PROBLEM SET #1 SOLUTIONS 1. Let’ denote the payment to the manufacturer by x. The following cash ‡ s ows are created by the project: Selling the existing machine: its book value is $45; 000 5 $3; 000 = $30; 000. So selling the machine will produce a capital gain equal to $35; 000 $30; 000 = $5; 000‚ and the …rm will pay taxes on the capital gain so that the net cash in‡ ow is CF (selling existing machine) = $30; 000 + $5; 000(1 :35) = $33; 250: Cash ‡ increments over years 1-10‚ given by
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Week 4 Homework Solutions: Problem Set 4 1. Determining Profit or Loss from an Investment. Three years ago‚ you purchased 150 shares of IBM stock for $88 a share. Today‚ you sold your IBM stock for $103 a share. For this problem‚ ignore commissions that would be charged to buy and sell your IBM shares. a. What is the amount of profit you earned on each share of IBM stock? The profit on each share of IBM stock was $15. $103 priced when each share was sold‚ $88 priced when each
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This document MGT 401 Week 1 Discussion Question 2 Risk Control includes right solutions of the following questions: "What are the primary elements of each of the three types of risk control? Assume you are in a hazard hunt; list a few factors in your job that may contribute to a hazard and how likely is it that a hazardous situation will occur? Respond to at least two of your classmates Business - Management The Environment . Why is it deemed necessary to protect the environment? What does
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1. Title The Predictive Abilities of Financial Ratios in Predicting Listed Company Performance in Malaysia. 2. Objectives 1. To analyse the accuracy of financial ratios in predicting company performance. 2. To identify the effectiveness of financial ratios in predicting company performance. 3. To determine the impact of financial ratios in predicting company performance. 3. Hypothesis 1. To analyse the accuracy of financial ratios in predicting company performance. Ho: The financial ratios in predicting
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In this work MGT 415 Week 5 Final Paper you will find the overview of the following topic: "Group Dynamics and Interaction. Group Behavior in Organizations." Business - Management Focus of the Final Paper In Week One‚ you will choose a generic organization (manufacturing plant‚ hospital‚ etc.). Assume that you are a hired consultant for this organization. You have been asked by the president of the organization to prepare a background paper on the results of your research and to make recommendations
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This pack of FIN 370 Week 3 Discussion Questions consists of: 1. What could happen if an organization neglected to manage its working capital? What working capital techniques would you recommend for your organization? Why? 2. What is meant by capital planning or capital budgeting? Why is IRR important to an organization? Why is NPV important to a project? 3. Why would you choose to lease a capital item verses buy? Deadline: ( )‚ Business - General Business Does any one have the full tutorial
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future Value of 10‚000 for 30 years at 7% $76‚122.55 paying 10‚0000 enter it as a negative Develop Model inputs Quiz rate 7% 12% nper 30 6 pmt 0 -3500 pv -10000 0 output fv $76‚122.55 $28‚403.16 Quiz
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Week 4 Tutorial - Types of Business Associations Partnership Complexity The process of establishing a partnership is informal and inexpensive. Commonly established under a written contract but at times can be established simply without any express oral or written consent‚ so long as it satisfies the definition outlined in section 1.1 of the partnership act: “Partnership is the relation which exists between persons carrying on a business in common with a view of profit” Advantage(A) Enjoys
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Week 1 Assignment Armando Samia migosamia@yahoo.com 949 600 3240 Entrepreneurial Finance January 13‚ 2013 1.[Financing Concepts] The following ventures are at different stages in their life cycles. Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing. A. Phil Young‚ founder of Pedal Pushers‚ has an idea for a pedal replacement for children’s
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Caledonia Products Integrative Problem FIN370 Thomas Rindahl April 1st‚ 2013 1. Why should Caledonia focus on project free cash flows as opposed to the accounting profits earned by the project when analyzing whether to undertake the project? Caledonia should observe the free cash flows on the project instead of the accounting profits because free cash flows help show how well the project can pay back its initial investment. Of course it will also show the projected profit
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