Compute the cost of debt financing. Compute the cost of equity financing using the capital asset pricing model. Compute the weighted average cost of capital. The capital investment is to be depreciated as a 7 year asset using this table: Ownership year 1 (14.29%), year 2 (24.49%), year 3 (17.49%), year 4 (12.49%), year 5 (8.93%), year 6 (8.92%), year 7 (4.46%). Evaluate each independent project by computing net present value, internal rate of return, and payback. Then decide whether to accept or reject the project.

Debt 40%, interest rate 5%, tax rate 26%, equity 60%, risk free rate 6%, RM 13%, beta 1.10, working capital 10% next year's sales, no terminal cash flows

project 1 capital investment 1,000,000 year 1(revenue 780,000, expenses 585,000) year 2(revenue 799,500,expenses 599,625) year 3(revenue 819,488, expenses 614,616) year 4(revenue 839,975, expenses 629,981) year 5 (revenue 860,974, expenses 645,731) year 6 (revenue 882,498, expenses 661,874) year 7 (revenue 904,561, expenses 678,421) year 8 (revenue 927,175, expenses 695,381)

project 2 capital investment 750,000 year 1(revenue 800,000, expenses 600,000) year 2 (revenue 820,000, expenses 615,000) year 3 (revenue 840,500, expenses 630,375) year 4 (revenue 861,513, expenses 646,134) year 5 (revenue 883,050, expenses 662,288) year 6 (revenue 905,127, expenses 678,845) year 7 (revenue 927,755, expenses 695,816) year 8 (revenue 950,949, expenses 713,211)

project 3 capital investment 1,000,000 year 1 ( revenue 850,000, expenses 680,000) year 2 (revenue 871,250, expenses 697,000) year 3 (revenue 893,031, expenses 714,425) year 4 (revenue 915,357, expenses 732,286) year 5 ( revenue 938,241, expenses 750,593) year 6 (revenue 961,697, expenses 769,358) year 7 (revenue 985,739, expenses 788,592) year 8 (revenue 1,010,383, expenses 808,306)

Dividend Yield

The market price for Macro Corporation closed at $40.54 and $34.50 on December 31, current year, and previous year, respectively. The dividends per share were $0.60 for current year and $0.69 for previous year.

a. Determine the dividend yield for Macro on December 31, current year, and previous year. Round percentages to two decimal places.

b. The dividend yield   from the previous year to the current year. This is a result of a(n)   in the dividend relative to stock price.

Hi,

Can you please solve this correctly?

With interest at 10%, what is the benefit-cost ratio for this government project?

Enter your answer as follow: 12.34

Consider the 2 cash flow options below at an interest rate of 10%

Option A stops at 15 years, while option B goes until year 30. The final year of option B is equal to 10200.

Yearly savings for option A is 10000 and for option B is 20000.

The salvage value for option A is 5000 and for option B is 12000.

Which option is better?

An investor is reviewing two proposals, assuming similar risk profiles and a 14% required return, which one should the investor buy? Why?

Lee Vista:

Purchase Price: $464,000

Cash flows from operations:

Year 1 $48,000

Year 2 $49,440

Year 3 $50,923

Year 4 $52,451

Year 5 $54,025

Cash flow from sale on year 5 $560,000

Colony Park:

Purchase Price: $500,000

Cash flows from operations:

Year 1 $56,000

Year 2 $57,400

Year 3 $58,835

Year 4 $60,306

Year 5 $61,814

Cash flow from sale on year 5 $597,000

Projects A and B, both of equal risk, are mutually exclusive alternatives for expanding Corporation’s capacity. The firm’s cost of capital is 13%. The cash flows for each project are shown in the following table.

                                    Project A                                              Project B

                        Year 0:             ($80,000)                     Year 0:             ($80,000)

                        Year 1:             $15,000                        Year 1:             $15,000

                        Year 2:             $20,000                        Year 2:             $15,000

                        Year 3:             $25,000                        Year 3:             $15,000

                        Year 4:             $30,000                        Year 4:             $35,000

                        Year 5:             $30,000                        Year 5:             $25,000

            A.        What is each project’s payback period? (4 points)

B.         What is each project’s net present value? (4 points)

XYZ Corporation is considering the manufacture of a thermosetting resin as packaging material. R&D Teams have developed two alternatives: Synthetic Resin, and Epoxy Resin. The following tables show the expected CFFA from each project. Synthetic Resin Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow (1,100,000) 150,000 200,000 300,000 650,000 700,000 Epoxy Resin Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Net Cash Flow (850,000) 650,000 400,000 300,000 250,000 200,000 a. What is the best project according to the payback method?

The Dammon Corp. has the following investment opportunities:

Under the payback method and assuming these machines are mutually exclusive, which machine(s) would Dammon Corp. choose?

Multiple Choice

• Machine A

• Machine B

• Machine C

• Machine A and B

Create a python program to determine which years are leap years (see key information at the bottom). Note: Do not use any lists.

1. Define a function that takes a parameter (year) and verifies if the parameter year is a leap year. If it is a leap year, the function returns True. Else, it returns False. Note: the function should not print anything.

2. Using the function, check if each of the years from 2000 to 2200 (both inclusive) is a leap year.

3. Output all the leap years between 2000 and 2200 in a single line

4. Program should end by printing the number of leap years found, with a short message.

Key information to determine if a given year is a leap year or not:

1. Determine whether the year is divisible by 100. If it is, then the year is a leap year if and only if the year is also divisible by 400. For example, 2000 is a leap year, but 2100 is not.

2. If the year is NOT divisible by 100, then the year is a leap year if and only if it is divisible by four. For example, 2008 is a leap year, but 2009 is not

To determine how much money you have to invest, add up the investment for the 4 projects. Multiple this total by 80% to get how much money your company has to spend. Choose the best combination of projects for the company to invest in. Show one break even analysis.  

Total Investment = $198420.19

Projects:
#1
Invest $60000 in a 3D Printer
Training and installation $10000
Revenue per year $18000
Cost per year $3000
Market Value year 11 $30000

#2
Invest 42276 Euros in a Flow Jet Cutter
Installation $8000
Revenue per year $14000
Cost per year $4000
Market Value year 11 $15000

#3
Invest $40000 bar coding system
Setup, training $10000
Labor savings 1st year $15000 +3%/year
Cost per year $2500
Market Value year 11 $14000

#4
Invest $88000 in an Engineering software simulation tool
Training $12000
Revenue per year $27000
Cost per year $5000
Market Value year 11 $25000

#5
Invest 20325 Euros in a conveyor
Install $5000
Savings 1st year $11000, plus 3%/year
Cost per year $4000
Market Value year 11 $25000

#6
Invest $53000 in an automated inspection tool
Calibration, setup $12000
Savings 1st year $19000 plus 3%/year
Cost per year $5000
Market Value year 11 $25000

#7
Invest $82000 in packaging equipment
Installation $8000
Revenue 1st year $22000, + 4% per year
Cost per year $4500
Market Value year 11 $35000

#8
Invest 15477 Euros in automated paint box
Training $1000
Savings 1st year $7000 plus 3%/year
Cost per year $3500
Market Value year 11 $20500

From the Finance Department:
The following information is for all the projects:
11 Year life
MACRS GDS 7 year property
Federal Corporate Tax Rate = 21%
State Corporate Tax Rate = 6.3291%
Use current currency exchange rate as needed
Use inflation rates given