Two mutually exclusive investment projects have the following forecasted cash flow: Year A B0 $-20,000 $-20,0001 10,000 02 10,000 03 10,000 04 10,000 60,000 a) Calculate internal rate of return for each project. b) Calculate net present value for each…
A machine has a first cost of $100,000 (in today’s dollars) and a salvage value of $40000 (in current dollars) at the end of a five-year life. The machine will provide after tax cash flow of $30,000 (in current dollars)…
1. Problem-solving: Use the following data from a firm’s pro forma (i.e., projected or forecasted) financial statements to calculate the following profitability ratios for the firm, assuming that all stocks are common stocks: (a) net profit margin; (b) return on…
suppose sam.com sell 3500 books on account for $11 each (cost these book is $16500) on october 10, 2012. One hundrendd of these books (cost $660) were damaged in shipment, so muddyriver.com later received the damaged goods as sales return…
On November 1, 2012 James Deanne moved from Saskatchewan to Nova Scotia. He traveled 2,300 km by car for 4 days in order to move. He used a rented storage van to move his belongings which cost him $800.00. He…
Suppose that new entry decreased your demand elasticity from – 2 to -3 (made demand more elastic). By how much should you adjust your price of $10? Use (P-MC)/P = 1/ l e l to calculate MC and then use…
Foot Locker, Inc., reported an $18 million loss on sales of $1,283 million for the quarter ended August 4, 2007. The quarterly financial filling (10-Q) also contained this warning for investors and creditors. Source: Foot Locker Inc. Form 10-Q for…
A project has numerous activities. These activities are given in the table below, together with time estimates (in weeks) and crashing costs information: Activity Normal Time Normal Cost Crash Time Crash Cost Immediate PredecessorsA 2 $50 1 $70 —B 4…
Best Client Company has sales of 1,300 units at $60 a nit. Variable expense are 45% of the selling price and total fixed expenses are $37,180. If Cartel Company expects net year’s total sales could increase 14%, they want to…
In this problem, we are going to calculate the money multiplier one year prior to the Great Recession (12/2006) and compare it to the money multiplier five years hence (12/2011). The implication, as you may have guessed, is that since…
