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All sales were cash sales and all expenses were cash expenses. Moline"s tax rate is 30%. The after-tax net cash inflow was?
An investment project costs $10,000 and has annual cash flows of $2,600 for six years. What is the discounted payback period if the discount rate is 0%? What if the discount rate is 10%? If it is 1
Investment P offers to pay you $5,500 per year for nine years, whereas Investment T offer to pay $8000 per year for five years. Which of these cash flows streams has the higher present value if the
The company"s expenses were $400,000 and were all cash expenses. The tax rate was 30%. The after-tax net cash inflow at Seidelman last year was.
The first payment will be at the end of the current year and all subsequent payments will be made at year-ends. What is the present value of the lease payments if the discount rate is 6%?
Assume that interest rates have increased substantially. Would this tend to increase or decrease the market value of a firm's liabilities (relative to the book value of liabilities)?
The annual payment under the lease will be $2,500, with payments being made at the beginning of each year. If the discount rate is 14%, the present value of the lease payments is closest to?
A company anticipates a taxable cash expense of $70,000 in year 2 of a project. The company"s tax rate is 30% and its discount rate is 10%. The present value of this future cash flow is closest to
How much money must be invested now in order to be able to withdraw $5,000 from this investment at the end of each year for 8 years, the first withdrawal occurring one year from now?
Garvin Enterprises' bonds currently sell for $1,150. They have a 6-year maturity, an annual coupon of $85, and a par value of $1,000. What is their current yield?
How much would you have to invest today in the bank at an interest rate of 5% to have an annuity of $1,400 per year for 5 years.
What is the maximum amount that you could withdraw at the end of each of the next 6 years? Select the amount below that is closest to your answer.
This machine, which has no salvage value, has an estimated useful life of 5 years and will be depreciated on a straight-line basis. For this machine, the simple rate of return would be?
Mercer Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The simple rate of return on the new machine is closest t
The project would provide net operating income each year as follows for the life of the project: The company"s required rate of return is 10%. What is the payback period for this project?
The machine will increase Major"s cash flows by $2,000 annually for 5 years. Major uses straight-line depreciation. The company"s required rate of return is 10%. What is the payback period for th
Suppose the exchange rate between U.S. dollars and Swiss francs is SF 1.41 = $1.00, and the exchange rate between the U.S. dollar and the euro is $1.00 = 1.64 euros. What is the cross-rate of Swiss
Consider an 8% coupon bond selling for $953.10 with 3 years until maturity making annual coupon payments. The interest rates in the next 3 years will be, with certainty, r1 = 8%, r2 = 10%, and r3 =
Information on four investment proposals is given below. Rank the proposals in terms of preference according to the project profitability index?
A piece of newly purchased industrial equipment costs $ 1,080,000 and is classified as seven-year property under MACRS (modified accelerated cost recovery system). Calculate the annual depreciation
Bowen Company is considering several investment proposals, as shown below. If the project profitability index is used, the ranking of the projects would be?
You can purchase a new machine for $1,875,000which will provide annual net cash flow of $650,000 per year for 5 years. You sell the machine for $120,000 after taxes at the end of the 5th year. Requi
A project requires an initial investment of $70,000 and has a project profitability index of 0.932. The present value of the future cash inflows from this investment is?
If the tax rate is 35 percent and the discount rate is 12 percent, should the company buy and install the machine press? Why or why not?
What happens to the present value factor as our discount rate or interest rate increases for a given time period?