Question

In: Finance

Category T0 T1 T2 T3 Investment −​$9,910,109 Net working capital change -$667,000 ​$667,000 Operating cash flow...

Category

T0

T1

T2

T3

Investment

−​$9,910,109

Net working capital change

-$667,000

​$667,000

Operating cash flow

​$3,467,000

​$4,050,000

​$4,708,000

Salvage

​$359,000

a) What is the IRR of the​ project?

b) At what adjusted WACCs will the company accept this​ project?

Solutions

Expert Solution

a) IRR = 11.13%

b)ADJUSTED WACC SHOULD BE LESS THAN 11.13% TO ACCEPT THE PROJECT

jeff jeffy answered 1 year ago
Next > < Previous

Related Solutions

Category T0 T1 T2 T3 Investment -$3,605,000 Net working capital change -$   236,000 $   236,000 Operating...
Category T0 T1 T2 T3 Investment -$3,605,000 Net working capital change -$   236,000 $   236,000 Operating cash flow $1,483,000 $1,483,000 $1,483,000 Salvage $   287,000 Should Brawn accept or reject this project at an adjusted WACC of 7.347.34​%, 9.349.34​%, or 11.3411.34​%?
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow...
Calculate “Operating” Cash Flow, ΔNet Working Capital, Net Capital Spending, Cash Flow from Assets, Cash Flow to Creditors, and Cash Flow to Shareholders. Please show work and equations. Balance Sheet 2015 2016 Income Statement 2016 Cash 5800 5820 Sales 26500 All Other Current Assets 4000 4910 Various Operating Expenses 11900 Net Fixed Assets 6600 9200 Depreciation Expense 1400 Current Liabilities 7200 8870 Interest Expense 920 Long-term Liabilities 5700 6940 Gain on Sale of Asset 1020 Common Stock 2500 3380 Taxable...
Consider the following history H: T2:R(Y), T1:R(X), T3:R(Y), T2:R(X), T2:W(Y), T2:Commit, T1:W(X), T1:Commit, T3:R(X), T3:Commit Assume...
Consider the following history H: T2:R(Y), T1:R(X), T3:R(Y), T2:R(X), T2:W(Y), T2:Commit, T1:W(X), T1:Commit, T3:R(X), T3:Commit Assume that each transaction is consistent. Does the final database state satisfy all integrity constraints? Explain.
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net working capital is expected to be 500 dollars at time 2 and the level of net working capital is expected to be 2,600 dollars at time 1. What is the level of current assets for project A expected to be at time 2 if the level of current liabilities for project A is expected to be 1,900 dollars at time 2?
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net working capital is expected to be 100 dollars at time 2, the level of net working capital is expected to be 1,500 dollars at time 0, and the level of net working capital is expected to be 1,200 dollars at time 2. What is the cash flow effect from the change in net working capital expected to be at time 1? For project A, the change in net...
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net working capital is expected to be -500 dollars at time 2 and the level of net working capital is expected to be 1,500 dollars at time 2. What is the level of current liabilities for project A expected to be at time 1 if the level of current assets for project A is expected to be 7,100 dollars at time 1? For project A, the cash flow effect...
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net working capital is expected to be 300 dollars at time 2 and the level of net working capital is expected to be 2,500 dollars at time 2. What is the level of current liabilities for project A expected to be at time 1 if the level of current assets for project A is expected to be 6,600 dollars at time 1?
For project A, the cash flow effect from the change in net working capital is expected...
For project A, the cash flow effect from the change in net working capital is expected to be 300 dollars at time 2 and the level of net working capital is expected to be 1,500 dollars at time 1. What is the level of current liabilities for project A expected to be at time 2 if the level of current assets for project A is expected to be 4,600 dollars at time 2?
Consider the following code: lb $t0, 1($t1) sw $t0, 0($t2) Assume the followings. • The register...
Consider the following code: lb $t0, 1($t1) sw $t0, 0($t2) Assume the followings. • The register $t1 contains the content 0x1000,0000. • The word at memory address 0x1000,0000 is 0xAABB,CCDD. What value of the word is stored at the memory address pointed to by register $t2? Show the value of the word in hexadecimal.
Three instructors in a coordinated course, T1, T2, and T3 evaluates axam papers. T1 evaluates 20%...
Three instructors in a coordinated course, T1, T2, and T3 evaluates axam papers. T1 evaluates 20% of the exam papers, T2 pevaluates 30% and T3 evaluates 50%. The three theachers make the following proportions of errors (E) while evaluating the exam papers: 0.008, 0.008, and 0.003 respectively. If a randomly selected exam paper has an error (E), what is the probability it is from instructor T1?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT