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Course Hero My Dashboard Study Materials Tutors Flashcards Textbook Help Study Groups Upload Documents Finance Ask a Question, Get an Answer FAST! Logout Get an answer to this Finance homework question! Get Step By Step Solution NOW! Student's Question: I need help on finding my errors within the project Excell workbook. When I go online to submit an attempt,I am scoring 84 out of 100 points. So several of my answers are wrong.I will past the multiple choice answer file below. Question 1 [Q #1 ] Net Present Value for "A" is (using a 15% discount rate) : Answer -\$357 \$357 \$411 -\$4,110 \$839 \$556 4 points Question 2 [Q #3 ] Internal Rate of Return for "A" is Answer 23.47% -19.2% -5.9% 25.44 15.22% 4 points Question 3 [Q #2 ] Net Present Value for "B" is (using a 12% discount rate): Answer \$396 -\$354 -\$462 \$188 \$3,960 -\$39,500 4 points Question 4 [Q #4 ] Internal Rate of Return for "B" is Answer 15.22% -15.22% -23.4 23.4%. 4 points Question 5 [Q # 7] Given a borrower has \$385,000 per year to pay on a loan and given the lenders debt coverage ratio of 1.3, what is the amount the lender will allow the borrow to allocate toward a loan? (per year) Answer \$385,000 \$536,000 \$22,333 \$296,154 4 points Question 6 [Q # 6] What is the after tax, after CapEx cash flow able to service a loan? Answer \$506,670 \$609,344 \$296,670 -\$184,960 4 points Question 7 [Q # 5 ] Net Present Value of the after tax cash flows on the pro forma is Answer -\$1,520,311 -\$1,648,334 -1,420,978 1,462,802 \$1,520,311 4 points Question 8 [Q # 8] The total amount of debt that can be serviced if \$100,000 is paid each period. (Restated: Given PMT = \$100k, i = 10%, n = 15, what is the loan amount (using annual compounding)) Answer \$2,375,250 \$760,607 \$76,923 \$1,257,750 \$1,500,000 3 points Question 9 [Q #9 ] Given the data on worksheet "Q9 - 13", What is the WACC of company "XYZ"? Answer 12.18% 11.19% 10.4 12.0% 4 points Question 10 [Q # 10] Calculate CAPM based on "XYZ" common equity based on the data provided. Answer 11.4 % 17.5% 13% 12.04% 4 points Question 11 [Q # 12] What is the payback for project "M". (If you like, you can use a 20% discount rate). Answer about \$734k \$5,803 (Present value) 6 years 16% 4 points Question 12 {Q # 13] Comparing the net income yield to a CD or risk free rate of 6%, does project "M" beat the risk free rate? Compare year one if you consider the Net Income versus the Price paid for project "M". Answer Yes No 6% Trick question! 4 points Question 13 [Q # 11] What is the appropriate discount rate to evaluate this opportunity (of those provided here)? Answer Cost of marginal debt the average return for the stock market (knowing XYZ is a public company). Beta of XYZ times the stock market average. Since the risk of the project is not given, it will be assumed it is riskier that a diversified portfolio; therefore, the discount rate is greater than 17.5% 4 points Question 14 [Q # 15 ] Ranking the projects (highest to lowest) according to IRR Answer N, O, P, Q Q, P, N, O P, N, Q, O O, P, N, Q P, N, O, Q 4 points Question 15 [ Q #16 ] Ranking projects (earliest to latest) using the payback method Answer Q, P, O, N Q, O, P, N O, N, Q, P P, N, Q, O 4 points Question 16 [Q #14 ] Ranking the projects (highest to lowest) according to NPV Answer N, O, P, Q O, P, Q, N P, O, N, Q P, N, Q, O 4 points Question 17 [Q #19 ] What is the pro forma revenue calculated for year 5? Answer \$896,580 \$210,311 \$473,508 \$143,644 \$2,406,820 4 points Question 18 [Q # 25 ] What is the IRR of this acquisition? Answer 18.2% 15% Cannot be determined 8% 4 points Question 19 [Q # 24 ] Using the given discount rate, what is the NPV of the acquisition? (Use your equity investment (your cash out of pocket) and the cash flows from the opportunity) Answer \$1,690,126 \$2,154,294 \$6,482 \$714,213 4 points Question 20 [Q #17] What is the purchase Price of the acquisition? Answer \$30,000,000 \$11,100,000 \$2,835,000 \$6,000,000 4 points Question 21 [Q #18 ] What is the Goodwill Amount of the Purchase Price? Answer \$88,750 \$1,775,000 \$1,060,000 -\$1,060,000 Does not exist in this problem. 4 points Question 22 [Q # 22 ] What is the net cash flow for year 2? (after debt service and CapEx) Answer \$131,179 \$420,575 -\$1,991 \$64,512 \$861,840 4 points Question 23 [Q #23 ] Without considering any principal payments or capital expenditures, what is the cash flow for the seller in the year of the sale? Answer \$64,512 \$364,000 \$187,000 -\$2,457 Cannot determine from the information; but seller was not profitable and that is why he is selling. 4 points Question 24 [Q # 21] What is the net income for year 1? Answer \$117,592 \$330,217 -\$1,991 \$64,675 4 points Question 25 [Q #20 ] What is the principal portion of your debt payment in year 8? Answer \$330,750 \$212,625 \$0 \$512,750 4 points Question 26 [Q # 26 ] Considering the "math answer only", do we make the acquisition? Answer no maybe yes Bottom of Form Download Attachment: Finance (1) 180211_Modified(1).xls ASK THIS QUESTION ... Tutor's Reply: Dear Student, I have accepted your assignment and started working on it. Thank You. Tutor's Reply: Dear Student, Please find the solution attached. ============================================= I have highlighted my comments in Green Colour in the word document and also in the excel sheet whereever I have computed something. ================================================ Regards Download Attachment: 6752969.xls Tutor's Reply: Dear Student, Please find the solution attached. ============================================= I have highlighted my comments in Green Colour in the word document and also in the excel sheet whereever I have computed something. ================================================ Regards Download Attachment: 6752969.docx Get Step By Step Solution NOW! Student's Question: Did you receive my previous reply? ASK THIS QUESTION ... Tutor's Reply: Dear Student, Please find the solution attached. ============================================= I have highlighted my comments in Green Colour in the word document and also in the excel sheet whereever I have computed something. ================================================ Regards Download Attachment: 6752969.xls Tutor's Reply: Dear Student, Please find the solution attached. ============================================= I have highlighted my comments in Green Colour in the word document and also in the excel sheet whereever I have computed something. ================================================ Regards Download Attachment: 6752969.doc Tutor's Reply: Dear Student, Please find the solution attached. ============================================= I have highlighted my comments in Green Colour in the word document and also in the excel sheet whereever I have computed something. ================================================ Regards Download Attachment: 6752969.doc Ask a Tutor my question My Questions * -- Select a subject --AccountingBiologyBusinessChemistryCivil EngineeringComputer ScienceEconomicsElectrical EngineeringEnglishFinanceMathMechanical EngineeringOperations ManagementOther SubjectsPhysicsStatistics and ProbabilityWriting HelpAttach A Document (optional): * Due Date: Choose dateTime: Any12 AM1 AM2 AM3 AM4 AM5 AM6 AM7 AM8 AM9 AM10 AM11 AM12 PM1 PM2 PM3 PM4 PM5 PM6 PM7 PM8 PM9 PM10 PM11 PMmorningafternoonevening Our current time in (CST) is Mon Oct 10 2011 6:46:08 AM Browse all Questions Related Questions My data analysis question...I need an interpretation of the histogram Parcell Company contracted on 4/1/07 to construct a building for \$2,500,000. 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Use this data for the questions... -Mass of tube + MnO2 = 21.5403g -Mass of tube + MnO2 + KClO3 + KCl = 22.5518g -Constant mass of test tube + reaction product = 22.3514g Questions: 1. What is mass of O2 released? (0.2004g) 2. How many moles of O2 were released? (.0063g) 3. How many moles of KClO3 required by the moles of O2 released? (2 moles) 4. What is the mass of KClO3 required? (245.099g) 5. What is the mass of KClO3 & KCl mixture? (.0115g) 6. What is the percent of KClO3 in KClO3 & KCl mixture? 7. If there was 0.5011g of KClO3 in the original mixture, what is the true percent of KClO3? I can figure... Recently Asked Questions Estimate the electric field at a point 2.40 perpendicular to the midpoint of a uniformly charged 2.00--long thin wire carrying a total charge of 4.15 . 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Paper#2643 | Written in 18-Jul-2015

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