Year 0
Year 1
Year 2
Year 3
Year 4
TOTAL
Project A
$ (200,000.00)
$...
Year 0
Year 1
Year 2
Year 3
Year 4
TOTAL
Project A
$ (200,000.00)
$ 25,000.00
$ 50,000.00
$ 75,000.00
$ 100,000.00
$ 250,000.00
Project B
$ (200,000.00)
$ 50,000.00
$ 75,000.00
$ 50,000.00
$ 75,000.00
$ 250,000.00
Project C
$ (200,000.00)
$ 75,000.00
$ 75,000.00
$ 50,000.00
$ 50,000.00
$ 250,000.00
1. You have $200,000 to invest in the above three projects with
corresponding cash flows. The discount rate is 8%. Of the three
projects, which, according to...
Year 0
Year 1
Year 2
Year 3
Year 4
Totals:
Project A
$ (200,000.00)
$...
Year 0
Year 1
Year 2
Year 3
Year 4
Totals:
Project A
$ (200,000.00)
$ 25,000.00
$ 50,000.00
$ 75,000.00
$ 100,000.00
$ 250,000.00
Project B
$ (200,000.00)
$ 50,000.00
$ 75,000.00
$ 50,000.00
$ 75,000.00
$ 250,000.00
Project C
$ (200,000.00)
$ 75,000.00
$ 75,000.00
$ 50,000.00
$ 50,000.00
$ 250,000.00
1. If I decide to borrow my 200K required investment at a rate
of 10%, which project would be the best option?
A. Project A
B. Project...
Year
Quarter
Sales ($000)
2015
1
$400
2015
2
2,000
2015
3
3,500
2015
4
260...
Year
Quarter
Sales ($000)
2015
1
$400
2015
2
2,000
2015
3
3,500
2015
4
260
2016
1
740
2016
2
2,720
2016
3
4,900
2016
4
520
2017
1
1,500
2017
2
3,100
2017
3
6,520
2017
4
960
2018
1
1,840
2018
2
4,040
2018
3
7,680
2018
4
1,640
2019
1
3,520
2019
2
5,640
2019
3
8,900
2019
4
3,620
Problem
2
House Depot’s quarterly sales of a lawn, landscaping, and
gardening items – like lawnmowers,...
YEARS
0
1
2
3
4
5
6
New Plant Costs
(24,000,000)
Land
(4,300,000)
Inventory
(1,000,000)...
YEARS
0
1
2
3
4
5
6
New Plant Costs
(24,000,000)
Land
(4,300,000)
Inventory
(1,000,000)
Sales
63,000,000
63,000,000
63,000,000
63,000,000
63,000,000
63,000,000
Costs
(20,000,000)
(20,000,000)
(20,000,000)
(20,000,000)
(20,000,000)
(20,000,000)
Depreciation Expense
(3,429,600)
(5,877,600)
(4,197,600)
(2,997,600)
(2,143,200)
(2,140,800)
Profit Before Tax
39,570,400
37,122,400
38,802,400
40,002,400
40,856,800
40,859,200
40% Tax Rate
(15,828,160)
(14,848,960)
(15,520,960)
(16,000,960)
(16,342,720)
(16,343,680)
Profit After Taxes
23,742,240
22,273,440
23,281,440
24,001,440
24,514,080...
YEAR
PROFITS AFTER TAXES
1
$17,000,000
2
20,000,000
3
18,000,000
4
22,000,000
5
24,000,000
Dividend
policies)...
YEAR
PROFITS AFTER TAXES
1
$17,000,000
2
20,000,000
3
18,000,000
4
22,000,000
5
24,000,000
Dividend
policies)
Final earnings estimates for Chilean Health Spa & Fitness
Center have been prepared for the CFO of the company and are shown
in the following table:
. The firm has
7,600,000
shares of common stock outstanding. As assistant to the CFO,
you are asked to determine the yearly dividend per share to be paid
depending on the following possible policies:a. A
stable dollar dividend...
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000...
Year
Investment A
Investment B
0
-$5,000,000
-5,000,000
1
$1,500,000
$1,250,000
2
$1,500,000
$1,250,000
3
$1,500,000
$1,250,000
4
$1,500,000
$1,250,000
5
$1,500,000
$1,250,000
6
$1,500,000
$1,250,000
7
$2,000,000
$1,250,000
8
0
$1,600,000
You have been hired as a consultant for Pristine Urban-Tech
Zither, Inc. (PUTZ), manufacturers of fine zithers. The market for
zithers is growing quickly. The company bought some land three
years ago for $2.1 million in anticipation of using it as a toxic
waste dump site but has...