over it ’s 6 year economic life. The new truck has a 5-year MACRS life and an estimated salvage value at the end of 6 years of $2‚000. If Maplewood has a 40 percent marginal tax rate and a cost of capital of 12 percent‚ what is the NPV of the new truck? Use the Depreciation schedule listed below: (5-Year depreciation Schedule: 20%‚ 32%‚ 19%‚ 12%‚ 12%‚ 5%) Answer: Year | 0 | 1 | 2 | 3 | 4 | 5 | 6 |
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European Journal of Marketing‚ 39 (9/10)‚ 1199–1215. ———‚ D. S. W. Schuppisser‚ and S. Belona (2002)‚ “A Stakeholder Perspective for Analysing Marketing Relationships‚” Journal of Market-Focused Management‚ 5 (2)‚ 109–126. Publicis Groupe (2005)‚ Vive la Différence: Publicis Groupe 2004 Annual Report. Ramanathan‚ Kavasseri V. (1976)‚ “Toward a Theory for Corporate Social Accounting‚” Accounting Review‚ 51 (3)‚ 516–529. Roberts‚ Robin W. (1992)‚ “Determinants of Corporate Social Responsibility Disclosure:
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Hospital is considering an expansion project that would utilize land previously purchased. By expanding into ambulatory surgical services‚ the hospital has the opportunity to increase revenues and capture market share in this area. Investigation in the NPV of the project and a scenario analysis reveal that the project would be profitable. Debt Financing This project will most likely involve debt financing. This means that interest expense would occur and should be taken into account in the analysis
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factors must be considered before accepting any project If the project is Technically Feasible‚ Commercially Viable‚ Financially viable. For evaluation of Financial Viability‚ we need to employ any of the following methods: 1. Net Present Value (NPV) 2. Internal Rate of Return (IRR) 3. Profitability Index (PI) Investment decisions are generally called capital budgeting decisions. One of the main important concepts in analyzing investment is the concept of time value of. The value of a present
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-100 +50 +50 +50 +50 +50 -300 +66 +66 +66 +66 +66 +66 +66 +66 +66 +66 Equivalent Annual Annuities (cont.) What is the NPV of remodeling your hotel? Equivalent Annual Annuities (cont.) What is the NPV of rebuilding your hotel? 50‚000 50‚000 50‚000 50‚000 50‚000 NPV= −100‚000 + + + + + 1.10 1.102 1.103 1.10 4 1.105 = 89‚550 What is the IRR of remodeling your hotel? NPV= −300‚000 + = 105‚570 66‚000 66‚000 66‚000 66‚000 + + + ...+ 1.10 1.10 2 1.103 1.1010 What is the IRR of rebuilding
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run the project or not. Six issues will be discussed as follows 1) importance of energy cost; 2) project’s cash flows; 3) cost of capital; 4) choose an engine 5) evaluation 6) accept or reject. We should accept the project because of the positive NPV and high IRR. We will gain $532 million in wealth which is a big money on the scale like this. The company has a bond rating of AA that makes the risk relatively low. So we should definitely say yes. Issues Importance of Energy Cost Road King Trucks
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is the NPV of the plant to manufacture? B. What is the NPV of the project at 10% higher than forecast‚ and what if the NPV was 10% lower? C. What is the NPV with all of the above‚ and how does the NPV change if the cost grows by 5% rather than 2%? The Bauer industries’‚ NPV from research was found to be 57.271771 for revenues and expenses. At 10% higher the companies NPV for revenue and expenses would be 93.99816. At 10% lower the NPV would be 20.54526. With the growth at 2% the NPV would
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After 3 years their sales reached $2.5 billion. There is no doubt that their sexist message is reaching millions of children around the world. I will now focus on how sexist messages are communicated through 3 of Disney’s princesses: Snow White‚ Ariel and Belle. Snow White’s only emphasized skills are her appearance and housekeeping skills. The evil queen hates her because she is "the fairest of them all"‚ and the only reason the hunter doesn’t kill her is because she is to pretty to kill. These
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Eastern University Banking on Argentina 1. What are the major factors that caused the peso to fall in value against the dollar? What has the government done to reverse the recession? Answer: Argentina was rated as one of the world’s 10 richest countries in the beginning of the twentieth century. But in 1980s inflation plagued the country and as a result Argentina lost trust in the peso and invested in U.S. dollars and shipping their capital abroad. To solve this carols Menem in 1989
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Hertz should be willing to pay for the fleet of cars with all-equity funding is the price that makes the NPV of the transaction equal to zero. NPV = -Purchase Price + PV[(1- TC )(Earnings Before Taxes and Depreciation)] + PV(Depreciation Tax Shield) Let P equal the purchase price of the fleet. NPV = -P + (1-0.34)($100‚000)A50.10 + (0.34)(P/5)A50.10 Set the NPV equal to zero. 0 = -P + (1-0.34)($100‚000)A50.10 + (0.34)(P/5)A50.10 P = $250‚191.93 + (P)(0.34/5)A50
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