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!
2. United Pigpen is considering a proposal to manufacture high-protein hog feed. The project would make use of an existing warehouse, which is currently rented out to a neighboring firm. The next year's rental charge on the warehouse is $100,000, and thereafter the rent is expected to grow in line with inflation at 4% per year. In addition to using the warehouse, the proposal envisages an investment in plant and equipment of $1.2 million. This could be depreciated for tax purposes straight line over 10 years. Pigpen, however, expects to terminate the project at the end of eight years and to resell the plant and equipment in year 8 for $400,000. Finally, the project requires an initial investment in working capital of $350,000. Thereafter, working capital is expected to be 10% of sales in each of years 1 though 7. Year 1 sales of hog feed are expected to be $4.2 million, and sales are forecasted to grow at 5% per year, slightly faster than the inflation rate. Manufacturing costs are expected to be 90% of sales, and profits are subject to tax at 35%. The cost of capital is 12%. What is the NPV of Pigpen's project?
Market value ratios try to answer what question for potential investors? Do financial statements contain all of the necessary information to answer this question? Explain in terms of the P/E (price earnings) ratio.
A newly issued T bill with a $10,000 par value sells for $9,950, and has a 90 day maturity. What is the discount? A) 10.26 percent B) 0.26 percent C) 20.00 percent D) 2.00 percent
Both firms think they will have earnings of $55,000 a year continuously and because of their costs, neither firm pays any taxes. For the purposes of this problem, investors can also borrow money at 12% annually.
how much must you borrow to obtain 250000 in usable funds if you currently have 10000 on deposit at the bank? what is
ms. cleanair recived three offers from major automobile companies for her patent on a new hybrid drive system for
Winston Consulting has a return on assets of 16 percent, an equity multiplier of 1.75, and a dividend payout ratio of 60 percent. What is the firm's internal rate of growth?
There would be no effect on revenues, but pretax labor cost will decline by $44,000 per year. The marginal tax rate is 35% and WACC is 12%.
If the goal of the practice is to earn a 20% profit margin on each examination, how should the examinations be priced?
Service sector using pricing decision and prepare a revenue budget on an accrual basis and including all sources of revenue discussed previously
Martin Software has 9.4% coupon bonds on the market with 19 years to maturity. The bonds make semiannual payments and currently sell for 107.5% of par.
This new project will generate additional sales revenue of $112,000 while additional operating costs, excluding depreciation, will be $68,000. Vandelay' s marginal tax rate is 35%. What is the projects free cash flow in year 1?
eyring company invested 10000000 in a new product line. the life cycle of the product is projected to be seven years
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