1 )Refer to the homework --choice between Current rent a machine/Purchase a machine/Purchase a new machine Tea company rent a bottling machine for 50‚000 per year‚ including all the maintaining cost. It is considering to purchase a machine instead. A. Purchase the machine it is currently costing for 150‚000. The machine will require 21‚000 per year for maintain. B. Purchase a new more advanced machine for 260‚000. The machine will require 15‚000 per year for ongoing maintain. And will save the
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Valuation- “projected financial performance into values.” Involves projecting/ making budgets. Value of an Asset = Value of Cash Flow (CF) it Will Generate (not profits) CF=1/(1+r)^1 value is based on three things- Current Cash Flow‚ Expected growth (used with to estimate future cash flow)‚ Riskiness of expected future cash flow (discount rate).Net Present Value- Value CFs using project discount rate based on risk Investment Decision-which real assets the firm should acquire.Choose positive and
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questions of corporate finance? a. Investment decision (capital budgeting): What long-term investment strategy should a firm adopt? b. Financing decision (capital structure): How much cash must be raised for the required investments? c. Short-term finance decision (working capital): How much short-term cash flow does company need to pay its bills. ( Describe capital structure. Capital structure is the mix of different securities used to finance a firm’s investments
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CORPORATE FINANCE – CONCEPT QUESTIONS Class Notes - Introduction to Corporate Finance 1. Finance point of view: Corporation: a money processing machine? * Product markets: everything what corporates make (lead with customers‚ suppliers‚ labor) * Capital markets: generic term for the entities which supply cash to this money processing machine‚ and the processing machine uses the money to do things and then periodic sends money back to the capital market there are inflows from the
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THE UNIVERSITY OF NEW SOUTH WALES SCHOOL OF CHEMICAL ENGINEERING FOOD2320 Food Microbiology FOOD2627 Food Microbiology Final Examination November 2013 Time allowed: THREE (3) hours Total number of questions: THREE (3) Answer all three questions Total marks: 60 All questions are of equal value (20 marks) This exam will contribute 40% to the final mark for the subject This paper may be retained by the candidate Answers must be written in ink. Except where they are expressly required
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MGT100. INTRODUCTION TO BUSINESS (MGT100) > EXAMS > REVIEW ASSESSMENT: FINAL EXAM Review Assessment: Final Exam Name Final Exam Status Completed Score 80 out of 100 points Instructions This exam consists of 100 equally weighed questions. Always pick the single best answer. Questions that are skipped or are submitted with multiple answers will be scored as incorrect. Question 1 1 out of 1 points __________ are able to deliver a steady flow of product‚ unaffected by the weather
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answer questions (each question is worth 10p) in this exam. Total Exam: 40p 1. In organisations‚ the content of an email sent from the workplace belongs to? a. Sender b. Receiver c. Employer d. Employer and sender 2. A private computer network that services the internal needs of an organisation is called a. internet. b. intranet. c. mainframe. d. FTP. 3. Extranets are used by organisations to support their a. corporate communication. b. external communication. c. business-to-business
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Solution to Case 23 Evaluating Project Risk It’s Better to Be Safe Than Sorry! Questions: 1. What seems to be wrong with the way the NPV of each project has been calculated? Indicate without any calculations‚ how Pete and John should go about recalculating the projects’ NPVs. The NPV of each project has been calculated by discounting the cash flows at the 8% before-tax cost of debt. This is incorrect. Since the company has debt‚ preferred stock and common
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be used as the required return when analyzing a potential acquisition of a retail outlet. C. is the return investors require on the total assets of the firm. D. remains constant when the debt-equity ratio changes. E. is unaffected by changes in corporate tax rates. 7. Which one of the following is the
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FIN 370 Final Exam Answers – Updated 2014-15 Thank you for using ACCNERD.com. We love helping you earn better grades! 1. Which of the following is true regarding Investment Banks? As of 2010‚ stand alone Investment banks are numerous. 2. We compute the profitability index of a capital-budgeting proposal by Initial outlay = $1‚748.80 dividing the present value of the annual after-tax cash flows by the cost of the project. Explanation: The profitability index is calculated as Net Present
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