Help needed from geniusy_2006 only
Need tutorial help please for the FIN/571 quiz, final and problem set.
Question- New machinery cost 2,263,324
life of 5 yrs
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2 – -223,178 cash flow
3- 837,773 cash flow
4- 1,014,719
5 – 717,559
What is the NPV if discount rate is 12.53% ?
Question:
Plans to operate a farm for 10 years
initial investment 11.80 million
2.70 million for land
9.10 for trucks and equip
it is all expected to be sold at the end of 10 years at a price of 5.04 million – 2.47 million above book value. The farm is expected to produce revenue of 2.05 million per year and annual cash flow from operations equals 1.90 million – marginal tax rate is 35% with discount rate 10% – calculate NPV
Question:
eac h bottle sells for $20 -with demand 15,000 bottles per year – sales will be 92% as high if the price is raised 7%. Cost per bottle is $10 with total fixed cash cost for the year $100,000. Depreciation and amortization charges are $20,000 and the firm has 30% marginal tax rate – mgmt expects increase in working capital need of $3,000 for the year What will be the effect of the price increase on the firm’s FCF for the year:
At $20/bottle the FCF is $____________________ and the new price FCF $_________________
Question:
Capital structure with current market values which consist of 44% debt, 13% perferred stock and 43% common stock. If the returns are 10%, 11% and 19% for the debt, preferred stock and common stock respectively, what is the after-tax WACC assuming marginal tax rate is 40%.
Thanks!!
Business & Finance homework help