Question
In: Finance
Misaka Corp. has investments in Country C and Country D. The expected cash flows for years...
Misaka Corp. has investments in Country C and Country D. The expected cash flows for years 2 and 3 are given below, as well as the expected exchange rates. Misaka’s rate of return is 12%.
a.)Calculate the current value of the cash flows from Year 2.
b.) Calculate the current value of the cash flows from Year 3.
|
Country C Cash Flow in CRC |
Country C Exchange Rate |
Country D Cash Flow in CRD |
Country D Exchange Rate |
|
| Year 2 | 130,000 | $0.660 / CRC | 860,000 | $0.085 /CRD |
| Year 3 | 165,00 | $0.680/ CRC | 680,000 | $0.0082 /CRD |
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jeff jeffy answered 2 years agoRelated Solutions
The cash flows for four investments have been identified as follows: Investment A B C D...
The cash flows for four investments have been identified as
follows:
Investment
A
B
C
D
Cash Flow Today
in thousands of dollars
-8.0
-12.7
-6.0
-2.2
Cash Flow in One Year
in thousands of dollars
9.4
14.3
7.05
2.59
Based on the above information, and with an interest rate of 5%,
which is the best investment?
A) Investment A
B) Investment B
C) Investment C
D) Investment D
Below are the expected cash flows and interest rates for the next nine years. Cash flows...
Below are the expected cash flows and interest rates for the
next nine years. Cash flows will occur at the end of the nominated
years.
Cash Flows
Interest Rates
Year 0
Years 1 - 2
8%
Year 1
Year 2
+$ 6,500
Year 3
+$ 1,500
Years 3 – 8
6%
Year 4
Year 5
Year 6
-$ 2,500
Year 7
Year 8
Year 9
+$ 10,000
Years 9 - 10
7%
Year 10
i.
Using the Table function within...
Assume you are given these mutually exclusive investments with the expected net cash flows as in...
Assume you are given
these mutually exclusive investments with the expected net cash
flows as in the table:
Year
Project A
Project B
0
-400.00
-670
1
-528.00
210
2
-219.00
210
3
-250.00
210
4
1100.00
210
5
820.00
210
6
990.00
210
7
-325.00
210
Respond to the
questions:
Question
1:
What is each project’s
IRR?
If each project’s cost of
capital were 10%, which project, if either, should be selected? If
the cost of capital were 17%,...
A project has expected cash flows of -$1,000, $2,500, and -$1,540 in years 0, 1, and...
A project has expected cash flows of -$1,000, $2,500, and
-$1,540 in years 0, 1, and 2, respectively. The cost of capital is
15%.
a. Construct an NPV profile using interest rates of 0, 10, 20,
30, 40, 50, and 60%.
b. What is the IRR of the project?
Sweeter Enterprises Inc. has cash flows from operating activities of $438,000. Cash flows used for investments...
Sweeter Enterprises Inc. has cash flows from operating
activities of $438,000. Cash flows used for investments in
property, plant, and equipment totaled $92,000, of which 70% of
this investment was used to replace existing capacity. a. Determine
the free cash flow for Sweeter Enterprises Inc. $ b. How might a
lender use free cash flow to determine whether or not to give
Sweeter Enterprises Inc. a loan? Free cash flow is often used to
measure the financial strength of a...
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Flower Engineering is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash
Flows
Time Project
A
Project
B
0
($400)
($700)
1
($280)
$201
2
($200)
$202
3
($100)
$203
4
$600
$204
5
$600
$205
6
$925
$206
7
($170)
$207
In your report, identify which project would be selected
(assuming they...
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Flower Engineering is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash
Flows
Time Project
A
Project
B
0
($400)
($700)
1
($280)
$201
2
($200)
$202
3
($100)
$203
4
$600
$204
5
$600
$205
6
$925
$206
7
($170)
$207
In your report, identify which project would be selected
(assuming they...
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Flower Engineering is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash
Flows
Time Project
A
Project
B
0
($400)
($700)
1
($280)
$201
2
($200)
$202
3
($100)
$203
4
$600
$204
5
$600
$205
6
$925
$206
7
($170)
$207
In your report, identify which project would be selected
(assuming they...
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Flower Engineering is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash
Flows
Time Project
A
Project
B
0
($400)
($700)
1
($280)
$201
2
($200)
$202
3
($100)
$203
4
$600
$204
5
$600
$205
6
$925
$206
7
($170)
$207
In your report, identify which project would be selected
(assuming they...
Flower Engineering is considering two mutually exclusive investments. The projects' expected net cash flows are as...
Flower Engineering is considering two mutually exclusive
investments. The projects' expected net cash flows are as
follows:
Expected Net Cash
Flows
Time Project
A
Project
B
0
($400)
($700)
1
($280)
$201
2
($200)
$202
3
($100)
$203
4
$600
$204
5
$600
$205
6
$925
$206
7
($170)
$207
In your report, identify which project would be selected
(assuming they...
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