Barney wants to increase the production rate in the Pebble Tech Manufacturing plant by adding a new machine. Calculate the NPV for the following capital budgeting proposal: $200,000 initial cost, to be depreciated straight line over five years to an expected salvage value of $10,000. Resale value of the machine is expected to be $11,000. The tax rate is 35% tax rate. %85,000 additional annual revenues, $33,000 additional expense, $10,000 additional investment in working capital. What is the projected cash flow for year 0? What is your projected cash flow for year 2? what is your projected cash flow for year 5?
2. A firm is considering a project with an IRR of 8%. The firm's cost of debt is 6%, its cost of equity is 13%, and its marginl tax rate is 23%. The firm's debt ratio (D/V), in market values is 0.5, and its proportion of equity (E/V) is also 0.5. The firm shoud?
A. reject the project regardless of the financing method
B. accept the project regardless of the financing method
C. accept the project only if it can be financed entirely with equity
D. accept the project only if it can be financed entirely with debt
3.Decreases in the risk free rate will reduce:
A. The market risk premium
B. the stock's risk premium
C. the Stock's beta
D. The stock's expected return?
4.The ABC company has 3 million shares of common stock outstanding at a book value of $3 per share. The stock trades for $4.00 per share. IT also has $3 million in face value of debt that trades at 80% of par. The company has no other important sources of financing. What is its appropriate debt ratio (D/V) to use when calculating the WACC?
5. According to the CAPM, a stock's risk premium is equal to the
A. expected market return times beta
B. Treasury bill yield plus expected market return.
C. risk-free rate plus expected market risk premium
D. expected market risk premium times beta
What specific steps can organizations take to ensure that bilingual workers skills are compensated when these skills are job relevant, in order to encourage bilingualism ...May 14 2020
30% of the fifth grade students in a large school district read below grade level. The distribution of sample proportions of samples of 100 students from this population ...Apr 13 2020
“It is better to rely on stereotypes than to enter into a relationship with someone from another culture without any idea of what they believe in.” Discuss the merits and...Jul 08 2020
For various reasons, some healthcare organizations are unable to pay market rates for certain positions. What advice do you give such an organization about possible recru...Jul 09 2020
i need a spanish story translated. It is called “Mundo”. It is about 20- 30 pages long. Here is a link hopefully it works. https://cms.psu.edu/Fall1/201213FA/201213FAUP__...Feb 04 2020
Which of the following is a major objective of the Fair Labor Standards Act?a. Give labor unions the right to bargain on compensation components.b. Promote sa...Dec 16 2019
4 Discrete Probability Distributions Problems. Additional Requirements Min Pages: 1 Level of Detail: Show all work Other Requirements: Please provide the solutions as spe...Aug 10 2020
If Sam currently studies 3 hours per week and attends class 4 out of 4 possible hours per week and had a GPA of 2.75 last semester. Using the equation Grade (0.50 x hours...Apr 18 2020
1. accured interest on notes receivable is 30 2.1,000 of unearned revenue has been earned 3. Three years rent totaling 42000 was paid in advance begining of the year 4. S...Jun 03 2020
Step-Down Method versus Direct Method“I can’t understand what’s happening here,” said Mike Holt, president of Severson Products, Inc. “We always seem to bid too high on j...Jun 27 2020