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ACCT5735 final exam 2

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Question;Question #10 (10 points)Consider the following potential investment, which has the same risk as the firm?s other projects:Time Cash Flow0 -$170,0001 $58,0002 $63,0003 $67,0004 $68,000The firm?s current weighted-average cost of capital is 14%.a) How much value will this investment create for the firm?b) At what discount rate will this project break even?c) Should the firm do this investment? Be sure to justify your recommendation.d) How would your analysis change if this potential investment was more risky than the firm?s other projects? Be specific.for the below questions use the excelQuestion #5 (6 points)Using the financial statements provided on Blackboard, calculate and interpret the days to collect ratio. Assume credit sales are 15% of total net sales.QuestionUsing the financial statements provided on Blackboard, calculate and interpret the days to sell and gross profit ratios.QuestionUsing the financial statements provided on Blackboard, calculate and interpret the current liabilities ratios (including cash cycle) we discussed in class.QuestionUsing the financial statements provided on Blackboard, calculate and interpret the long-term liabilities ratios we discussed in class.

 

Paper#40455 | Written in 18-Jul-2015

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