value investing, and growth investing. Intrinsic investing . moat analysis with pnc Bank I am writing a five page paper on intrinsic Value and how to view a company's worth for investing in the stock market

A rancher is considering the purchase of additional land to expand operations. He can operate an additional 1000 acres with present labor and machinery. The land is selling for $750 per acre. This rancher believes that the operating revenue per acre of land will be $550 and operating expenses will be $450 in present dollars. He expects the inflation rate will be 3%. The rancher will sell the land in 3 years and he anticipates that land prices will increase at the rate of inflation from the base of $750 per acre. A bank will loan him $600 per acre of land and the loan will be fully amortized over 15 years at 12% (annual payments). The outstanding balance of the loan will be paid at the end of the third year. Assume that the marginal tax rate is 15% and that he requires at least an 8% pre-tax, risk-free return on capital and a 2% risk premium on projects of comparable risk.

(i) Calculate the nominal after-tax net returns at the end of year 2.

            a. $78.30                                                         b. $84.52

           c. $90.18                                                       d. None of the answers are correct

Enter Response Here:

(ii) What is the present value of the nominal after tax net return after 3 years?

            a. $258.10                                                      b. $213.27

            c. $230.01                                                     d. None of the answers are correct

Enter Response Here:

(iii) What is present value of the after-tax terminal value after 3 years?

            a. $612.38                                                      b. $628.66

            c. $633.46                                                     d. None of the answers are correct

Enter Response Here:

(iv) What is the net present value?

            a. $134.89                                                      b. $97.22

            c. $113.47                                                     d. None of the answers are correct

THE ANSWERS WILL NOT BE "NONE OF THE ANSWERS ARE CORRECT"

If an asset costs $240,000 and is expected to have a $40,000 salvage value at the end of its ten-year life, and generates annual net cash inflows of $40,000 each year, the cash payback period is

 For the project shown in the following​ table,

LOADING...

​,

calculate the internal rate of return

​(IRR).

Then​ indicate, for the​ project, the maximum cost of capital that the firm could have and still find the IRR acceptable.

The​ project's IRR is __ %

​(Round to two decimal​ places.)

The John Deer Company is evaluating the replacement of one of its machines. The machine was originally purchased ten years ago at a cost of $35,000 and has been depreciated to a book value of zero. If Pioneer replaces the machine, it will be able to bid on larger projects that require the capabilities of the new machine. The new machine will cost the firm $80,000, which will be depreciated over 4 years according to the following depreciation rates: 40% in each of years 1 and 2, and 10% in each of years 3 and 4. The new machine qualifies for an immediate 2% investment tax credit. Pioneer anticipates that at the end of the machine’s eight year economic life it will be sold for $10,000. Pioneer estimates that its existing machine can be sold today for $5,000. If John Deer does not replace the machine, it anticipates being able to use the existing machine for eight more years at which time its salvage value would be zero. Without the purchase of the new machine, John Deer expects to generate revenue of $200,000 per year. The firm’s use of its existing machine is expected to generate operating expenses of $120,000 per year. If the new machine is purchased, Pioneer expects the firm’s annual revenues and operating costs to increase to $270,000 and $170,000 respectively. John Deer's marginal tax rate is 40%. To finance this project, Pioneer will raise 30% of the capital from debt and 70% of the capital from equity; its after-tax cost of debt is 8% and the cost of equity is 18%. a. Calculate the NPV for this project. b. Calculate the IRR for this project; you should use Excel to do this. Calculate the IRR to 2 decimals; for example, 25.63%.

FCOJ, Inc., a prominent consumer products firm, is debating whether to convert its all-equity capital structure to one that is 20 percent debt. Currently, there are 12,000 shares outstanding, and the price per share is $87. EBIT is expected to remain at $25,200 per year forever. The interest rate on new debt is 8 percent, and there are no taxes. a. Allison, a shareholder of the firm, owns 250 shares of stock. What is her cash flow under the current capital structure, assuming the firm has a dividend payout rate of 100 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will Allison’s cash flow be under the proposed capital structure of the firm? Assume she keeps all 250 of her shares. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Assume that Allison unlevers her shares and re-creates the original capital structure. What is her cash flow now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Bellinger Industries is considering two projects for inclusion in its capital budget, and you have been asked to do the analysis. Both projects' after-tax cash flows are shown on the time line below. Depreciation, salvage values, net operating working capital requirements, and tax effects are all included in these cash flows. Both projects have 4-year lives, and they have risk characteristics similar to the firm's average project. Bellinger's WACC is 11%.

What is Project Delta's IRR? Do not round intermediate calculations. Round your answer to two decimal places.

%

A mining company is considering a new project. Because the mine has received a permit, the project would be legal; but it would cause significant harm to a nearby river. The firm could spend an additional $10 million at Year 0 to mitigate the environmental Problem, but it would not be required to do so. Developing the mine (without mitigation) would cost $60 million, and the expected cash inflows would be $20 million per year for 5 years. If the firm does invest in mitigation, the annual inflows would be $21 million. The risk-adjusted WACC is 12%.

1. Calculate the NPV and IRR with mitigation. Round your answers to two decimal places. Do not round your intermediate calculations. Enter your answer for NPV in millions. For example, an answer of $10,550,000 should be entered as 10.55.
   NPV $ million ????
   IRR 15.24%

You (US company) imported Earth Moving Equipment (EME) from Australia. You imported EME at US$ 300 (with Cash) on Dec 1, 2018. On Dec 15, 2018, you sold EME to Australia at A$400 (Australian $) in AR. The exchange rate on Dec 15, 2018 was 2 A$/US$. The exchange rate on Dec 31, 2018 was 4 A$/US$. On Feb 1, 2019, your customer paid you in full. The exchange rate on Feb 1 was 1 A$/US$. What were NI in 2018 and 2019, respectively? 100, 200 -100, 300 -200, 200 100, 100

You are UK company, 200,000 US$ payable to US in one year. Answer in terms of BP (British Pound). Round at four decimal places Examples: 1.23487 ---> 1.2349; 1.23533 --> 1.2353 Information for Forward Contract: Forward exchange rate (one yr): 0.7124 BP/$ Information for Money Market Instruments (MMI): Current exchange rate: 0.7173 BP/$ Investment return at JP Morgan (in US): 5% annual Interest rate of borrowing from HSBC (UK): 3% annual Information you need for Currency Options Contract: Exercise options premium at 0.09 BP/$ Interest rate of borrowing from HSBC (UK): 3% annual Allowed to exercise options at 0.7215 BP/$ Under the COC, the break-even exchange rate is .6109 BP/$. If the management team speculates the exchange rate at the time of the payment would be .6223 BP/$, would they sign the COC contract in this case? No Yes

You are trying to determine the total cost for XYZ's monthly cash collection system. Your firm receives an average of 4000 remittances per month with an average face value of 7500. Total float come to 7 days. 6% is your average opportunity cost and your variable cost is 0.35 per check. What is XYZ's cost for its cash collection system?

Jetta production cost in 2002 and 2003 was 14,000 Euro per Jetta. Jetta sold in US at $15,000 in 2002 and 2003. Forward hedge exchange rate was 1 $/Euro in 2003. Rate without hedge (i.e. market exchange rate) was 1.25$/Euro in 2003. If 12,000 Jetta were sold in US, in 2003, by 60% forward hedge and 40% not hedged. What would be profits or loss from sales of 12,000 Jetta in US?  

Loss of 2.4 million Euro.

Profit of 1.8 million Euro.

Loss of 2.8 million Euro

Profit of 1.2 million Euro.

15. Marvin’s Interiors issued 9-year bonds 2 years ago. The bonds have a face value of $1,400, a 9.0 percent, semiannual coupon, and a current market price of $1,189. What is the pre-tax cost of debt? 13.97 percent 13.02 percent 12.27 percent 13.53 percent

16.

3.23 percent

9.52 percent

4.76 percent

6.37 percent

11.45 percent

17.

9.25 percent; 12.61 percent

12.61 percent; 9.25 percent

9.25 percent; 8.73 percent

8.73 percent; 9.25 percent

12.61 percent; 8.73 percent

What are some of the advantages and disadvantages of investing in a mutual fund? Explain why the vast array of mutual funds available may be a partial drawback for investors. How can investors assess mutual fund performance?