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Given Incremental revenue growth for years 1-5

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Given;Incremental revenue growth for years 1-5;Revenues (current);Incremental Revenues;CAPEX for year 0;CAPEX for years 1-5;Maintenance expense for years 1-5;Depreciable life of ovens;Depreciation Expense;Tax rate;Discount Rate;Solution Legend;10.0%;$9,000,000;$900,000;$1,860,000;$$120,000 per year;5 years;= Value given in problem;= Formula/Calculation/Analysis required;= Qualitative analysis or Short answer required;= Goal Seek or Solver cell;= Crystal Ball Input;= Crystal Ball Output;30%;9%;Solution;Year;0;Incremental Revenues;Incremental Depreciation;Incremental maintenance expense;Incremnental EBIT;Taxes;NOPAT;Plus: Depreciation;Less: CAPEX;Less: New working capital needs;Project Free Cash Flow (PFCF);Net Present Value;Internal Rate of Return;1;$900,000;-;2;$900,000;-;3;$900,000;-;4;$900,000;-;5;$900,000;-;-;PROBLEM 4-8;Given;Levered equity beta;Treasure bond yield;Market risk premium;Tax rate;Debt as % of Capital Structure;Solution Legend;1.25;4.28%;3.50%;25.00%;25.00%;7.00%;Solution;a.;Cost of equity;b.;Low ERP High ERP;WACC with Low ERP;Cap Str;After-Tax;Product;Weights;Costs;Debt;25.00%;Equity;75.00%;WACC with High MRP;Cap Str;After-Tax;Product;Weights;Cost;Debt;25.00%;Equity;75.00%;= Value given in problem;= Formula/Calculation/Analysis required;= Qualitative analysis or Short answer required;= Goal Seek or Solver cell;= Crystal Ball Input;= Crystal Ball Output;PROBLEM 5-7;Given;Cost of equity;After-tax cost of debt;Debt to value;WACC;12.00%;4.80%;40.00%;9.12%;Solution;a. Project New (Omaha);Investment;Debt capacity;Operating costs;D/V at capacity;Project WACC;Project Modernize (Charleston);Investment;Debt capacity;Operating costs;D/V at capacity;Project WACC;b.;Project WACC;$50,000,000;$12,000,000;low;$30,000,000;$5,000,000;high;Solution Legend;= Value given in problem;= Formula/Calculation/Analysis required;= Qualitative analysis or Short answer required;= Goal Seek or Solver cell;= Crystal Ball Input;= Crystal Ball Output;PROBLEM 6-11;Solution Legend;Given;In Millions of $;Cash & Equivalents;Short Term Investments;Cash and Short Term Investments;Accounts Receivable;Inventories;Total Current Assets;Accounts Payable;Accrued Expenses;Notes Payable/Short Term Debt;Current Port. of LT Debt;Total Current Liabilities;Solution a;Operating Current Assets;Operating Current Liabilities;Operating Net Working Capital;Solution b;Change in Operating Net Working Capital;Solution c;2010;$807,926;178,994;986,920;2,028,060;1,456,271;4,471,251;2009;$560,960;197,408;758,368;2,365,823;1,441,024;4,565,215;2008;$617,866;182,442;800,308;2,341,609;1,450,258;4,592,175;2007;$658,255;614,513;1,272,768;2,302,447;1,262,308;4,837,523;1,138,770;878,454;1,038,633;531,635;$3,587,492;1,601,413;901,546;789,285;386,879;$3,679,123;1,584,959;902,164;979,675;303,214;$3,770,012;1,416,367;863,683;821,126;248,028;$3,349,204;= Value given in problem;= Formula/Calculation/Analysis required;= Qualitative analysis or Short answer required;= Goal Seek or Solver cell;= Crystal Ball Input;= Crystal Ball Output;View Full Attachment;Additional Requirements;Min Pages: 4;Level of Detail: Show all work

 

Paper#29746 | Written in 18-Jul-2015

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