Consider a project to supply your church with 55,000
gallons of hand sanitizer annually for church services. You
estimate that you will need an initial Gh¢4,200,000 in terms of
investment to get the project started. The project will last for 5
years.
The project will bring in annual cash flows of Gh¢1,375,000. It
also estimates a salvage value of Gh¢300,000 after dismantling
costs.
Your cost of capital is 13 percent. Assume no taxes or
depreciation.
Required:
What is the NPV of the sanitizer project? Should you pursue this
project?
b) Suppose you believe that there is a best case
scenario where initial investment could be 15% lower with salvage
value and revenue being 10% higher, what would be the NPV under
this scenario?
c) In the worst case scenario, you expect annual cash inflows to be
10% lower, salvage value to be 12% lower and initial investment to
be 10% higher. Calculate the NPV under this worst case scenario.
Would you still pursue the project?
d) You just received additional information that suggests that your
base case (answer to a), best case (b) and worst case (c) scenarios
have probabilities of 0.35, 0.35 and 0.30 respectively. What will
be the expected NPV of the sanitizer project. What about the
standard deviation of the sanitizer project? Do you think the
project is still viable?
In: Accounting
Consider a project to supply your church with 55,000
gallons of hand sanitizer annually for church services. You
estimate that you will need an initial Gh¢4,200,000 in terms of
investment to get the project started. The project will last for 5
years.
The project will bring in annual cash flows of Gh¢1,375,000. It
also estimates a salvage value of Gh¢300,000 after dismantling
costs.
Your cost of capital is 13 percent. Assume no taxes or
depreciation.
Required:
What is the NPV of the sanitizer project? Should you pursue this
project?
b) Suppose you believe that there is a best case
scenario where initial investment could be 15% lower with salvage
value and revenue being 10% higher, what would be the NPV under
this scenario?
c) In the worst case scenario, you expect annual cash inflows to be
10% lower, salvage value to be 12% lower and initial investment to
be 10% higher. Calculate the NPV under this worst case scenario.
Would you still pursue the project?
d) You just received additional information that suggests that your
base case (answer to a), best case (b) and worst case (c) scenarios
have probabilities of 0.35, 0.35 and 0.30 respectively. What will
be the expected NPV of the sanitizer project. What about the
standard deviation of the sanitizer project? Do you think the
project is still viable?
In: Finance
Consider a project to supply your church with 55,000
gallons of hand sanitizer annually for church services. You
estimate that you will need an initial Gh¢4,200,000 in terms of
investment to get the project started. The project will last for 5
years.
The project will bring in annual cash flows of Gh¢1,375,000. It
also estimates a salvage value of Gh¢300,000 after dismantling
costs.
Your cost of capital is 13 percent. Assume no taxes or
depreciation.
Required:
What is the NPV of the sanitizer project? Should you pursue this
project?
b) Suppose you believe that there is a best case
scenario where initial investment could be 15% lower with salvage
value and revenue being 10% higher, what would be the NPV under
this scenario?
c) In the worst case scenario, you expect annual cash inflows to be
10% lower, salvage value to be 12% lower and initial investment to
be 10% higher. Calculate the NPV under this worst case scenario.
Would you still pursue the project?
d) You just received additional information that suggests that your
base case (answer to a), best case (b) and worst case (c) scenarios
have probabilities of 0.35, 0.35 and 0.30 respectively. What will
be the expected NPV
of the sanitizer project. What about the standard deviation of the
sanitizer project? Do you think the project is still viable?
In: Finance
In: Finance
In: Finance
Describe the difference between boundary crossing and boundary violations in a counseling relationship. How do the ACA and the NAADAC address these concepts?
*Please answer it precisely and support your answer with references.
In: Psychology
1. What are the major routes of commerce (rail, highway, air, water, pipre) in UK?
2. What's the social significance of transportation in UK?
3. What's the political significance of transportation in UK?
please answer all the three questions.
In: Economics
Excercise 11.7
Suppose the UK left the European Union, and that this move meant that UK Exports to the EU faced the common external tariff. As a result, UK exports drop sharply. (its imports would also decline, but assume for the sake of the excercise that the decline of exports is larger) Explain the effect of this exogenous decline in aggregate demand on GDP, interest rates and exchange rate in the UK, given that the central bank lets the pound float. How would your answer change if the UK had a fixed exchange rate with the euro?
6th edition Macroeconomics: A European Text
Authors: Burda & Wyploz
In: Economics
Issue: “Should there be a wall of separation
between church and state?”
Q: Issue: “Should there be a wall of separation
between church and state?” Let's see what the class can
do with this. Seek and discuss some articles
online
In: Accounting
A. The percentage of the three different political affiliations of the citizens of the United Kingdom is presented in the table below.
Political Party Percentage
Conservative Party 47%
Labour Party 37%
Other 16%
A-1) What is the sampling distribution for the sample proportion of UK citizens who support the Conservative Party?
A-2) What is the sampling distribution for the sample proportion of UK citizens who support the Labour Party?
A-3) What is the sampling distribution for the sample proportion of UK citizens who support neither the Conservative nor Labour Party?
A-4) What is the approximate probability that the sample proportion of UK citizens who support the Conservative party is higher than 0.47?
A-5) What is the approximate probability that the sample proportion of UK citizens who support the Labour party is less than 0.30?
A-6) What is the approximate probability that the sample proportion of UK citizens who support neither the Conservative nor Labour Party falls between 0.1 and 0.2?
In: Statistics and Probability