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!
This is a practice problem and I am not able to come up with the answer the prof. gives. Please help with a step by step on how to figure this out either with a financial calculator or on an Excel spreadsheet.
Gorton Industries is considering the purchase of a new machine which will cost $120,000, plus an additional $7500 to ship and install. The new machine will have a 5 year useful life and will be depreciated to zero using the straight line method. The machine is expected to generate new sales of $25,000 per year and is expected to save $17,000 in labor and electrical expenses over the next 5 years. The machine is expected to have a salvage value of $30,000. Gorton's income tax rate is 40%. What is the machine's IRR?
I know that the initial outlay is $127,500 (machine +ship and install)Depreciation is 127,500/5 = $25,500 per year for 5 yearsThere would be an offset in operating expenses of $3400 per year due to the $17,000 savings in labor and electrical.Then there is the salvage at year 5 which changes the tax and operating cash flow.
What is a way to keep managers accountable for their capital budgeting forecasts and estimates?
The Green Giant has a 6 percent profit margin and a 60 percent dividend payout ratio. The total asset turnover is 1.3 and the equity multiplier is 1.6. What is the sustainable rate of growth?
A Japanese company has a bond outstanding that sells for 96 percent of its ¥100,000 par value. The bond has a coupon rate of 6.30 percent paid annually and matures in 19 years.
You have been hired as a consultant to help estimate the cost of capital. You have been provided with the following data: rRF = 4.10%; RPM = 5.25%; and b = 1.30. Based on the CAPM approach, what is the cost of common from retained earnings?
Explain Current dividend, current price and PE ratio of stock and what was the net price change for the date covered by the paper
Furriers purchased 1000 shares of Loose Corporation stock on January 10, 2005, for $800 per share and classified the investment as securities Available for Sale.
You want to buy a new car, and the local bank will lend you 20,000. The load will be fully amortized over 5 years (60 months), and the nominal interest rate will be 12 % with interest paid monthly. what will be the monthly loan payment? what will ..
Reading Railroad's common stock is currently priced at $25, and its 8% convertible debentures issued at par, or $1,000 priced at $750.
You bought 100 shares of stock at $25 each. At the end of the year, you received a total of $500 in dividends, and your stock was worth $2,500 total. What was total dollar capital gain and total dollar return?
Subsidiary A of Mega Corporation has net inflows in Australian dollars of A$1,000,000, while Subsidiary B has net outflows in Australian dollars of A$1,500,000.
Boston depreciates oil rigs straight line over 10 years assuming no salvage value. The rig was just sold to Viking Petroleum for $34,000,000. What Capital Gain/Loss will Boston report on this transaction?
The ABC Co. has $1,000 face value stock outstanding with a market price of $1,112.9. The stock pays interest annually, matures in 14 years, and has a yield to maturity of 6 percent. What is the annual coupon amount?
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