Last year Miami Rivet had $5 million in operating income (EBIT). Its depreciation expense was $1 million, its interest expense was $1 million, and its corporate tax rate was 25%. At year-end, it had $14 million in operating current assets, $3 million in accounts payable, $1 million in accruals, $2 million in notes payable, and $15 million in net plant and equipment. Assume Miami Rivet has no excess cash. Miami Rivet uses only debt and common equity to fund its operations. (In other words, Miami Rivet has no preferred stock on its balance sheet.) Miami Rivet had no other current liabilities. Assume that Miami Rivet only noncash item was depreciation. Miami Rivet has 500,000 common shares outstanding, and the common stock amount on the balance sheet is $5 million. The company has not issued or repurchased common stock during the year. Last year’s balance in retained earnings was $11.2 million, and the firm paid out dividends of $1.8 million during the year. If the firm’s stock price at year-end is $52, what is the firm’s market value added (MVA)? If the firm’s after-tax percentage cost of capital is 9%, what is the firm’s Long-term debt at year-end? If the firm’s after-tax percentage cost of capital is 9%, what is the firm’s EVA at year-end?

I only need question about EVA Answered please!!! THank you!!!

1. Consider a bond that pays annually an 8% coupon with 20 years to maturity. The percentage change in the price of the bond if its yield to maturity increases from 5% to 7% is closest to? Set your decimal places to 4 in your financial calculator.

   a		19.50%
   b		24.22%
   c		-24.22%
   d		-19.50%

Please, I need it with 40 minutes if you can post it. thanks

Machine A costs $37,000 to purchase and is worth $8,000 in 5 years at the end of its service life. Machine B costs $20,000 to purchase and is worth $1,000 in 4 years at the end of its service life. Assume that these machines are needed for 20 years (required service period). Each machine can be repurchased at the same price in the future, and assume the annual maintenance cost of each machine is negligible. Use 8% annual interest rate. What is the Present Total Cost of the machine that should be purchased? Enter your answer as a positive number."

Edelman Engineering is considering including two pieces of equipment, a truck and an overhead pulley system, in this year’s capital budget. The projects are independent. The cash outlay for the truck is $17,100 and that for the pulley system is $22,430. The firm’s cost of capital is 14%. After-tax cash flows, including depreciation, are as follows:

Year                Truck                 Pulley

1                      $5,100                        $7,500

2                      5,100                          7,500

3                      5,100                          7,500

4                      5,100                          7,500

5                      5,100                          7,500

Calculate the IRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.

Truck: ?? %

What is the correct accept/reject decision for this project?

Based on the IRR, this project should be [Accepted, Reject]

Pulley: ?? %

What is the correct accept/reject decision for this project?
Based on the IRR, this project should be [Accepted, Reject].

Calculate the NPV for each project. Do not round intermediate calculations. Round your answers to the nearest dollar. Use a minus sign to enter negative values, if any.

Truck: ?? %

What is the correct accept/reject decision for this project?
Based on the NPV, this project should be [Accepted, Reject].

Pulley: $ ?? %

What is the correct accept/reject decision for this project?
Based on the NPV, this project should be [Accepted, Reject].

Calculate the MIRR for each project. Do not round intermediate calculations. Round your answers to two decimal places.

Truck: ?? %

What is the correct accept/reject decision for this project?
Based on the MIRR, this project should be [Accepted, Reject].

Pulley: ??  %

What is the correct accept/reject decision for this project?
Based on the MIRR, this project should be  [Accepted, Reject].

After failing multiple attempts to do this myself, I resorted to using Chegg to help me get the answer and explain it. Thank you to whoever spends their time working it out for me.

JS: Capital budgeting JS company is considering an investment that requires an outlay of $100,000 today. Cash inflow from the investment are expected to be $10,000 for year 1-3, and $40,000 for year 4, 5, 6, 7, and 8. You require a 20% rate of return on this type of investment. Answer the following questions: First draw the time line and specify the cash outflow and inflow for each period. Calculate the net present value. Calculate the Internal rate of return of this investment. Calculate the payback periods Shall the investment be undertaken?

Please report the answer in the following multiple choices.

a. Discoutn rate 0.20 year cash flow 0 ?? 1 ?? 2 ?? 3 ?? 4 ?? 5 ?? 6 ?? 7 ?? 8 ??

b. pv of cash flow since yr 1 ??

c. npv ??

d. IRR ??

e. payback perioe ??

f. accept the project - yes or no? ??

Your division is considering two investment projects, each of which requires an up-front expenditure of $17 million. You estimate that the investments will produce the following net cash flows:

What are the two projects' net present values, assuming the cost of capital is 5%? Round your answers to the nearest dollar.
Project A $ ??
Project B $ ??

What are the two projects' net present values, assuming the cost of capital is 10%? Round your answers to the nearest dollar.
Project A $ ??
Project B $ ??

What are the two projects' net present values, assuming the cost of capital is 15%? Round your answers to the nearest dollar.
Project A $ ??
Project B $ ??

What are the two projects' IRRs at these same costs of capital? Round your answers to two decimal places.
Project A ?? %
Project B ?? %

Mr tan is considering 2 potential investment projects that have similar capital requirements:

For project A,the company cost of capital is 14%.For project B,assessed as the riskier project of the two.,a risk adjusted cost of capital of 15% is considered appropriate.

1) calculate the NPV of the 2 projects and assess the projects using the investment appraisal technique of Net present Vale.

2)Calculate the IRR of the 2 projects and assess the projects using the investment appraisal technique of Internal rate of return.

3) Is the company cost of capital suitable in the evaluation of projects with different risks? Explain

You decide to invest $100,000 in cryptocurrencies and you use that amount to buy bitcoin. Your bitcoin appreciate by 30% in one month, at which point you liquidate half your position for cash, which you do not reinvest. Bitcoin appreciates by another 25% during the second month and you sell an additional 40% of your holdings. The cryptocurrency then falls by 60% in the third month, at which point you liquidate your entire position for cash.

a. What is your dollar weighted monthly return?

b. What is the effective annualized return of your answer to part a. above?

c. What would have been your monthly return had you not liquidated any portion of your position until the end of the third month?

You are considering an investment in a mutual fund with a 6% load and expense ratio of 0.25%. You can invest instead in a bank CD paying 1% interest.

a. If you plan to invest for 5 years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b. What annual rate of return must the fund portfolio earn if you plan to invest for 7 years to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c. Now suppose that instead of a front-end load the fund assesses a 12b-1 fee of 1.00% per year. What annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Complete the balance sheet and sales information using the following financial data:

Total assets turnover: 1.4×
Days sales outstanding: 36.5 days^a
Inventory turnover ratio: 5×
Fixed assets turnover: 3.0×
Current ratio: 2.5×
Gross profit margin on sales: (Sales - Cost of goods sold)/Sales = 20%
^aCalculation is based on a 365-day year.

Do not round intermediate calculations. Round your answers to the nearest dollar.

DA Inc. is currently an all-equity firm, with a value of $500. It has 25 shares outstanding. The EBIT is 153.85 per year forever. The tax rate is 35%. The payout is 100%. It is planning to do a capital restructuring by issuing $200 of perpetual debt, costing 10% and use the proceeds to repurchase stock.
- What is the cost of unlevered equity?
- How many shares will it repurchase? At what price?
- What is the cost of levered equity? Confirm your answer by both computing the PV of all cash flows to shareholders at levered equity cost and using MMII.

Conduct a PEST analysis to evaluate the external environment of UnitedHealth Group.

1. NPV According to the text, the NPV rule states that "An investment should be accepted if the NPV is positive and rejected if it is negative." What does an NPV of zero mean? If you were a decision-maker faced with a project with a zero NPV (or very close to zero) what would you do? Why?

2. FORECASTING ERROR (RISK) What is a "forecasting error"? Why is it important to the analysis of capital expenditure projects?

Your firm has been hired to develop new software for the​ university's class registration system. Under the​ contract, you will receive $492,000 as an upfront payment. You expect the development costs to be $439,000 per year for the next 33years. Once the new system is in​ place, you will receive a final payment of $865,000 from the university 4 years from now.

a. What are the IRRs of this​ opportunity?  ​(Hint​: Build an Excel model which tests the NPV at​ 1% intervals from​ 1% to​ 40%. Then zero in on the rates at which the NPV changes​ signs.)

b. If your cost of capital is 10 ,is the opportunity​ attractive Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4will be $1.2million.  

c. What is the IRR of the opportunity​ now?

d. Is it attractive at the new​ terms?