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These projects may be made up and very simplified but must show numerical examples. Explain the value of NPR, IRR and payback.
Compute the net annual cost savings promised by the automated welding machine.
Determine the net present value of the soda machine.
Determine the net present value of the proposed mining project. Should the project be accepted? Explain.
Calculate NPV, IRR, MIRR, payback, and discounted payback for each project.
Pros and cons of static and flexible budget. This section will discuss your topic and the purpose of the paper.
Assuming that South Tel has sufficient taxable income from other projects so that it can expense the cost of the software immediately
a. What are the project free cash flows (PFCFs) for this project? b. Using NPV and IRR, should CT invest in this project?
1) What cash flows will you pay and receive from your investment in the bond per $100 face value? 2) What is the internal rate of return of your investment?
You have learned about the three capital budgeting techniques financial managers use to make decisions about capital expenditures.
If Healthy Foods has an annual interest expense of $10,000, calculate the degree of financial leverage at both 20,000 and 25,000 bags.
Ignoring the effect of taxes, what is the "internal rate of return" (IRR) on the proposed investment.
Revenues and other cash expenses will remain the same. What is the cost-reducing project NPV?
Are the valuation models for common stock with constant, zero growth dividend payments and for preferred stock very similar? Please explain.
The bond matures in 12 years and sells at a price of $1,080. What is the bond's nominal yield to maturity?
An analyst is able to calculate some other necessary components of the Black-Scholes model:
The profitability index is a useful way of adjusting the net present value rule in case of:
Which of the following actions are likely to reduce the length of a company's cash conversion cycle?
A stock has an expected return of 12.60%. Its beta is 1.49 and the risk-free rate is 5.00%. What is the market risk premium?
What is meant by capital planning? Why is IRR important to an organization? Why is NPV important to a project?
Which of the following ratios would tell an investor about the profitability of the organization?
1) Which investment has the higher IRR? 2) Which investment has the higher NPV when the cost of capital is 7%?
What is the present value today of these future cash flows? (Hint: draw a time line to illustrate exactly the cash flows for this problem.)
Benson Designs has prepared the following estimates for a long-term project it is considering.
How many shares of common stock must be issued, and at what price, to raise the required capital?