Homework Answers
Descartes rule states that the number of times the sign of cash flow series changes is the number of real rate of returns that can make PW of the cash flow series equal to zero.
In the case of given cash flow series, the signs of series changes three times.
It starts from -$3,000 and becomes +$2,000 then again +$2,000 and then changes to -$1,500 and then changes back to +$2,000.
So, it goes from '-' to '+' and then from '+' to '-' and then from '-' to '+'
Thus, sign changes three times.
Therefore, at most, 3 real rate of returns can make PW of the project zero.
Hence, the correct answer is the option (3).
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Please answer b,c and d
I already solve a
please answer fast.
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please can you solve
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Can) ou are in the process of purchasing a new automobile that will cost you $27,500....
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19 ats To solve the bid price problem presented in the text, we set the project NPV equal to zero and found the required price using the definition of OCF. Thus the bid price represents a financial break-even level for the project. This type of analysis can be extended to many other types of problems. Martin Enterprises needs someone to supply it with 131,000 cartons of machine screws per year to support its manufacturing needs over the next five years,...
Please solve these two finance questions
ns and Problems Calculating Project NPV Flatte Restaurant is considering the purchase of a $7.500 soume maker. The souflé maker has an economic life of five years and will be fully 1. depreciated by the straight-line method. The machine will produce 1,300 soufflés per year, with each costing $2.15 to make and priced at $5.25. Assume that the discount rate is 14 percent and the tax rate is 34 percent. Should the company make...
Don't need explanations, just comparing my answers. Thank
you.
Suppose Green Caterpillar Garden Supplies Inc. is evaluating a proposed capital budgeting project (project Alpha) that will require an initial investment of $450,000. The project is expected to generate the following net cash flows: Year Cash Flow Year 1 $375,000 Year 2 $425,000 Year 3 $400,000 Year 4 $450,000 Green Caterpillar Garden Supplies Inc.'s weighted average cost of capital is 10%, and project Alpha has the same risk as the firm's...
PLEASE ANSWER ALL QUESTIONS C-D
(Related to Checkpoint 121) Calculating project cash flows and NPV) You are considering expanding your product line that currently consists of skateboards to include gas powered skateboards, and you feel you can sell 8.000 of these per year for 10 years after which time this project is expected to shut down with solar powered skateboards taking over). The gas skateboards would sell for $110 each with variable costs of $35 for each one produced, and...
b) (3+1+3) You are considering a new investment project, which lasts for three years. The project requires a purchase of a new machine, which costs $300,000. This initial investment can be depreciated to zero over the next three years according to a straight line depreciation rule. The machine has no salvage value at the end. Operating revenue is projected to be $200,000 per year. Operating costs for raw materials are $50,000 The corporate tax rate is 30% and the risk-adjusted...
1. You are contributing money to an investment account so that you can purchase a house in five years. You plan to contribute six payments of $3,000 a year. The first payment will be made today and the final payment will be made five years from now. If you earn 11 percent in your investment account, how much money will you have in the account five years from now? Erika just put $10,000 into a new savings account, and she...
Please answer b,c and d
I already solve a
please answer fast.
FIN 203-2199-86083 Rigene Lumaj 11/7/1993 Homework: FL 7 Score: 1.8 of 2 pts 3 of 5 (5 complete) HW Score: 98%, 9.8 a P10-21 (similar to) Question Hels All techniques, conflicting rankinge Nicholson Roofing Materials, Inc., is considering two mutually exclusive projects, each with an initial investment of $110,000. The company's board of directors has set a payback requirement and has set its cost of capital at 9%....
please can you solve
the intersal rate of return fer the following project 5500 535,000 496% b-6.91% 08.56% d-11% e-11 318 14- Simple Question for All: It you have deposited $1,000 and you are promised to get $10,000 at the end of the next year. Then the interest rate of this deal is a-0.09% 1S- What is the simple payback peried of the following investment? End Of Year b-0.9% С. 9% d-90% e-900% Cash Flew $16,000 $3,000 以2.000 $4,000 2-5...
Can) ou are in the process of purchasing a new automobile that will cost you $27,500. The dealership is offering you either a $2,500 rebate (applied toward the purchase price) or financing at a 0.9% APR for 48 months (with payments made at the end of the month) and no rebate. You have been pre-approved for an auto loan through your local credit union at an interest rate of 5.5% APR for 48 months. If you take the $2,500 rebate...
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