Firm XYZ is considering a project to built a new facility to install a new production line. The firm requires a minimum return of 10% in this project, due to the risks involved. The firm is a 34% tax bracket. Sales, revenues and costs details are given in the table below:

Estimate the CCFA for the next 5 years of operation

Using the NPV and IRR decision methods, decide if the firm should take the project

__________________ is driven by fundamentals, i.e. cash flow, growth and risk while ______________ is built upon comparing an asset to what investor are paying for similar assets in public markets or M&A transactions.

You are seeking to determine the cost of equity for a publicly traded company and are given the following information: Risk free rate of 5.0%, Beta of 1.10x, equity risk premium of 4.0%. What is the cost of equity?

Gazmotron International reported net income this past year of $420 million on book value of $2,950. The company paid out $200 million in dividends.

Using the above information, what was the return on equity (ROE) and the retention ratio?

Gazmotron International reported net income this past year of $420 million on book value of $2,950. The company paid out $200 million in dividends.'

What is the expected growth rate? What would it be if the company decided not to pay any dividends?

1c.Explain two potential errors that can dramatically impact the results of your DCF valuation and how you might approach minimizing errors.

A developer wants to know if the houses in two different neighborhoods were built at roughly the same time. She takes a random sample of six houses from each neighborhood and finds their ages from local records. The accompanying table shows the data for each sample​ (in years). Assume that the data come from a distribution that is Normally distributed. Complete parts a through c below.

Find a 95​% confidence interval using the pooled degrees of freedom.

A 95% confidence interval for the mean difference in ages of houses in the two neighborhoods was (__,__).

Is this result different from the result of the​ pooled-t confidence​ interval? Explain why or why not.

Discuss principles for building healthy places in the built environment of a developed country that may encourage healthy behaviors and thereby, have a positive impact in reducing chronic disease. Give supportive examples for your response at minimum 200 word response.

Singer inc is about to start a 4 year project. A new plant will be built. The plant will require an amount of 40 million to acquire new fixed assets that will be depreciated straight-line through the life of the project. The company also possesses a building that it bought for 5 million and has a net book value of 0. Todays market value for the building is 4.1 million while it can be rented for 220,000 yearly. The company wants to situate its new plant in this building.

The following are todays market data for singer (before the project starts).

- debt: 240,000,000. Interest rate 7,5. Debt is constant

-Common stocks: 9,500,000 shares outstanding. Stock price 63.

-The levered equity beta i 1.2.

-Market 8% expected market risk premium.

-risk free rate: 5%

JP Simon Bank charges singer 1040000 as an underwriter fee on new common stock issues. Singer will raise the funds needed for the project by only issuing stock. The tax rate is 35%. The project will be managed in total separation for the others operations of the firm.

A) Calculate the new projects initial (time 0) cashflow

B) The new project has a risk profile comparable with the riskiness of its assets in place. What is the appropriate opportunity cost of capital for the project=

The Company will incur 4,000,000 in SG&A. The plant will manufacture 20,000 wigets p/year and sell them for 6,900 each. The unit production is 5,400.

C) What is the annual after-tax cashflow from the new project at the end of each of the four years

D) Assuming that the depreciation tax shield is as risky as the company's debt. what is the projects NPV?

Singer inc. is about to start a 4-year project. A new plant will be built. The plant will require an amount of $40 million to acquire new fixed assets that will be depreciated straight-line through the life of the project. The company also possesses a building that it bought for $5 million and has a net book value of 0. Today's market value for the building is $4.1 million, while it can be rented for $220,000 yearly. The company wants to situate its new plant in this building. The following are today's market data for Singer (that is before the project starts):

?Debt: $240,000,000. Interest rate: 7.5%. The debt amount is kept constant.

?Common stocks: 9,500,000 shares outstanding. Stock price: $63.

?The levered equity Beta is 1.2. Market: 8% expected market risk premium, 5% risk free rate. JP Simon Bank charges Singer $1,040,000 as an underwriter fee on new common stock issues (i.e. the cost of helping Singer issue stocks). Singer will raise the funds needed for the project by only issuing stocks. The corporate tax rate is 35%. The project will be managed in total separation from the other operations of the ?firms.

(a) Calculate the new project's initial (time 0) cash ?flow.

(b) The new project has a risk pro?le comparable with the riskiness of its assets in place. What is the appropriate opportunity cost of capital for the project? The company will incur $4,000,000 in annual administrative costs. The plant will manufacture 20,000 widgets per year and sell them for $6,900 each. The unit production cost is $5,400.

(c) What is the annual after-tax cash ?ow from the new project at the end of each of the four years of its life?

(d) Assuming that the depreciation tax shield is as risky as the company's debt, what is the project's NPV?

9.    Bo was the owner of Lot No. 1 on which he had built his home. Sadia owned the adjoining Lots No. 2 and 3, which were undeveloped, along with Lot No. 4 on which Sadia’s home was located. Bo wished to acquire Lot No. 2 in order to protect his home site from crowding if Lot No. 2 should be sold to a stranger.
Meeting Sadia on the street on January 2, Bo explained his wish to acquire Lot No. 2 and offered to buy it from Sadia for $75,000 cash. Sadia agreed and promised to deliver a deed to Lot No. 2 in 4 weeks. Bo paid Sadia $1,000 as a deposit or down payment towards the purchase price of $75.000.
On February 1, Sadia told Bo that she had changed her mind. Bo demands that Sadia perform the contract. Sadia contends that if there is any contract, it is unenforceable.
(a) [Skip part (a). We will discuss in class].
(b) In an action by Bo against Sadia for breach of contract, judgment for whom? Explain.
   [Skip parts (c) and (d). We will discuss in class.]   
(e) Assume that in addition to the [$1,000] payment, Bo, with Sadia’s knowledge and consent, entered on Lot No. 2 and had it cleared of brush on January 20 at a cost of $150, but Sadia still refused to convey. Would Bo be entitled to obtain a decree of specific performance to compel Sadia to deliver a deed to Lot No. 2 to Bo upon paying to Sadia the balance of $74,000? Explain. [We will discuss a “decree of specific performance” in class. You may assume that it means a “judgment.”]
[Skip parts (f) and (g).]

10.     Assume that in the preceding problem Sadia had sent to Bo a receipt for the $1,000 reading as follows:
“January 11. Received from Bo $1,000 on account of $75,000 purchase price of Lot No. 2 at 27 Y Street, Albans, NY Closing in 4 weeks. (Signed) Sadia.”
(a) Would Bo be entitled to a decree of specific performance against Sadia? Explain.   
(b) Assume that Sadia is willing to perform, but that Bo refuses. Would Sadia be entitled to damages against Bo? Explain.

In the Mercantile Model, the second stage is characterized by:

A. settlers built large urban areas in new inland towns

B. explorers start looking for possible new territories and gathering information

C. settlers developing complex transportation links with integrated urban systems

D. settlers harvesting natural resources in the new territory such as timbers and furs

A developer wants to know if the houses in two different neighborhoods were built at roughly the same time. She takes a random sample of six houses from each neighborhood and finds their ages from local records. The accompanying table shows the data for each sample​ (in years). Assume that the data come from a distribution that is Normally distributed. Complete parts a through c below.

​a) Find a 95% confidence interval for the mean​ difference, μ1−μ2​, in ages of houses in the two neighborhoods

b) Is 0 within the confidence interval

c) What does the confidence interval suggest about the null hypothesis that the mean difference is 0?

Air density is sea level conditions (.002377 slugs/f^t3)

w(weight) of the SS Delphine + trailer + Redeye = 3,922,000 + 150,000 + 4451 Lbs

Crr = coefficient of rolling resistance = .015

Assume Combined CDA is 1555 ft^2

SAE J2807 (Davis Dam Grande Climb) - min speed is 40mpg (59 ft/s)

F(drag) = 1/2p x V^2 x C(d)A

F(rolling resistance) = W x cos x Crr

F(weight) = W x sin

F(sum) = F(drag) + F(rr) + F(weight)

P = F(sum)XV

convert to horsepower = P(1hp/550ft lbf/sec)