Finance data bank 39160 | Business & Finance homework help


 

61.Last month, Lloyd's Systems analyzed the device whose money streams are shown beneath. However, precedently the judgment to recognize or repudiate the device, the Federal Reserve took possessions that transitional share rates and for-this-reason the strong's WACC. The Fed's possession did not feign the forecasted money streams. By how ample did the vary in the WACC feign the device's forecasted NPV? Note that a device's deviceed NPV can be privative, in which condition it should be repudiateed.

Old WACC:

10.00%

 

New WACC:

12.50%

Year

0

1

2

3

Cash streams

-$1,000

$410

$410

$410

62.Lasik Vision Inc. recently analyzed the device whose money streams are shown beneath. However, precedently Lasik strong to recognize or repudiate the device, the Federal Reserve took possessions that transitional share rates and for-this-reason the strong's WACC. The Fed's possession did not feign the forecasted money streams. By how ample did the vary in the WACC feign the device's forecasted NPV? Note that a device's deviceed NPV can be privative, in which condition it should be repudiateed.

Old WACC:

8.00%

 

New WACC:

8.50%

Year

0

1

2

3

Cash streams

-$1,000

$410

$410

$410

63.Ehrmann Reason Systems is regarding a device that has the forthcoming money stream and WACC reason. What is the device's MIRR? Note that a device's deviceed MIRR can be c facilitate than the WACC (and uniform privative), in which condition it get be repudiateed.

WACC:

8.75%

 

 

 

Year

0

1

2

3

Cash streams

-$1,000

$450

$450

$450

 

64.Ingram Electric Products is regarding a device that has the forthcoming money stream and WACC reason. What is the device's MIRR? Note that a device's deviceed MIRR can be c facilitate than the WACC (and uniform privative), in which condition it get be repudiateed.

WACC:

14.75%

 

 

 

Year

0

1

2

3

Cash streams

-$800

$350

$350

$350

65.Malholtra Inc. is regarding a device that has the forthcoming money stream and WACC reason. What is the device's MIRR? Note that a device's deviceed MIRR can be c facilitate than the WACC (and uniform privative), in which condition it get be repudiateed.

WACC:

10.00%

 

 

 

 

Year

0

1

2

3

4

Cash streams

-$1,175

$300

$320

$340

$360

66.Hindelang Inc. is regarding a device that has the forthcoming money stream and WACC reason. What is the device's MIRR? Note that a device's deviceed MIRR can be c facilitate than the WACC (and uniform privative), in which condition it get be repudiateed.

WACC:

13.25%

 

 

 

 

Year

0

1

2

3

4

Cash streams

-$850

$300

$320

$340

$360

67.Stern Associates is regarding a device that has the forthcoming money stream reason. What is the device's payback?

Year

0

1

2

3

4

5

Cash streams

-$750

$300

$310

$320

$330

$340

68.Fernando Designs is regarding a device that has the forthcoming money stream and WACC reason. What is the device's discounted payback?

WACC:

10.00%

 

 

 

Year

0

1

2

3

Cash streams

-$950

$500

$500

$500

69.Masulis Inc. is regarding a device that has the forthcoming money stream and WACC reason. What is the device's discounted payback?

 

WACC:

10.00%

 

 

 

 

Year

0

1

2

3

4

Cash streams

-$700

$525

$485

$445

$405

70.Tesar Chemicals is regarding Projects S and L, whose money streams are shown beneath. These devices are mutually detested, identical foolhardy, and not repeatable. The CEO believes the IRR is the best preoption touchstone, suitableness the CFO advocates the NPV. If the judgment is made by choosing the device after a timeliness the better IRR rather than the one after a timeliness the better NPV, how ample, if any, esteem get be forgone, i.e., what's the selected NPV versus the culmination feasible NPV? Note that (1) "true esteem" is measured by NPV, and (2) inferior some provisions the exquisite of IRR vs. NPV get own no commodities on the esteem gained or obsolete.

WACC:

6.75%

 

 

 

 

 

0

1

2

3

4

CFS -$1,100

$550

$600

$100

$100

CFL

-$2,700

$650

$725

$800

$1,400

71.A strong is regarding Projects S and L, whose money streams are shown beneath. These devices are mutually detested, identical foolhardy, and not repeatable. The CEO wants to use the IRR touchstone, suitableness the CFO favors the NPV arrangement. You were remunerated to warn the strong on the best act. If the evil-doing judgment touchstone is used, how ample undeveloped esteem would the strong facilitate?

WACC:

7.75%

 

 

 

 

 

0

1

2

3

4

CFS -$1,025

$380

$380

$380

$380

CFL

-$2,150

$765

$765

$765

$765

72.Sexton Inc. is regarding Projects S and L, whose money streams are shown beneath. These devices are mutually detested, identical foolhardy, and not repeatable. If the judgment is made by choosing the device after a timeliness the better IRR, how ample esteem get be forgone? Note that inferior sure provisions choosing devices on the reason of the IRR get not inducement any esteem to be obsolete beinducement the one after a timeliness the better IRR get so own the better NPV, so no esteem get be obsolete if the IRR arrangement is used.

WACC:

15.25%

 

 

 

 

 

0

1

2

3

4

CFS -$2,050

$750

$760

$770

$780

CFL

-$4,300

$1,500

$1,518

$1,536

$1,554

 

73.Moerdyk& Co. is regarding Projects S and L, whose money streams are shown beneath. These devices are mutually detested, identical foolhardy, and not repeatable. If the judgment is made by choosing the device after a timeliness the better IRR, how ample esteem get be forgone? Note that inferior sure provisions choosing devices on the reason of the IRR get not inducement any esteem to be obsolete beinducement the one after a timeliness the better IRR get so own the better NPV, i.e., no engagement get halt.

WACC:

11.50%

 

 

 

 

 

0

1

2

3

4

CFS -$1,025

$650

$450

$250

$50

CFL

-$1,025

$100

$300

$500

$700