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!
St. Johns River Shipyard's welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $82,000 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $28,000 to $56,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the firm's WACC is 11%.
Should the old welder be replaced by the new one? (Yes/No)
What is the NPV of the project? Round your answer to the nearest cent.
in working out your responses to the discussion question you should choose examples from your own experience or find
You purchase one IBM July 120 call contract for a premium of $5. You hold the option until the expiration date when IBM stock is at $123 per share on the market. How much profit or loss you will realize on the investment?
Explain why if history records that stocks outperform bonds, why Life Insurance Companies invest so little in their general accounts. Why do you suppose Casualty Insurance companies invest even less? Do you suppose the newer insurance products such a..
A strategy consists of buying a market index product at 2010 and longing a put on the index with a strike of 2000. If the put premium is $18.00 and interest rates are 0.25% per month, what is the profit or loss at expiration (in 6 months) on the comb..
Suppose you have a $1,000 face value bond with 12 years to maturity, a coupon rate of 6% and a yield to maturity of 8%. If the bond makes semiannual payments, what is its price today?
The common stock and debt of Northern Sludge are vlaued at $60 million and $40 million, respectively investors currently require a return of 16.7% on the common stock and 7.0% on the debt. If Northern Sludge issues an additional $18 million of common..
To find out if the results of the study have any practical applications, which section of the research manuscript should you read?
Show the impact on the Federal Reserve's balance sheet of a foreign exchange market intervention where the Fed sells $1,000 worth of foreign exchange reserves.
Under which of the following discounting methods will the present value of an investment be the highest, assuming the same annual interest rate?
Which one of the following is the prime objective of a residual dividend policy? _______ Maintaining a stable dividend Increasing the dividend at a steady pace Meeting the firm's investment needs Maintaining a stable dividend payout ratio
You placed $6,559 in a savings account today that earns an annual interest rate of 5 percent compounded annually. How much will you have in this account at the end of 29 years. Assume that all interest received at the end of the year is invested the ..
An investment has an expected return of 12% per year with standard deviation of 6%. Assuming that the returns on this investment are at least roughly normally distributed, how frequently do you expect to lose money?
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