Brawn Industries is considering an investment project that has the following cash flows:

YEAR        CASH FLOW
   0                -1,000
   1                    400
   2    300
   3                    500
   4    400

The company's WACC is 10%.
What is the projects regular payback, IRR, and NPV? (You must show your work)

Group of answer choices

Cornerstone Exercise 16.4 (Algorithmic)
After-Tax Profit Targets

Olivian Company wants to earn $420,000 in net (after-tax) income next year. Its product is priced at $250 per unit. Product costs include:

Variable selling expense is $10 per unit; fixed selling and administrative expense totals $275,000. Olivian has a tax rate of 40 percent.

Required:

1. Calculate the before-tax profit needed to achieve an after-tax target of $420,000.
$

2. Calculate the number of units that will yield operating income calculated in Requirement 1 above. If required, round your answer to the nearest whole unit.
  units

3. Prepare an income statement for Olivian Company for the coming year based on the number of units computed in Requirement 2. Do NOT round interim calculations and, if required, round your answer to the nearest dollar.

4. What if Olivian had a 35 percent tax rate? Would the units sold to reach a $420,000 target net income be higher or lower than the units calculated in Requirement 2?
- Select your answer -HigherLowerCorrect 1 of Item 3

Calculate the number of units needed at the new tax rate. In your calculations, round before-tax income to the nearest dollar. Round your answer to the nearest whole unit.
  units

1.5 page essay for comparative success - (market, sales, profits) Yahoo Vs Google

Consider Project Kohrman which has the following cash flows: Year Cash Flow 0 -$500,000 1 $80,000 2 $120,000 3 $200,000 4 $200,000 5 $250,000 The required return on Project Kohrman is 10%. What is the project’s NPV? Discounted payback? IRR? Payback period?

Your company has an opportunity to invest in a project that is expected to result in after-tax cash flows of $20,000 the first year, $22,000 the second year, $25,000 the third year, -$8,000 the fourth year, $32,000 the fifth year, $38,000 the sixth year, $41,000 the seventh year, and -$6,000 the eighth year. The project would cost the firm $90,200. If the firm's cost of capital is 17%, what is the modified internal rate of return?

Question 29 options:

Costs of Different Customer Classes

Kaune Food Products Company manufactures canned mixed nuts with an average manufacturing cost of $50 per case (a case contains 24 cans of nuts). Kaune sold 159,000 cases last year to the following three classes of customer:

    The supermarkets require special labeling on each can costing $0.03 per can. They order through electronic data interchange (EDI), which costs Kaune about $57,000 annually in operating expenses and depreciation. Kaune delivers the nuts to the stores and stocks them on the shelves. This distribution costs $43,000 per year.

    The small grocers order in smaller lots that require special picking and packing in the factory; the special handling adds $20 to the cost of each case sold. Sales commissions to the independent jobbers who sell Kaune products to the grocers average 6 percent of sales. Bad debts expense amounts to 7 percent of sales.

    Convenience stores also require special handling that costs $27 per case. In addition, Kaune is required to co-pay advertising costs with the convenience stores at a cost of $15,000 per year. Frequent stops are made to each convenience store by Kaune delivery trucks at a cost of $24,000 per year.

Required:

1. Calculate the total cost per case for each of the three customer classes. Round intermediate calculations and final answers to four decimal places. Use the rounded values for subsequent requirements.

2. Using the costs from Requirement 1, calculate the profit per case per customer class. Round intermediate computations to four decimal places and final answers to two decimal places.

Does the cost analysis support the charging of different prices?

3. What if Kaune charged the average price per case to all customer classes? How would that affect the profit percentages?

One popular method of acquiring commercial is through a lease. What are the pros and cons of leasing a commercial property as a means of acquiring ownership and/or a means of controlling the property?

1. Consider the following two banks:

• Bank 1 has assets composed solely of a 8-year, 12 percent coupon, $1 million loan with a 12 percent yield to maturity. It is financed with a 8-year, 10 percent coupon, $900,000 face value CD with a 8 percent yield to maturity.
• Bank 2 has assets composed solely of a 10-year, 12 percent, zero-coupon bond with a maturity value of $2,800,000. It is financed with a 9-year, 8.3 percent coupon, $1,000,000 face value CD with a yield to maturity of 10 percent.

All securities except the zero-coupon bond pay interest annually.

1. What are the durations of the assets and liabilities of each bank?

2. What are the expected changes in net value of each bank based on durations for a 5% decrease in interest rate in assets and 4% decrease in interest rate in liabilities?

In preparation for Thanksgiving, a Finance professor goes to Wegman’s and buys a 20-lb Fresh Young Turkey for $53.80. If the long-term average of US inflation rate is 2% per year, how much did her senior neighbor pay for a 18-lb turkey 20 years ago?

The professor hears that specialized turkey is the mainstream now. She likes the idea of giving up some quantity for better quality since she usually does not like the leftover. She is curious if her budget is the same, how small of a bird she could afford if she buys free-range turkey at $4.49/ lb (please round the number)?

She now wants to compare free-range turkey of that size with organic turkey of the same size, which is selling at $6.24/ lb and calculate how much extra would she have to pay? If that once-per-year extra spending could otherwise be put into a stock trading account that earns 8% per year, compounded quarterly, how much could have otherwise accumulated after 20 Thanksgivings if she does not go for organic turkey?

(This one requires both converting APR to EAR and a saving annuity at EAR).

You have been asked to forecast the additional funds needed (AFN) for Houston, Hargrove, & Worthington (HHW), which is planning its operation for the coming year. The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 55%, which the firm's investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions. Last year's sales = S0 $300.0 Last year's accounts payable $50.0 Sales growth rate = g 40% Last year's notes payable $15.0 Last year's total assets = A0* $500 Last year's accruals $20.0 Last year's profit margin = PM 20.0% Initial payout ratio 10.0%

Analyze why, despite employing various investment appraisal techniques, large investment projects in big corporations may fail to deliver their estimated cash flows. Critically assess how a failed capital project may affect key stakeholders and shareholder value, and also shape the future strategy of investment capital.

Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

Critically analyze the merits and demerits of the Capital Asset Pricing Model (CAPM) and discuss its value in practice.