outlay of $500 and will return $120 per year for the next seven years. Project B requires an initial outlay of $5‚000 and will return $1‚350 per year for the next five years. The required rate of return is 10%. What is the net present value of the project with the highest net present value? Which project should the firm
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------------------------------------------------- FINC5001 Capital Market and Corporate Finance ------------------------------------------------- Workshop 5 – Capital Budgeting II 1. Basic Concepts Review a) In applying Net Present Value‚ what factors do we include‚ and what factors do we ignore? Use cash flows not accounting income Ignore * sunk costs * financing costs Include * opportunity costs * side effects * working capital * taxation * inflation
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the greatest king of all time has been developed over centuries. The Arthurian legend has no known author’s that can claim the original Arthurian legend however it is stated that three authors helped shaped the Arthurian legend‚ such as Geoffrey of Monmouth‚ Chretien de Troyes and Sir Thomas Malory. These author’s work‚ specifically Sir Thomas Malory’s‚ have been the main sources for many authors that translate the legend from Middle English to modern English in the late nineteenth century and the
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Learning Log 2: Observe‚ Connect and Reflect on Your Learning PART III – Symmetry in Crystals The most striking examples of symmetry…are crystals. Herman Weyl Study Period Focus Image Question Your Observations Week 5 Image 5 What observations can you make about these octahedra of cubic cristobalite‚ another polymorph of quartz‚ ‘frozen’ in volcanic glass? (no more than 50 words) (2 marks) What is your personal favourite gemstone and what is its space group. (around 10 words) (2 marks)
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STRATEGIC MANAGEMENT SIM336 ASSIGNMENT 1 - TITLE: Strategic Analysis Issue Date: Due Date: 10th November 2014 Monday 16th January 2015 Learning outcomes: Strategic analysis of an organization(s). Synthesis of ideas or solutions relating to strategy issues Skills outcomes:Research skills Critical evaluation Creativity Communication Moderated by: John Dixon-Dawson All work submitted must adhere to the University Policy on ‘Cheating‚ Collusion and Plagiarism’ You must not submit an assignment
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SEVEN STEPS TO A NET IONIC EQUATION EXAMPLE: KCl(aq) + Pb(NO3)2(aq) ( 1. a. Take only one of the first cation(s) and match it with one of the second anion(s). (Write the cation first) b. Take only one of the second cation(s) and match it with one of the first anion(s). (Write the cation first) KCl(aq) + Pb(NO3)2(aq) ( KNO3 +PbCl 2. Correct the formulas of the products based on the charges of the ions. KCl(aq) + Pb(NO3)2(aq) ( KNO3 +PbCl2 ◄ 3. Balance the equation
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513 Interest Expenses 3‚587 3‚042 2‚324 1‚507 599 Interest * Tax rate 1255.45 1064.7 813.4 527.45 209.65 TV1999 = 10513 + (10513*1.02)/(10.56%-2% ) = $135.81 Million Vunlevered = Net present value of future operating cash flow = $ 110.9 million. The firm cost of debt: Rd = 9% + 1.5% = 10.5% V taxshield= Net present value of interest tax savings = $3 million Fair market value of the firm = 110.9+ 3 = $113.9 M Operating cash flow using management case projections: This case yields very high
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_______________ 1. What is the net present value of a project with the following cash flows if the discount rate is 14 percent? [pic] A. -$3‚140.43 B. -$929.90 C. $247.181 D. $1‚027.67 E. $1‚127.08 2. Timothy is considering an investment of $10‚000. This investment is supposedly going to provide him with cash inflows of $2‚500 in the first year and $6‚000 a year for the following 2 years. At a discount rate of zero percent this investment has a net present value (NPV) of _____
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Sport: Volleyball Skill: How to spike a volleyball Equipment: Volleyball and volleyball net Directions: 1. Stretch your arms and legs for 10-20 seconds each before starting. This will reduce your risk of pulling a muscle or injuring yourself. 2. Position yourself behind the 10-foot line (attack line)‚ which is the line that is about 4 feet away from the net. If you have long legs or take bigger steps‚ stand a little farther back. If you are left handed‚ you may want to spike on the right
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8. Year 0 Year 1 Year 2 Taxable income $9‚100 $10‚250 $15‚300 Marginal tax rate .30 .30 .30 Tax $2‚730 $3‚075 $4‚590 Revenue $13‚000 $16‚250 $23‚400 Expenses (4‚250) (8‚000) (8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875)
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