It is January 1 2020 and you have recently started a new company, Green- Drone, that produces flying drones for garden maintenance. You are still at the product development stage but would like to evaluate the financial feasibility of the project. Here are some information about the company:

• - R&D expenditures. In order to develop the drones, you need to hire an engineer for 5 years at an annual salary of $96,000. The salary is paid monthly at the end of the month in equal amounts, i.e. 96,000/12 per month for the first year. To stay competitive, you expect you will have to grow the annual salary at a rate of 3%, starting the next year. The engineer contract starts today, i.e., on January 1 2020.

• - Production cost. Once the product is developed in 5 years (Jan- uary 1 2025), you will start the production of your drones. Each product is expected to cost $265 to produce. The cost is to be paid to the supplier at the beginning of a month.

• - Pricing and sales. You plan to sell the drones for $325 a unit over the next three years, i.e., until January 1 2028. All sales for products produced in a month are collected at the end of the month.

  The appropriate discount rate r is 5%, annually compounded. Denoting the quantity of drones sold in a month by Q. How many drones do you need to sell per month to make this project profitable (i.e., generate a positive NPV)?

The Lesseig Company has an opportunity to invest in one of two mutually exclusive machines that will produce a product the company will need for the next eight years. Machine A costs $8.5 million but will provide after-tax inflows of $4.8 million per year for 4 years. If Machine A were replaced, its cost would be $10.5 million due to inflation and its cash inflows would increase to $4.9 million due to production efficiencies. Machine B costs $14.9 million and will provide after-tax inflows of $4.2 million per year for 8 years. If the WACC is 12%, which machine should be acquired? Explain. Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answers to two decimal places.

Machine (A) OR (B)  is the better project and will increase the company's value by $_____ millions, rather than the $____ millions created by Machine (A) OR (B)

A mining company is deciding whether to open a strip mine, which costs $2.5 million. Cash inflows of $14 million would occur at the end of Year 1. The land must be returned to its natural state at a cost of $12 million, payable at the end of Year 2.

1. Should the project be accepted if WACC = 10%?
2. Should the project be accepted if WACC = 20%?
3. What is the project's MIRR at WACC = 10%? Round your answer to two decimal places. Do not round your intermediate calculations.
4. What is the project's MIRR at WACC = 20%? Round your answer to two decimal places. Do not round your intermediate calculations.
5. Does MIRR lead to the same accept/reject decision for this project as the NPV method?
6. Does the MIRR method always lead to the same accept/reject decision as NPV? (Hint: Consider mutually exclusive projects that differ in size.)

This is all one question, any information will help, thank you in advance!

You own a 15​-year, ​$1,000 par value bond paying 7.5 percent interest annually. The market price of the bond is ​$775​, and your required rate of return is 12 percent.

a. Compute the​ bond's expected rate of return.

b. Determine the value of the bond to​ you, given your required rate of return.

c. Should you sell the bond or continue to own​ it?

St. Johns River Shipyards' welding machine is 15 years old, fully depreciated, and has no salvage value. However, even though it is old, it is still functional as originally designed and can be used for quite a while longer. The new welder will cost $184,500 and have an estimated life of 8 years with no salvage value. The new welder will be much more efficient, however, and this enhanced efficiency will increase earnings before depreciation from $29,000 to $69,000 per year. The new machine will be depreciated over its 5-year MACRS recovery period, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The applicable corporate tax rate is 40%, and the project cost of capital is 11%. Should the old welder be replaced by the new one? Do not round intermediate calculations. Round your answer to the nearest cent. Negative value, if any, should be indicated by a minus sign. The NPV of the project is $ Old welder be replaced.

A pension fund manager is considering the following three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.2%. The probability distribution of the risky funds are:

The correlation between the fund returns is .0222.

Suppose now that your portfolio must yield a return of 12% and be efficient, that is, on the best feasible CAL.

a. What is the standard deviation of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-1. What is the proportion invested in the T-bill fund? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b-2. What is the proportion invested in each of the two risky funds? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

You own a 10-year, $1,000 par value bond paying 8 percent interest annually. The market price of the bond is $850 and your required rate of return is 12 percent.

a. Compute the​ bond's expected rate of return.

b. Determine the value of the bond to​ you, given your required rate of return.

c. Should you sell the bond or continue to own​ it?

The manager of Walmart’s in Arkansas is considering the possibility of providing flower delivery service. She hires you as consultant for this project. You suggested that Walmart should do some marketing research to understand the market needs. Walmart has conducted a survey. The major findings include:  The estimated number of customers is 400.  An average customer is willing to buy $30 worth of flowers per order and pay $5 for delivery.  An average customer tends to place 10 flower orders per year. To ensure on-time delivery Walmart’s needs to invest $30,000 on a new van, which will be straight line depreciated over 10 years with $0 salvage value. The expenses of gas, repair, maintenance, and other operating costs incurred by this van will be $2,000 a year. Staff compensation will cost $50,000 a year. Advertising, promotion and other sales expenses will cost $10,000 a year. The average variable cost of flowers is 60% of the flower sales. There is no variable cost assigned to delivery. (4) Please answer the following questions 1. What is unit contribution (per customer per year)? 2. What is BEV in each year?

18. Comparing Investment Criteria Consider the following cash flows of two mutually exclusive projects for A-Z Motorcars. Assume the discount rate for both projects is 10 percent.

1. page 225Based on the payback period, which project should be taken?

2. Based on the NPV, which project should be taken?

3. Based on the IRR, which project should be taken?

4. Based on the above analysis, is incremental IRR analysis necessary? If yes, please conduct the analysis.

Please give me the excel formulas for these so i can study them

I don't need calculations just the formula and the name of it. maybe a brief sentence.

an investment pays 7710.02 (F51)

at the end of every year for 39 years (F52)

interest rate is 13.17% (F53)

what is this investment worth today?

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you hope to earn a "ly" (yearly?) income of 701.38 (F59)

interest rate you will earn on yor investments is 14.39% (F60)

You expect to live for 21 years (F61)

How much should you have invested at the beginning of retirement so you achieve your target income and it lasts as long as you live?

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You want to know the price of a security

the security makes payments of $887,422.24 (F67)

Once every year for 46 years (F68)

Interest rate is 11.43% (F69)

how much should the security cost?

Thanks so much. I'll upvote

Produce a well-labeled Line chart that illustrates the difference in obtaining fixed annual compound interest rates of 5%, 10%, and 15% on an investment of $100,000 over the course of 10 years. Your chart should show three curves: the value of the investment growing at 5% per year, 10% per year, and 15% per year.

*Must complete in excel

Market Value Capital Structure

Suppose the Schoof Company has this book value balance sheet:

The notes payable are to banks, and the interest rate on this debt is 11%, the same as the rate on new bank loans. These bank loans are not used for seasonal financing but instead are part of the company's permanent capital structure. The long-term debt consists of 30,000 bonds, each with a par value of $1,000, an annual coupon interest rate of 8%, and a 15-year maturity. The going rate of interest on new long-term debt, r_d, is 12%, and this is the present yield to maturity on the bonds. The common stock sells at a price of $70 per share. Calculate the firm's market value capital structure. Do not round intermediate calculations. Round the monetary values to the nearest dollar and percentage values to two decimal places.

HW 12, Problem 1, parts a and b

1. You are considering an investment in two projects, A and B. Birth projects will cost $115,000, and the projected cash flows are as follows:

1. Assuming that the WACC is 9.4%, calculate the payback period, discounted payback period, NPV, PI, IRR and MIRR. If the projects are mutually exclusive, which project should be selected?
2. Create an NPV profile chart for projects A and What is the exact crossover rate for these two projects?