
|
|
Compute the mean and standard deviation of the population
: Find the mean and standard deviation of the population of all possible sample means when we assume that m equals 6.
|
|
Question regarding the gross profit percentage
: Benadryl is on sell this week for 25% off of the normal selling price at $10.00 per unit. If the pharmacy purchased Benadryl at $5.00 per unit, what is the gross profit percentage?
|
|
What is irr with a cost of capital of 5%
: Show the PV with the following discount rates: 0%, 2%, 6%, 11%, What is IRR with a cost of capital of 5% and Plot the discount rate on a chart, show where graph intersects horizontal axis.
|
|
Find the probability of observing a sample mean
: Use the properties of this sampling distribution to find the probability of observing a sample mean greater than or equal to 42.95 when we assume that m equals 42.
|
|
Article- internal rate of return
: Read the article below. Then write a one-to-two page paper answering the following question:-Which method do you think is the better one for making capital budgeting decisions - IRR or NPV?
|
|
Implementation
: An Outsourcing Journey found in the Cases section of your digital book.Focus upon the idea of the company's short-term objectives, and through internal and external analyses create functional tactics to support the company's implementation and outsou..
|
|
What is the specific heat of the gas
: An 80.0-gram sample of a gas was heated from 25 °C to 225 °C. During this process, 346 J of work was done by the system and its internal energy increased by 6965 J. What is the specific heat of the gas?
|