You must evaluate two mutually exclusive projects using the replacement chain method. You are asked to determine which machine is the better project, and how much the firm’s value will increase as a result of undertaking the better project.
Evaluate the new milling machine project given its purchase cost, increase in net operating working capital, pretax labor cost savings, and the fact that the firm spent money on investigating the feasibility of using the machine.
Determine the initial investment outlay for the spectrometer for part a., the annual cash flows for years 1,2, and 3, and finally the NPV of the spectrometer.
Determine the depreciation expense for straight-line and the bonus depreciation methods and determine the additional NPV gained from the preferred approach.
Determine which system should be chosen assuming that both projects cant be repeated indefinitely based on the equivalent annual annuity (EAA) method.
Determine the project’s operating cash flow for the first year, given the fact that the asset was fully depreciated at the time of the purchase. For part b, analyze the impact on OCF given cannibalization.
Given probability distributions for two stocks A and B, you are asked to calculate the expected rate of return, standard deviation, and coefficient of variation.
Determine the nominal yield to maturity, nominal yield to maturity, current yield and expected capital gains yield for the coming year. Finally, determine whether the bond is expected to be called.
First, you’re asked to select terms in dropdown menus in a large paragraph pertaining to Federal income taxes. Then they ask you to calculate a person(s) taxes owed and also to calculate taxes owed by a corporation.
Select the appropriate terms from dropdown menus given multiple paragraphs pertaining to market value added and economic value added. Finally, compute EVA and MVA for Rosnan Industries for the quantitative problem.