$200‚ Sales tax is 10%‚ packing up and disposing of your old computer is $100‚ what is your initial out-of pocket outlay? A. 1300 B. 1320 C. 1380 D. 1400 E. 1420 F. 1430 Total cost of Computer & Monitor = $200 +$800 = $1000 Sales tax = 10% of Total cost of Computer & Monitor = $100 Other costs= delivery and installation + disposing old computer = $200 + $100 = $300 Initial out-of pocket outlay = $1000 +$100 + $300 =$1400 “Real” Costs & Benefits Training costs – Can be 0‚ when the
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‘Discounting’ Methods: Net Present Value (NPV): the present value of the future after-tax cash flow minus the investment outlay made initially. The decision rule for the NPV as follows: invest if NPV> 0‚ do not invest if NPV< 0 Internal Rate of Return (IRR): calculates the interest rate that equates the present value of the future after-tax cash flows equal that investment outlay; then compared to the required rate of return‚ or hurdle rate‚ to determine the viability of the capital projects. The
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Bahria University Islamabad Campus SOLVED/PINK PAPER Midterm Examination (Fall-2014) Department of Management Sciences Instructor Name: Ajab Khan Burki Program: MBA-3BCD Course: Corporate Finance Date: October 30‚ 2014. Time Allowed: 1-1/2 Hrs Max Marks: 25 Time: 05:30-07:00 PM Instructions: Attempt all questions. Formula sheet is NOT allowed. Q#01: Mr. Micheal John‚ an analyst with
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similarities will be identified. This report is to be submitted to Lara Jackson on the 19th October 2015 Education and registration: To become qualified as a social worker a post grade or honours in social work is required to. To obtain this at Glasgow Caledonia University
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can be achieved through dividend policy and increasing share price of the mark value. In order to derive more profits‚ our company shall invest potential investments which always cover a number of years. Those investments involve substantial initial outlay at the outset and the process. The management is responsible to participate in the process of planning‚ analyzing‚ evaluating‚ selecting and making decisions to allocate the limited resource to those investments. This is called capital budgeting
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military‚ decent resources and great influence on other countries. They allied with each other to create the Northern bloc. This bloc represents the three authoritative and forceful countries in Statecraft world. My country Republic of Civitas and Caledonia adopted the liberal’s theory to apply it within the country and outside it. Cortarro was completely a feminist country. They had women in power in order to make decision to lead the country toward the bright side and make their people satisfied.
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stage in the interview process for an Assistant Financial Analyst at Caledonia Products involves a test of your understanding of basic financial concepts. You are given the following memorandum and asked to respond to the questions. Whether or not you are offered a position at Caledonia will depend on the accuracy of your response. To: Applicants for the position of Financial Analyst From: Mr. V. Morrison‚ CEO‚ Caledonia Products Re: A test of your understanding of basic financial concepts
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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 Value / Initial Outlay. 3. Project Sigma requires an investment of $1 million and has a NPV of $10. Project Delta requires an investment of $500‚000 and has a NPV of
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years. The old machine will have an operating cash flow of ($179‚869.87) and last six years. He also needs to consider the initial outlay of purchasing the new Vulcan. The Vulcan will cost $1‚010‚000‚ but he can sell the old machines for $130‚000 and will recognize an after-tax credit for selling the old ones at a capital loss of $66‚703.75. This means the initial outlay will be ($886‚892.54) and be recognized in the beginning. The company’s hurdle rate is also out of date‚ so he must compute
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recover the initial cash outlay. Formulas Net Present Value = (t=1..n A * (1+r)-t OR (t=1..n A/ (1+r)t Where A = Cash flow r = Required rate of return t = year of cash flow n = the nth year Return On Investment = (Discounted Benefits – Discounted Costs) / Discounted Costs Payback Period = Years taken to repay initial outlay
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