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!
You are evaluating a project for Ultimate Inc. The project produces chew-resistant doghouses. You estimate the sales price of these doghouses to be $500 and sales volume to be 2,500 units per year over the project's three-year life. Variable costs amount to $300 per unit and fixed costs (not including depreciation) are $150,000 per year. The project requires an initial investment of $250,000 and this will be depreciated on a straight-line basis to zero over the three-year project life. There will be an initial net working capital investment of $90,000 (t0) and two further investments of $90,000 at the beginning of each year thereafter. The full amount of working capital will be recovered at the end of the project's life (i.e., $270,000 at t3). The tax rate is 35% and the required return on the project is 15%.
a. What is the EBIT for the project in the first year?
b. What is the operating cash flow for the project in year 2?
c. Suppose the actual market value of the initial investment at the end of year 3 is $50,000. What is the effect of the $50,000 salvage value on year 2 cash flows?
d. What is the NPV of this project?
What net benefit (cost) will the firm realize if it adopts the lockbox system? Should it adopt the propsed lockbox system?
In the mid-1990s, selected automobiles had an average cost of $12,000. The average cost of those same motor vehicles is now $20,000. What was the rate of increase for this item between the two time periods?
what is the difference between a stock dividend and a stock split? as a stockholder would you prefer to see your
Question: What is the current dividend per share? Note: Explain in detail.
Find the NPV and PI of an annuity that pays $500 per year for eight years and costs $2500. assume a discount rate of 6 %.
the expected rate of return on a share of common stock whose dividends are growing at a constant rate g is which of
present value of annuity problem you will receive 1000 at the end of the next 10 years assuming a 7 discount rate what
The common stock of Connor, Inc., is selling for $64 a share and has a dividend yield of 3.8 percent. What is the dividend amount?
simple mortgage loan calculation solve for interest rate if you know term in years loan amount and monthly payment. i
What is depreciation and why is it considered a noncash item? Give several examples.
If your friend can withdraw $2,886.46 now and at the beginning of each of the next three years before depleting the account, how many forints is each dollar worth today?
The project's NPV is $75,000 and the company's WACC is 10%. What is the project's regular payback?
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