Finance Question: Calculate the relevant cash flows
Finance
Question:
Calculate the relevant cash flows (for each year) for the following capital budgeting proposal. Enter the total net cash flows for each year in the box below according to the provided format. $90,000 initial cost for machinery; depreciated straight-line over 4 years to a book value of $10,000; 35% marginal tax rate; $55,000 additional annual revenues; $25,000 additional annual cash expense; annual expense for debt financing is $7,500. $3,500 previously spent for engineering study; The project requires inventory increase by $32,000 and accounts payable increase by $14,000 at the beginning of the project; The investment in working capital occurs one time at the beginning of the project and it requires working capital return to the original level when the project ends in 4 years; 11% cost of capital; life of the project is 4 years; and The new equipment will be sold at the end of 4 years; expected market value of the new equipment at the end of 4 years is $15,000; *For full credit please copy and paste any Excel tables you used to arrive at your answer. Clearly label each year’s cash flow (“Year 0 CF = ____, Year 1 CF = ____, Year 2 CF = ____, Year 3 CF = ____, Year 4 CF = ___”) at the top of the answer box. Please format your final answer to the nearest $,X. Paste all Excel tables and work below the final answers. HTML EditorKeyboard Shortcuts
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Finance
Question:
Please answer these questions in the next 30 MINUTES. Thank you! Question 3.3. What is the yield to maturity for a bond with an annual coupon of 10% that has 8 ears until maturity and sells for $1,000? 8% 9.4% 10% 12.5% Question 4.4. What is the yield to maturity of a bond with the following characteristics? Coupon rate is 8% with quarterly payments, current price is $940, 6 years until maturity. 4.78% 2.33% 9.32% 4.67% 3.48% Question 5.5. What is the coupon rate for a bond with 3 years until maturity, a price of $1,053.46, and a yield to maturity of 6%? 6% 8% 10% 11%
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Accounting
Question:
Two Sisters Catering uses the high-low method to predict its total overhead costs. Past records show that total overhead cost was $25,300 when 840 hours were worked and $27,500 when 940 hours were worked. If Two Sisters Catering has 865 hours scheduled for next month, what is the expected total overhead cost for next month?
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Finance
Question:
Please answer these questions in the next 30 MINUTES. Thank you! Question 10.10. If next year’s dividend is forecast to be $12.00, the constant-growth rate is 4.5%, and the discount rate is 12%, then the current stock price should be: 160 167.2 184.55 127.41 192.52 Question 11.11. What constant-growth rate in dividends is expected for a stock valued at $50.00 if next year’s dividend is forecast at $2.00 and the appropriate discount rate is 13%? 8% 7.25% 9.75% 11.38% 9% Question 12.12. What would be the approximate expected price of a stock when dividends are expected to grow at a 25% rate for 3 years, then grow at a constant rate of 5%, if the stock’s required return is 13% and next year’s dividend will be $4.00? 61.60 62.08 68.62 79.44 Question 13.13. Company A is expected to grow at 8% for the first 4 years and then grow at 3% constantly afterwards. What is the expected price of the stock of Company A if the Cost of capital is 6% and next years dividend is $2.65? 109.08 101.07 105.48 98.41 101.88 Question 7.7. What is the amount of the annual coupon payment for a bond that has 6 years until maturity, sells for $1,050, and has a yield to maturity of 10.5%? $116.65 $93.70 $110.24 $105.00 $121.73 Question 8.8. What happens to the price of a 3-year bond (with par value $1,000) with an 8% coupon when interest rates change from 4 to 7%? A price increase of $85 A price decrease of $85 A price increase of $90.47 A price decrease of $90.47
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Economics
Question:
Question 1: Mars and Hershey’s dominate the domestic chocolate candy bar business. In this mature market, advertising by individual firms does little to convince more people to eat candy. Effective advertising simply steals sales from rivals. Big profit gains could be had if these rivals could simply agree to stop advertising. Assume Mars and Hershey’s are trying to set optimal advertising strategies. Mars can choose either row in the payoff matrix defined below, whereas Hershey’s can choose either column. The first number in each cell is Mars payoff; the second number is the payoff to Hershey’s. This is a one-shot, simultaneous-move game and the first number in each cell is the profit payoff to Mars. The second number is the profit payoff to Hershey’s. Hershey Competitive stagey advertise Don’t advertise Mars advertise $500 melon ,$500 million $1 billion $ 300 million Don’t Advertise $300 million $1 billion $800 million ,$800 million Briefly describe the Nash equilibrium concept. Is there a Nash equilibrium strategy for each firm? If so, what is it?
