Calculate npv-irr - mirr - payback and discounted payback, Financial Management

Assignment Help:

Calculate NPV-IRR - MIRR - payback and discounted payback:

1-      Define and explain as well as you can of the following:

a-      Goals and objectives of the Corporate Firm and Xenophon's new science.

b-      Beta Coefficient.

c-       Yield to Maturity.

d-      Compounding Frequencies and Effective Annual rate.

e-      Ordinary Annuity and Annuity Due.

f-       Internal Rate of return and Modified IRR.

g-      Present value of a differential growth (g1 and g2) Stock.

2-      You are planning for retirement over the next 30 years. To do this, you will invest $700 a month in a stock account and $300 in a bond account. The return of the stock account is expected to be 10% and the bond account will pay 6%. When you retire, you will combine your money into an account with an 8% return. How much can you withdraw each month from your account assuming a 25 year withdraw period?

 

3-      A) Find the present values and the future values of the following cash flows streams at 8% compounded annually

5

4

3

2

1

0


 $ 300.00

 $ 400.00

 $ 400.00

 $ 400.00

 $ 100.00

 $         -  

Stream A

 $ 100.00

 $ 400.00

 $ 400.00

 $ 400.00

 $ 300.00

 $         -  

Stream B

 

                B) What are the PVs and the FVs of the streams t 0% compounded annually?

4- Warren Corporation will pay $3.60 per share dividend next year. The company pledges to increase its dividends by 4.5% per year indefinitely. If you require a 13% return on your investment, how much will you pay for the company's stock today?

4- A firm with 14% WACC is evaluating two projects for this year's capital budget. After-tax cash flows, including depreciation are as follows:

5

4

3

2

1

0


 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $ 2,000.00

 $  (6,000.00)

Project A

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $ 5,600.00

 $(18,000.00)

Project B

a. Calculate NPV, IRR, MIRR, payback, and discounted payback for each project.

b. Assuming the projects are independents, which one(s) would you recommend?

c. If the projects are mutually exclusive, which would you recommend?

d.  Notice that the projects have the same cash flow timing pattern. Why is there a conflict between NPV and IRR?


Related Discussions:- Calculate npv-irr - mirr - payback and discounted payback

Why do analysts calculate financial ratios, Why do analysts calculate finan...

Why do analysts calculate financial ratios? Ratios are comparative measures.  For the reason that the ratios show relative value, they permit financial analysts to compare inf

What is deferred incomes, Q. What is Deferred Incomes? Deferred incomes...

Q. What is Deferred Incomes? Deferred incomes are incomes received in advance before supplying goods or services. They represent funds received by a firm for which it has to su

Downside risk of convertible bonds, When the underlying stock becomes...

When the underlying stock becomes worthless, the percentage price declines the investors experience is given by, Percentage of Downside Risk=

Evaluate earning yield plus growth in earning method, Q. Evaluate Earning Y...

Q. Evaluate Earning Yield plus Growth in Earning Method? Earning Yield plus Growth in Earning Method: - If the EPS of a company is likely to grow at a constant rate of growth t

State about the audit plan contents, State about the Audit plan contents ...

State about the Audit plan contents 1. Report requirements and terms of reference. 2. A review of business and financial position, reviewing why changes had occurred in curr

Evaluate the critical path, a) Definitions of EST and LFT needed in order t...

a) Definitions of EST and LFT needed in order to explain the differentiation between the terms. The EST of each activity will depend on the LFT of all preceding activities. b) S

Advantages of budgetary control, ADVANTAGES OF BUDGETARY CONTROL 1. Pr...

ADVANTAGES OF BUDGETARY CONTROL 1. Profits are maximizes. 2. It makes easy the controlling of activities. 3. Effective co-ordination is made achievable. 4. Executive

Implications of gordon’s fundamental valuation, Q. Implications of Gordons ...

Q. Implications of Gordons fundamental valuation? Explanation: - The implications of Gordon's fundamental valuation may be as below: (1) While the rate of return of the firm

Miller-Orr model, Beta plc sets its minimum cash balance as $1,000.00 & eas...

Beta plc sets its minimum cash balance as $1,000.00 & eastimates the following transaction cost sale/purchase =$12 standrsa deviation =$1,200 per day Interest rate =14.6% p.a or 0

Accounting principles board, Q. Accounting Principles Board ? Accountin...

Q. Accounting Principles Board ? Accounting Principles Board (APB) -senior technical committee of AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS (AICPA) that issued pronoun

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd