7A) Quad Enterprises is considering a new three-year expansion
project that requires an initial fixed asset investment of $2.9
million. The fixed asset will be depreciated straight-line to zero
over its three-year tax life, after which time it will be
worthless. The project is estimated to generate $2,190,000 in
annual sales, with costs of $815,000. If the tax rate is 35
percent, what is the OCF for this project? Suppose the required
return on the project is 12 percent. What is the project's
NPV?
7B. In the previous problem, suppose the project requires an
initial investment in net working capital of $300,000, and the
fixed asset will have a market value of $210,000 at the end of the
project. What is the project's Year 0 net cash flow? Year 1? Year
2? Year 3? What is the new NPV?
7C. Suppose the fixed asset actually falls into the three-year
MACRS class. All the other facts are the same. What is the
project's Year 1 net cash flow now? Year 2? Year 3? What is the new
NPV?
Please answer with Excel formulas included.
In: Finance
1.You have been following a stock for 4 months and the following is its past return
Year 1: 5%
Year 2: 16%
Year 3: -1%
Year 4: -2%
What is the expected return based on historical data?
2.You have been following a stock for 3 months and the following is its past return
Year 1: 7%
Year 2: 14%
Year 3: 7%
What is the standard deviation of the stock based on the historical data?
3.Your investment has a 30% chance of earning a 9% rate of return, a 40% chance of earning a 21% rate of return and a 30% chance of earning -3%. What is the standard deviation on this investment?
4.You calculated that the average return of your portfolio is 7% and the standard deviation is 23%, what is the value at risk (VaR) at 5% for your portfolio?
5.The returns of a mutual fund manager for the past 3 years are the following:
Year 1: 7%
Year 2: 11%
Year 3: -2%
What is the geometric average return of the fund for the past three years?
In: Finance
|
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,090,000 in annual sales, with costs of $785,000. The project requires an initial investment in net working capital of $310,000, and the fixed asset will have a market value of $215,000 at the end of the project. If the tax rate is 30 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign.) |
| Years | Cash Flow |
| Year 0 | $ -3040000 |
| Year 1 | $ 1186500 |
| Year 2 | $ 1186500 |
| Year 3 | $ ? |
|
If the required return is 13 percent, what is the project's NPV? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ ? |
In: Finance
|
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,090,000 in annual sales, with costs of $785,000. The project requires an initial investment in net working capital of $310,000, and the fixed asset will have a market value of $215,000 at the end of the project. If the tax rate is 30 percent, what is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g. 1,234,567. Negative amounts should be indicated by a minus sign.) |
| Years | Cash Flow |
| Year 0 | $ -3040000 |
| Year 1 | $ 1186500 |
| Year 2 | $ 1186500 |
| Year 3 | $ ? |
|
If the required return is 13 percent, what is the project's NPV? (Do not round intermediate calculations and round your final answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ ? |
In: Finance
|
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.32 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1.735 million in annual sales, with costs of $650,000. The project requires an initial investment in net working capital of $250,000, and the fixed asset will have a market value of $180,000 at the end of the project. The tax rate is 21 percent. |
| a. | What is the project’s Year 0 net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations. Enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.) |
| b. |
If the required return is 12 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Year 0: _____ Year 1: _____ Year 2: _____ Year 3: _____ NPV: ______ |
In: Finance
Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight- line to zero over its three-year tax life. The project is estimated to generate $1,725,000 in annual sales, with costs of $635,000. The project requires an initial investment in net working capital of $280,000, and the fixed asset will have a market value of $225,000 at the end of the project.
a. If the tax rate is 23 percent, what is the project's Year O net cash flow? Year 1? Year 2? Year 3? (Do not round intermediate calculations and enter your answers in dollars, not millions of dollars, e.g., 1,234,567. A negative answer should be indicated by a minus sign.)
b. If the required return is 11 percent, what is the project's NPV? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
a. Year 0 cash flow =
Year 1 cash flow =
Year 2 cash flow =
Year 3 cash flow =
b. NPV =
In: Finance
Using C language, and describe the algorithm
design
All the sample is correct
Tim was born in a leap year, so he would like to know when he could have his birthday party. Could you tell him? Given a positive integers Y indicating the starting year, and a positive integer N, your task is to tell the N-th leap year from year Y. Note: if year Y is a leap year, then the 1st leap year is year Y.
The input contains several test cases. The first line of the input is a single integer T which is the number of test cases. T test cases follow. Each test case contains two positive integers Y and N(1<=N<=10000). For each test case, you should output the Nth leap year from year Y.
3
2005 25
1855 12
2004 10000
2108
1904
43236
In: Computer Science
One-year T-bill rates are 3% currently. If interest rates are expected to go up 3% after year 4 every year and after, what should be the required interest rate on a 10-year bond issued today?
In: Finance
A 50-year annuity with an annual interest rate of 8%. In the first 20 years, $1000 was deposited at the beginning of each year, and in the next 30 years, $1400 was deposited at the beginning of each year. Calculate the value of this annuity at the end of the 40th year.
In: Finance
Question text
Find the PV of an annuity, which starts at $1 per year (payable at the end of the year) and increases by $1 per year to a value of $15, then decreases by $1 per year to the final payment of $1. Assume i = 0.07
In: Finance