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!
Hawkeye Cleaners has been considering the purchase of an industrial dry-cleaning machine. The existing machine is operable for three more years and will have a zero disposal price. If the machine is disposed now, it may be sold for $60,000. The new machine will cost $200,000 and an additional cash investment in working capital of $60,000 will be required. The new machine will reduce the average amount of time required to wash clothing and will decrease labor costs. The investment is expected to net $50,000 in additional cash inflows during the year of acquisition and $150,000 each additional year of use. The new machine has a three-year life, and zero disposal value. These cash flows will generally occur throughout the year and are recognized at the end of each year. Income taxes are not considered in this problem. The working capital investment will not be recovered at the end of the asset's life.
What is the net present value of the investment, assuming the required rate of return is 24%?
Would the company want to purchase the new machine?
$(32,800); yes $16,400; yes $32,800; no $(16,400); no
200,000 in assets to get into operation with only two financing alternatives 1. 2.50 percent equity and 50% debt. you will put the entire 200,000 required to purchase the assets
Explain Determination of real rate of return
you are considering the choice between investing 50000 in a conventional 1-year bank cd offering an interest rate of 5
Sales for year just ended were $400, and fixed assets were used at 80% of capacity, but current assets were at optimal levels. Sales are expected to increase by 5% next year, the profit margin is 5%, and the dividend payout ratio is 60%.
a. What is the price of each bond? b. What is the value of the portfolio? c. What is the duration and modified duration of each bond? d. What is the modified duration of the portfolio using the weighted average method?
the owner of the supplier firm has indicated that he would be willing to sell his business for 500000. i expected this
one year ago peyton purchased 3600 shares of broncos stock for 101124. today he sold those shares for 26.60 a share.
Calculate the required pre-tax earnings to cover debt and preferred stock obligations, before and after the recapitalization?
Your stock portfolio consists of only two stocks. You have $30,000 in Company A and $35,000 in Company B. Company A has an actual return of -8% and Company B has a return of 12%. What is the return on your portfolio?
a bank is offering you a credit card with an apr of 12.95. the banks compounds the interest rate on a monthly basis.
Favored stock will pay a dividend this year of $3.12 per share. Its dividend yield is 8%. At what price is the stock selling?
how does management determine the total amount of working capital
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