What is the future worth of polisher

Assignment Help Financial Management
Reference no: EM131323986

Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 13 years and no salvage value. Polisher 1 requires an initial investment of $23,000 and provides annual benefits of $4,360. Polisher 2 requires an initial investment of $11,000 and provides annual benefits of $1,820. Polisher 3 requires an initial investment of $16,800 and provides annual benefits of $3,680. MARR is 12% year.

What is the future worth of Polisher 1? $

Reference no: EM131323986

Questions Cloud

Calculate the first four dividends : Burton Corp. is growing quickly. Dividends are expected to grow at a rate of 32 percent for the next three years, with the growth rate falling off to a constant 6.7 percent thereafter. If the required return is 14 percent and the company just paid a ..
What must coupon rate be on the bonds : Volbeat Corporation has bonds on the market with 11 years to maturity, a YTM of 9.5 percent, a par value of $1,000, and a current price of $946. The bonds make semiannual payments. What must the coupon rate be on the bonds?
Calculate the after-tax cost of debt under each conditions : Calculate the after-tax cost of debt under each of the following conditions: Interest rate of 13%; tax rate of 0%. Round your answer to two decimal places. % Interest rate of 13%; tax rate of 25%
What is the future worth of the equipment : Alpha Electronics can purchase a needed service for $90 per unit. The same service can be provided by equipment that costs $110,000 and that will have a salvage value of zero at the end of 10 years. Annual operating costs for the equipment will be $7..
What is the future worth of polisher : Final Finishing is considering 3 mutually exclusive alternatives for a new polisher. Each alternative has an expected life of 13 years and no salvage value. Polisher 1 requires an initial investment of $23,000 and provides annual benefits of $4,360. ..
What price should the bonds sell : Ken Williams Ventures' recently issued bonds that mature in 15 years. They have a par value of $1,500 and an annual coupon of 6%. If the current market interest rate is 9%, at what price should the bonds sell?
Estimate the total value of the firm and value per share : Do Pham is evaluating Phaneuf Accelerateur using the FCFF valuation approaches. Pham has collected the following information (currency in euro): Phaneuf has net income of 250 million, depreciation of 90 million, capital expenditures of 170 million, a..
Highest rate of return possible within their personal level : Financial planners (and engineering economists) unanimously encourage people to seek out the highest rate of return possible within their personal level of risk tolerance. Amount of Required Annual Deposit.... find this at each interest rate.
What is your estimate of the stocks price : It is projected that a firm’s next four annual dividends will be $0.50, $1.00, $1.50, and $1.75. After the fourth dividend, dividends are expected to grow at a constant annual rate of 7%. Assuming that the required rate of return for the stock is 16%..

Reviews

Write a Review

Financial Management Questions & Answers

  Most corporations pay quarterly dividends on common stock

Most corporations pay quarterly dividends on their common stock rather than annual dividends. Barring any unusual circumstances during the year, the board raises, lowers, or maintains the current dividend once a year and then pays this dividend out i..

  What is the debt holders required rate of return

The firm has bonds outstanding that mature in four years. The par value of each bond is $1000, the coupon rate is 8%, paid annually, and the current price is $988. The firm’s tax rate is 40%. What is the debt holder’s required rate of return?

  What is standard deviation of these returns

Over the past six years, a stock had annual returns of 14 percent, -3 percent, 8 percent, 21 percent, -16 percent, and 4 percent, respectively. What is the standard deviation of these returns?

  What was his total return for this investment

Three years ago, James Matheson bought 340 shares of a mutual fund for $23 a share. During the three-year period, he received total income dividends of 0.68 per share. He also received total capital gain distributions of $1.65 per share. At the end o..

  Advising is trading off risk and return

We are trying to get a sense of how an investor you are advising is trading off risk and return. After several long discussions you come to the conclusion that his level of risk aversion is somewhere between A=3 or 4. A) Draw the indifference curve i..

  Companies for building up cash and not paying dividends

Why did Microsoft decide in 2004 to double its cash dividend and buy back up to $30 billion of the company's stock over the next four years?

  Flow-to-equity method-value of equity after recapitalization

Valuation Methodologies ABC, Inc., is an unlevered venture that reached its mature life-cycle stage. ABC is expecting earnings before taxes of $30 million in perpetuity. Calculate the value of ABC before the recapitalization plan is announced. What i..

  Equipment to produce specialized aluminum products

ALUM, Inc. uses high-tech equipment to produce specialized aluminum products for its customers. Each one of these machines costs $1,520,000 to purchase plus an additional $48,000 a year to operate. The machines have a five-year life after which they ..

  Describe how you would perform a cost analysis

The Operating Budget-Describe how you would perform a Cost Analysis. (Title this section Cost Analysis)

  The expected sales under present production methods

Wingler Communications Corporation (WCC) produces premium stereo headphones that sell for $28.80 per set, and this year's sales are expected to be 460,000 units. Variable production costs for the expected sales under present production methods are es..

  Determine the amount of the annual depreciation

Your firm is considering a new three-year project with unit sales expected to be 10,000 per year. They expect the unit sale price to be $15 with variable costs accounting for $8.25 per unit. Fixed costs are estimated to be $15,500 per year. Determine..

  Ethical standard for corporations financial-tax reporting

Outline your findings on the ethical standard for a corporation's financial and tax reporting. State specific examples of the ethical standards and laws that you are following as the tax and financial analyst. Based on your research, state recent exa..

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd