Mathematics : Finance Help

Question 1Investment$$$$2,500,0001,000,0002,000,0001,500,000312%years0123NPVcash flows$ (2,500,000)$1,500,000$2,000,000$2,500,000$ 2,213,124.09The NPV is $ 2,213,124.09 calculated in excel using the NPV formulaQuestion 2The IRRNewEquipment$2,000,000Years0123IRRCash flows$ (2,000,000.0)$1,500,000$2,000,000$2,500,00074%The internal rate of return is 74% calculated in excelQuestion 3Pv = 13 000 000Retrofit 18 000 000Rate 8%Year 1: 18 000 000 * 1.08 = 19 440 000Year 2: 40 000 000NPV = - 13 000 000 + 19 440 000 + 40 000 000 = 46 440 000Question 4YearsCash flows0 $ (10,000,000)1 $19,440,0002 $40,000,000IRR220%The IRR is 220% calculated using excelQuestion 5Tax = 500 000/1 000 000 * 100% = 50 %Debt = 39 000 0000 2 000 000 26 000 000 = 11 000 000% debt = 11 000 000 / 39 000 000 * 100 % = 28.2%%Preferred equity = 12 000 000/ 39 000 000 * 100 % = 30.8%% Common equity = 14 000 000/39 000 000 * 100 % = 35.9%WACC = (% of debt)(Before-tax cost of debt)(1T) + (% of preferred stock)(cost of preferredstock) + (% of common stock)(cost of common stock)WACC = (6% * 28.2%)(1-50%) + (15% * 30.8%) + (10% * 35.9%) = 0.09056WACC = 9.06 %Question 6Total assets 3 600 000Total liabilities 10 000 000Tax 35%Equity = 3 600 000 10 000 000 = - 6 400 000% debt 50%% preferred equity = -88.9%% common stock = -88.9%WACC = (% of debt)(Before-tax cost of debt)(1T) + (% of preferred stock) ...


To Order an Original Plagiarism Free Paper on the Same Topic Click Here

Answers

Related Questions

Discussion Response: Substance Abuse Treatment Res...

PLEASE ONLY RESPOND IF YOU CAN HAVE IT COMPLETED BY 8:59PM TONIGHT EASTERN/NEW YORK TIME I need a response to the three different discussion postings...

For A-Plus Writer Only...

 Idea Checklist  One of the characteristics that entrepreneurs usually possess is the ability to see potential in existing products. This is part o...

Unit 3 Homework Help...

Unit III PowerPoint PresentationUltimately, a manager or supervisor within an organization should be responsible for team development. Inevitably, how...

Soldiers Seeking help...

Let's talk this week about how to identify common barriers to help-seeking among our military who were impacted by the trauma of war. What are the...

Philisopy 103...

This paper assignment expands upon your Week One Assignment and prepares you for the Final Paper. The expansion is to learn to improve one’s argumen...

discussion post...

Often, people have difficulty recognizing when they may be compromising their own personal ethics. This does not mean that they are unethical people,...

discussion...

Prior to beginning work on this discussion, read the webpage for the Behavior Analyst Certification Board (BACB), the  Harvey, Luiselli, & Wong, (200...

Secured Information Systems...

Once organizations have identified the main risks to their systems, they should develop a security policy to protect the company's assets. This w...

Cause and Effect - MLA format essay...

Please read and understand it before you start!This paper Must be MLA format if you do not know how do not waste my time! Cause and Effect is about s...

Philosophy 103...

Week 3: Examples of Inductive Inference We have learned in Chapter 5 of our book that inductive inference is the most common kind of inference of all...

i need this assigment due today at 7:00pm. can thi...

this essay is only one page single spaced. The reading which this essay will be on is "The Debate Over Utilitarianism" by James Raches in Elements boo...

Business Law 7...

Your responses should be well-rounded and analytical, and should not just provide a conclusion or an opinion without explaining the reason for the cho...

Cause and Effect - MLA format essay...

Please read and understand it before you start!This paper Must be MLA format if you do not know how do not waste my time! Cause and Effect is about s...

Philosopy 103...

Week 3: Scientific ReasoningScience is one of the most successful endeavors of mankind. Through the power of reason and careful observation, humans ha...

Business Practices Unit 2...

Given the importance of individuals in determining business success, discuss any TWO of the following issues providing examples wherever possible. ...

literature review paper on (i need it by 7pm) Comp...

literature review paper on (i need it by 7pm)Comparison of the Adaptations for Water Balance between Camels (Camelus) and Dorcas Gazelle(Gazella dorca...

Urgent proposal paper...

Curriculum Proposal Paper ( 15 pages, + appendix) California (Los Angeles)Education Class Select a contemporary trend or issue that is having or you...

"A" PLUS PLAGIARISM FREE WORK...

 A textile manufacturer is closing its North Carolina plant and moving the production of its products to a developing nation in Southeast Asia. The p...

ANSWER THIS QUESTION...

Salary and Advancement Options Between Careers Purpose statement:To present facts on wages, advancement opportunities and cost for different careers...

BAM 411 Human resource management unit 1...

BAM 411 Human Resource Management Unit Exam 11. ________ plan training activities.a. Managersb. Training specialistsc. Corporate teachersd. Job analys...

homework 6...

Human Resource ManagementFlexible Benefits ProgramsMany organizations, both public and private, use flexible benefits programs to help attract and ret...

homework5...

Case Application“Growing Pains at Modern Office Supply” (pages 236-237 in the text).After reading the case annotated above, answer the following q...

BAM 411 Human Resoure management Final exam...

I have posted only the first 25 questions so that you can verify this is the homework that you need. Answer has all 100 questions. 1. ________ develo...

homework 4...

CostsCosts are a consideration of every organization and in economically difficult times many managers may want to cut the "training budget" to save c...

If you didn't find the right answer

Ask Your Questions, We'll notify you once someone answers it