You are considering a project that requires an initial investment of $110,000 with a cost of capital of 8%. You expect the project to have a five-year life, and produce cash flows of $19,000 in year 1, $38,000 in year 2, $58,000 in year 3, $29,000 in year 4 and $10,000 in year 5.

What is this project’s Discounted Payback Period?

Group of answer choices

A. 3.96 years

B. 2.91years

C. 3.65 years

D. 3.28 years

Waylander Coatings Company purchased waterproofing equipment on January 6 for $320,000. The equipment was expected to have a useful life of four years, or 20,000 operating hours, and a residual value of $35,000. The equipment was used for 7,200 hours during Year 1, 6,400 hours in Year 2, 4,400 hours in Year 3, and 2,000 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method

A company expanded into a new market in 2010. The expansion required an investment of $100 in fixed assets per year for seven years (starting 2011). However, at the end of 2015, the company decided to terminate the project and sell off the fixed assets in place. Assume 30% tax rate and zero starting value of fixed assets. All fixed assets were depreciated following the MACRS schedule shown below. How much was the depreciation tax shield in year 2015?

Group of answer choices

$24

$17.28

None of the above

$28.27

$30

Zeebadee Inc. wants to forecast free cash flow to equity (FCFE) using the percent-of-sales method. Prior year sales were $10,000.

36. What is net borrowing in Year 4?
    1. $364.04
    2. $386.66
    3. $406.30
    4. $455.05

36. What is FCFE in Year 5?
    1. $970.78
    2. $1,005.47
    3. $1,224,62
    4. $1,318.44

Suppose that a country has no public debt in year 1 but experiences a budget deficit of $50 billion in year 2, a budget deficit of $30 billion in year 3, a budget surplus of $10 billion in year 4, and a budget deficit of $2 billion in year 5.

a. What is the absolute size of its public debt in year 5?     

     Instructions: Enter your answer as a whole number. For the absolute size of its public debt, enter your answer as a positive number.

b. If its real GDP in year 5 is $104 billion, what is this country’s public debt as a percentage of real GDP in year 5?     

     Instructions: Round your answer to 2 decimal places.      

Perform a Financial Analysis for a project XY.

Assume the projected costs and benefits for this project are spread over five years as follows:

•   Estimated costs are $225,000 in Year 1, $50,000 in Year 2 , 52,500 in Year 3, 55,000 in Year 4 and 57,500 in Year 5
•   Estimated benefits are $0 in Year 1 and $182,500 each year in Years 2, 3, 4 and 5
•   Use a 9 percent discount rate, and round the discount factors to two decimal places.

Create a spreadsheet to calculate and clearly display the following:

•   NPV
•   ROI
•   The year in which payback occurs.

In addition, write a paragraph explaining whether you would recommend investing in this project, based on your financial analysis

Dividend Yield and Dividend Payout
The following information is available for West Texas Waste Management Inc. (WTWM).

Calculate WTWM's dividend payout ratio and dividend yield for Year 1 through Year 3.

Round all answers to one decimal place.

Which factor-dividends or earnings-seems to be driving WTWM's share price movement?

Answer

your company deciding whether to invest in a new machine. The new machine will increase cash flow by $275,000 per year. You believe the technology used in the machine has 10 years of life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine currently priced at $1.8 Million. The cost of the machine will decline by $ 140,000 per year until reaches $1.1 Million. where it will remain. 1) if you required return is 8 percent calculate the NPV today 2) if your required return is 8 percent calculate the following years. year 1. year 2. year 3. year 4. year 5. year 6.

A company is deciding whether to lease or purchase an asset. In this question we will evaluate the NPV of the purchase decision.

The capital cost required to purchase the asset is $1,000,000 (at time zero) with a salvage value of $500,000 at the end of the 5th year. The purchased asset can be depreciated based on MACRS 5-year life depreciation with the half year convention (table A-1 at IRS) over six years (from year 0 to year 5).

The asset would yield annual revenue of $350,000 for five years (from year 1 to year 5) and operating cost of $60,000 for year 1 to 5. If the income tax is 40% and the annual discount rate is 16%, calculate the NPV for the purchase decision

In year 1 the government spends $405 million and collects $356 million in taxes. Public saving in year 1 is equal to $  million and the government debt is equal to $  million.

In year 2 the government spends $390 million and collects $360 million in taxes. Public saving in year 2 is equal to $  million and the government debt is now equal to $  million.

In year 3 the government spends $360 million and collects $358 million in taxes. Public saving in year 3 is equal to $  million and the government debt is now equal to $  million.

In year 4 the government spends $405 million and collects $425 million in taxes. Public saving in year 4 is equal to $  million and the government debt is now equal to $  million.