Please show working and explanation for me.

You are valuing an investment that will pay you $17,000 per year for the first ten years, $35,000 per year for the next ten years, and $48,000 per year the following ten years (all payments are at the end of each year). If the appropriate annual discount rate is 9.00%, what is the value of the investment to you today (in whole number)?

Project Q                      Project R

Investment                    100,000                        500,000

IRR                              15.5%                           12.3%

NPV                             $5500.00                      $6750.00

Profitability Index         1.055                            1.014

If the projects are mutually exclusive, which one should be selected? Why?

A company must develop the relevant cash flows for a replacement capital investment proposal. The proposed asset costs $50,000 and has installation costs of $3,000. The asset will be depreciated using a five-year recovery schedule. The existing equipment, which originally cost $25,000 and will be sold for $10,000, has been depreciated using an MACRS five-year recovery schedule and three years of depreciation has already been taken. The new equipment is expected to result in incremental before-tax net profits of $15,000 per year. The firm has a 40 percent tax rate. Note: Assume that both the old and the new equipment will have terminal values of $0 at the end of year 5. The WACC for the company is 10%.

1- determine the NPV

2- determine the IRR

3- should it reject or accept the replacement and explain why

PLEASE SHOW ALL WORK THROUGH EXCEL!!!!!!!!!

Wizard Corporation has analyzed their customer and order handling data for the past year and has determined the following costs:

Order processing cost per order $7

Additional costs if order must be expedited (rushed) $8.00

Customer technical support calls (per call) $12

Relationship management costs (per customer per year) $1200

In addition to these costs, product costs amount to 75% of Sales.

In the prior year, Wizard had the following experience with one of its customers, Chester Company:

Sales $15,500

Number of orders 160

Percent of orders marked rush 70%

Calls to technical support 80

Required: Calculate the profitability of the Chester Company account.

Explain important factors that cause differences in cash flow between subsidiaries versus parent companies

Discuss the benefits of Foreign Direct Investment. Find and discuss real world examples of FDI.

PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was:

Direct material $625,000

Direct labor 375,000

Variable overhead 125,000

Fixed overhead 1,500,000

Total cost $2,625,000

At the start of the current year, the company received an order for 3,800 drives from a computer company in China. Management of PowerDrive has mixed feelings about the order. On the one hand they welcome the order because they currently have excess capacity. Also, this is the company’s first international order. On the other hand, the company in China is willing to pay only $135 per unit.

What will be the effect on profit of accepting the order?

Discuss the exchange rate risk exposures including transactions, economic and translation exposure for the proposed business. Business being clothing in Italy.

What does the efficient frontier represent?

Exactly two years ago an investor purchased a Portuguese government bond with a face value of EUR 10,000, an annually paid coupon of 5%, a remaining maturity of 10 years, and a YTM of 12%. Today, i.e., two years later, the bond has a YTM of 4%. What is the capital gain in EUR for this investor who bought the bond two years ago and sold it today (rounded to the nearest EUR)?

Titan Mining Corporation has 9.9 million shares of common stock outstanding, 430,000 shares of 6.1 percent semiannual bonds outstanding, par value $1,000 each. The common stock currently sells for $47 per share and has a beta of 1.15; the bonds have 20 years to maturity and sell for 118 percent of par. The market risk premium is 8.7 percent, T-bills are yielding 5 percent, and the company’s tax rate is 24 percent.

a. What is the firm’s market value capital structure? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.)

b. If the company is evaluating a new investment project that has the same risk as the firm’s typical project, what rate should the firm use to discount the project’s cash flows?

Please show all work and formulas

Please use the following information to answer this question.

State     Probability       A                     B                      C

Boom   .3                     -10%                5%                   0%

Normal            .4                     5                      3                      2                     

Bust     .3                     10                    -5                     2

Find the expected return and variance of the portfolio if an investor spent $5000 on A, $8000 on B and $7000 on C.

Net Present Value and Discounted Payback Period

Using the amount of capital expenditures incurred in 2018 -1976.4 (which will consider to be an initial investment outflow), assume the company will generate operating cash inflows of $205 million the first year, $385 million the second year, $478 million the third year, $599 million the fourth year, $625 million the fifth year, and $100 million the year six.

a.) What is the NPV using the company’s WACC of 3.56 and what is the IRR?

b.) Did the company make a good investment decision using the NPV criteria?

c.) If the company had a discounted payback period policy of four years, did it make a sound investment decision (use the company’s calculated WACC)?

Question-4: BBB is a clothing retailer with a current share price of $10.00 and with 25 million shares outstanding. Suppose that BBB announces plans to lower its corporate taxes by borrowing $100 million and using the proceeds to repurchase shares. Suppose that BBB pays corporate taxes of 35% and shareholders expect the change in debt to be permanent. Assuming that capital markets are perfect except for the existence of corporate taxes, what should be the number of shares outstanding after the share repurchase? YOUR SOLUTION:  

One Step, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 20 years to maturity that is quoted at 95 percent of face value. The issue makes semiannual payments and has a coupon rate of 9 percent.

What is the company's pretax cost of debt?

If the tax rate is 21 percent, what is the after tax cost of debt?