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!
VT is considering investing in a new piece of equipment that cost $100.000.00. If the copany buys the equipment their inventory will increase $10,000.00. The new equipment will have a useful life of 5 years and will depreciate in straight line depreciation. At the of 5 years the equipment will sell for $15,000.00. The investment will help generate additional revenue of $250,000.00 per year with a cost of $220,000.00 before depreciation. The company is in a 40% tax bracket. The cost for capital is 10%.
1.) What is the initial cash flow if the company purchases the equipment?
2.) What is the after tax cash flow from the sale of the equipment?
3.) What is the annaul cash flow?
4.) What is the net present value?
5.) Should Vt buy the equipment? And Why?
United Airlines recently inaugurated service to Japan and now wants to finance the purchase of Boeing 747s to service that route.
John Wilson is a conservative investor who has asked your advice about two bonds he is planning. One is seasoned issue of the Capri Fashion Company that was first sold 22 years ago at a face value of $1000, with a 25-year term, paying 6 percent.
Stock X has a standard deviation of return of 10 percent. Stock Y has a standard deviation of return of 15 percent. The correlation coefficient between stocks is 0.5.
Benson Corporation is evaluating option uses for a three-story manufacturing and warehousing building that it has bought for $225,000.
What benefit is it to a firm to buy back some of its common stock, increase use of internal financing instead of external financing
Assume you have decided to become a venture capitalist, but you are worried about capital losses and lower rate of return.
Compute of Net Asset Value (NAV) of shares and Assume that you have recently purchased 100 shares in an investment company
Alpha Enterprises acquired a patent from Simpson Research Company on 1/1/01 for $4million. The patent will have a useful life of ten years, even though it's legal life is twenty years.
Explain Investment analysis in relation to harvest forest and Assume all cash flows occur at the year of harvest
A stock just paid a dividend of 2.00$. Due to the introduction of a proprietary product, the dividend growth rate is expected to be 30 percent for the next two years, 15% for the years 3 and 4, and then return to a growth rate assumption of four perc..
What assumptions are significant when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application?
Explain the direct and indirect method in quoting foreign currencies. Provide some examples.
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