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Company;s capital budjeting

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FIN515 managerial finance;I have 11 questions to answer in an hour and a half.....I have been trying to answer these questions but I cant figure them out and now my deadline is close;Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. The projects are not mutually exclusive. The company has a cost of capital of 15%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work. Explain your answer thoroughly.;A B C;0 -300 -100 -300;1 100 -100 100;2 100 100 100;3 100 100 100;4 100 100 100;5 100 100 100;6 100 100 -100;7 -300 -200 0;A project requires an initial cash outlay of $40,000 and has expected cash inflows of $12,000 annually for 7 years. The cost of capital is 10%. What is the project?s discounted payback period? Show your work.;A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project?s IRR? Show your work.;A project requires an initial cash outlay of $60,000 and has expected cash inflows of $15,000 annually for 8 years. The cost of capital is 10%. What is the project?s payback period? Show your work.;A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project?s NPV? Show your work.;An accident victim has received a structured settlement. According to the terms of the agreement, the victim will receive $10,000 per year at the end of each year for the next 15 years. Additionally, the victim will receive $20,000 in 10 years. The victim believes they could get 7% annually on an investment they could make if they had all the money now. What would the money be worth to them if they could get it now? Show your work.;You currently have $10,000 in your retirement account. If you deposit $500 per month and the account pays 5% interest, how much will be in the account in 10 years? Show your work.;You start saving $100 per month in an account that pays 5% interest, compounded monthly. You make the payment at the beginning of each month and interest is applied at the end of each month. How much money will you have in the account in 5 years? Show your work.;If today you put $10,000 into an account paying 10% annually, how much will there be in the account after 5 years? Show your work.;If Company A and Company B are in the same industry and use the same production method, and Company A?s asset turnover is higher than that of Company B, then all else equal we can conclude;Company A is more efficient than Company B.;Company A has a lower dollar amount of assets than Company B.;Company A has higher sales than Company B.;Company A has a lower ROE than Company B.;Suppose Novak Company experienced a reduction in its ROE over the last year. This fall could be attributed to;an increase in net profit margin.;a decrease in asset turnover.;an increase in leverage.;a decrease in equity.;Attachment Preview;helpasap.docx Download Attachment;Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year;are shown below. The projects are not mutually exclusive. The company has a cost of capital of 15%.;Which should the company do and why? You must use at least two capital budgeting methods. Show your;work. Explain your answer thoroughly.;0;1;2;3;4;5;6;7;A;300;100;100;100;100;100;100;300;B;100;100;100;100;100;100;100;200;C;300;100;100;100;100;100;100;0;A project requires an initial cash outlay of $40,000 and has expected cash inflows of $12,000 annually;for 7 years. The cost of capital is 10%. What is the projects discounted payback period? Show your;work.;A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for;9 years. The cost of capital is 10%. What is the projects IRR? Show your work.;A project requires an initial cash outlay of $60,000 and has expected cash inflows of $15,000 annually for;8 years. The cost of capital is 10%. What is the projects payback period? Show your work.;A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for;9 years. The cost of capital is 10%. What is the projects NPV? Show your work.;An accident victim has received a structured settlement. According to the terms of the agreement, the;victim will receive $10,000 per year at the end of each year for the next 15 years. Additionally, the victim;will receive $20,000 in 10 years. The victim believes they could get 7% annually on an investment they;could make if they had all the money now. What would the money be worth to them if they could get it;now? Show your work.;You currently have $10,000 in your retirement account. If you deposit $500 per month and the account;pays 5% interest, how much will be in the account in 10 years? Show your work.;You start saving $100 per month in an account that pays 5% interest, compounded monthly. You make;the payment at the beginning of each month and interest is applied at the end of each month. How much;money will you have in the account in 5 years? Show your work.;If today you put $10,000 into an account paying 10% annually, how much will there be in the account after;5 years? Show your work.;If Company A and Company B are in the same industry and use the same production method, and;Company As asset turnover is higher than that of Company B, then all else equal we can conclude;Company A is more efficient than Company B.;Company A has a lower dollar amount of assets than Company B.;Company A has higher sales than Company B.;Company A has a lower ROE than Company B.;Suppose Novak Company experienced a reduction in its ROE over the last year. This fall could be;attributed to;an increase in net profit margin.;a decrease in asset turnover.;an increase in leverage.;a decrease in equity.

 

Paper#18245 | Written in 18-Jul-2015

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