The following information was extracted from the records of Dolphin Ltd for the year ended 30 June 20X1 · Cost of equipment that was sold: $530,000 · Accumulated depreciation for equipment that was sold: $310,000 · Cost of equipment that was purchased: $510,000 · Gain on sale of equipment: $50,000 Required: Write in the box below the net cash used for investing activities for the year ended 30 June 20X1.

An American Hedge Fund is considering a one-year investment in an Italian government bond with a one-year maturity and a euro-denominated rate of return of i_€ = 5%. The bond costs €1,000 today and will return €1,050 at the end of one year without risk. The current exchange rate is €1.00 = $1.50. U.S. dollar-denominated government bonds currently have a yield to maturity of 4 percent. Suppose that the European Central Bank is considering either tightening or loosening its monetary policy. It is widely believed that in one year there are only two possibilities:


S₁ ($|€) = €1.80 per €

S₁ ($|€) = €1.40 per €

Following revaluation, the exchange rate is expected to remain steady for at least another year.

Using your results to the last question, make a recommendation vis-à-vis when to buy the bond.

Moe's building costs $800,000 and it is expected to make $150,000 per year for the next 6 years. Given a required rate of return of 12% and maximum required payback period of 4 years, calculate the Payback Period and Discounted Payback Period for this big project and explain whether or not the big project should be accepted under each of those two methods.

1. At the beginning of its fiscal year 2020, an analyst made the following forecast for Greenfield, Inc. (in millions of dollars):

Greenfield has a net debt of $1,950 at the end of 2019. Assume that free cash flow will grow at 4 percent per year in 2024 and 2025, after that this will grow at 5 percent per year. Greenfield had 425 million shares outstanding at the end of 2019, trading at $72.5 per share. Using a required return of 9 percent, calculate the following for Greenfield at the beginning of 2020 (You have to fill in the table below, and also show your working process):

1. The enterprise value                                                                           

[5 marks]

2. Equity value                                                                            

[2 mark]

3. Equity value per share                                                                        

[1 mark]

4. Based on your estimate, should investors buy the share of this company?

                                                                                                              [1 mark]

We are evaluating a project that costs $1,920,000, has a 6 year life, and no salvage value. Assume that depreciation is staright-line to zero over the life of the project. Sales are projected at 94,000 units per year. Price per unit is $38.43, variable cost per unit is $23.60 and fixed costs are $839,000 per year. The tax rate is 23 percent and we require a return of 12 percent on this project.

Suppose the projections given for the price, quantity, variable costs, and fixed costs are all accurate within 10 percent. Calculate the best-case and worst-case NPV figures.

"A company bought a machine for $138,000. The machine was depriciated using a 5 year MACRS approach. After 3 years, the machine was sold at a salvage value of $83,500. Assuming a tax rate of 27%, what are the net proceeds from the sale of the machine?
(Hint: You will want to take your salvage values and add/subtract gains due to the sale.)"

Failure rate of electrical components manufactured by a company is 6 every year, and the time to failure of each component follows the exponential distribution. Write the failure density, failure distribution function and survival function of each component. Hence,(

a) calculate the probability that any one component supplied by the company will fail in less than half a year.

b) determine the probability that any one component will survive more than 10 months.

c) determine the mean, median and standard deviation of the failure time of any one component supplied by the company. Hence, deduce the shape of the failure density you gave in part (a).

Reddick Enterprises' stock is going to pay a dividend of $5 in the next year. Since then the dividend is projected to increase at a constant rate of 5.50% per year. The required rate of return on the stock, rs, is 9.00%. What is the present value of the 3rd year dividend? What is the price of the stock at the end of the 3rd year? (6 points Hint: to solve for P3 you need to use Div4)

You are looking to purchase a new car with the assistance of a $22,000, five-year loan at an APR of 5.4%, compounded monthly.

Required:

a. What is the monthly payment on this loan?

b. What is the amount of interest and principal on the loan’s first monthly payment?

c. What is the amount of interest and principal on the loan’s sixteenth monthly payment?

d. Show a second method to determine the amount of interest and principal on the loan’s sixteenth monthly payment.

e. How many months would it take to pay this loan down to $8,000? f. What is the total amount of interest and principal that you would pay over five years?