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How much would an investor earn on a share purchased one year ago for $63 if it paid an annual cash dividend of $3.75.
An investor buys a bond for $10 000. The bond pays $300 interest every six months.
Assume you purchased a bond for $9500. The bond pays $300 interest every six months.
The second is a share that pays quarterly dividends of $0.60 per share and is trading at $27 per share; you expect to sell in one year for $30.
You are considering purchasing a bond that pays annual interest of $50 per $1000 of par value.
Discuss the principal limitations of the cash payback method for evaluating capital investment proposals?
What information does the cash payback period ignore that is included by the net present value method?
Why would the cash payback method understate the value of a project with a large residual value?
A net present value analysis used to evaluate a proposed equipment acquisition indicated a $115,000 net present value.
What are the major disadvantages of the use of the internal rate of return method of analyzing capital investment proposals?
What method can be used to place two capital investment proposals with unequal useful lives on a comparable basis?
What are the major advantages of leasing a fixed asset rather than purchasing it?
What qualitative and quantitative considerations do you believe Monsanto would have considered in its strategic evaluation of these investments?
Determine the average rate of return on the equipment, giving effect to straightline depreciation on the investment.
Determine the net cash flows for the first year of the project, Years 2-9, and for the last year of the project.
Why is one product line preferred over the other, even though they both have the same total net cash flows through eight periods?
Calculate the net present value of the new hotel, using the present value factor of an annuity of $1 at 10% for 20 periods of 8.5136.
The bulldozer is expected to operate for 1,850 hours per year for five years. Customers will be charged $140 per hour for bulldozer work.
The fixed expenses for running the ship, other than depreciation, are estimated to be $100,000,000 per year.
Determine the present value index for the two machines. Round to two decimal places.
The plant manager of Jurassic Industries is considering the purchase of new automated assembly equipment.
Determine a present value factor for an annuity of $1 which can be used in determining the internal rate of return.
The delivery truck would cost $65,970 and could be used to deliver an additional 90,000 bags of taquitos chips per year.
Determine the internal rate of return by computing a present value factor for an annuity of $1.
The average rate of return on the average investment has been computed to be 15%, and the cash payback period was computed to be ten years.