Company MNO generates between 11000 and 15000 million dollars revenue per year. Suppose that the company's...

Company MNO generates between 11000 and 15000 million dollars revenue per year. Suppose that the company's revenue stays within this range. Use an interest rate of 9.75% per year compounded continuously. Fill in the blanks in the paragraph below, rounding your answers to the nearest tenth.

The present value of MNO's revenue over a five year period is between _______________ and ______________ million dollars.

Over a twenty-five year period, the present value falls between ____________ and _____________ million dollars

Solutions

Expert Solution

milcah answered 1 year ago

Next > < Previous

Related Solutions

A company generates perpetual revenues averaging $20 million per year. On average, raw materials are 60%...

A company generates perpetual revenues averaging $20 million per year. On average, raw materials are 60% of revenues. There are no other operating costs. (Ignore taxes.) A vendor offers to supply all raw materials for a five-year fixed price contract of $12 million per year. Subsequently, your company will revert to variable prices for raw materials. The company cost of capital is 10% and the cost of debt is 6% a. Calculate the value of the company with and without...

The Arc Electronic Company had an income of 72 million dollars last year. Suppose the mean...

The Arc Electronic Company had an income of 72 million dollars last year. Suppose the mean income of firms in the same industry as Arc for a year is 85 million dollars with a standard deviation of 9 million dollars. If incomes for this industry are distributed normally, what is the probability that a randomly selected firm will earn more than Arc did last year? Round your answer to four decimal places.

Suppose the mean income of firms in the industry for a year is 25 million dollars...

Suppose the mean income of firms in the industry for a year is 25 million dollars with a standard deviation of 9 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 34 million dollars? Round your answer to four decimal places.

Suppose the mean income of firms in the industry for a year is 55 million dollars...

Suppose the mean income of firms in the industry for a year is 55 million dollars with a standard deviation of 3 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 60 million dollars? Round your answer to four decimal places.

Suppose Company A has revenue $45 million this year and we assume that its future performance...

Suppose Company A has revenue $45 million this year and we assume that its future performance will be tracked relative to sales as follows: Sales growth and the net profit margin are projected by year as shown in the following table: year 1 2 3 4 5 6 Sales growth 35% 28% 24% 20% 15% 6% Net profit margin 10.0% 9.0% 8.0% 7.0% 6.5% 6.0% The growth rate will maintain at 6% after year 6 Fixed capital investment net of...

The US generates ∼ 4,000 million megawatthours (MWh) of electricity per year (source: DOE1 ). Note:...

The US generates ∼ 4,000 million megawatthours (MWh) of electricity per year (source: DOE1 ). Note: a MWh has units of power × time, or energy. Assume that the demand for this energy is constant over the course of the day and year. Imagine building an array of solar panels in the desert in the Southwest. Allowing for night and day, sunlight will shine on the panels for 12 h per day. Electricity generated during the day will be stored...

Company ABC estimated revenue is 10 million in 2019 and 2% growth per year. Profit margin...

Company ABC estimated revenue is 10 million in 2019 and 2% growth per year. Profit margin is stable annually and equals to 20%. Non-cash P&L items estimated at 12% of total sales. Company will purchase equipment at 2021 for 3 million. Interest expense is 800.000 annually and tax rate is 20%. Calculate FCFF for first 3 years. Explain the method you would use to calculate PV of future cash flows after year 3. Using results, calculate value of the company...

The sales of a company (in million dollars) for each year are shown in the table...

The sales of a company (in million dollars) for each year are shown in the table below. Is there evidence of a linear relationship between the two variables, and are they positively correlated? x (years since 2010) 5 6 7 8 9 y (sales in millions) 12 19 29 37 45 a. Assign variables and sketch the scatter gram b. State the Null and Alternative Hypotheses as if a complete hypothesis test had been conducted. c. Find the linear...

The sales of a company (in million dollars) for each year are shown in the table...

The sales of a company (in million dollars) for each year are shown in the table below. Is there evidence of a linear relationship between the two variables, and are they positively correlated? x (years since 2010) 5 6 7 8 9 y (sales in millions) 12 19 29 37 45 a. Assign variables and sketch the scatter gram. b. State the Null and Alternative Hypotheses as if a complete hypothesis test had been conducted. c. Find the linear...

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014....

The following table shows a company's annual revenue (in billions of dollars) for 2009 to 2014. Year Period (t) Revenue ($ billions) 2009 1 23.6 2010 2 29.2 2011 3 37.8 2012 4 50.3 2013 5 59.8 2014 6 66.6 a) What type of pattern exists in the data? The time series plot shows an upward curvilinear trend. The time series plot shows a downward curvilinear trend. The time series plot shows a downward linear trend. The time series...

Subjects