Briarcrest Machinery Cost And Cash Flow Analysis
Briarcrestmachinery Cost1931443yearcash Flow14920994303445561871452 2
Briarcrest Machinery Cost Year Cash Flow ..... Discount Rate 14.35 NPV -88538. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $2,131,241. have a life of five years, and would produce the cash flows shown in the following table.
Year Cash Flow 1 $401,102,056 What is the NPV if the discount rate is 15.98 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.) Please enter in the information on the left. The information needed is bolded in purple above. Match YOUR question to the top, and enter in the information respectively.
The final answer is in red color. This example above will 99% of the times NOT match your problems. Contact me if you have any questions at [email protected] Archer Daniels Initial Investment (enter in millions) 12. Years of operation 10 Price after 10 years 5.09 Discount Rate 0.1 Above book value 2.1 Tax rate (as decimal) 0.35 Book value 2.99 Annual Cash Flow PV Factor 0.. PV Factor .
Book Value 5.09 2. Sale Price Asset tax 735000 Present Value .03 NPV .24 Problem 11.20 Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.10 million. This investment will consist of $2.10 million for land and $10.00 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at a price of $5.16 million, $2.48 million above book value.
The farm is expected to produce revenue of $2.09 million each year, and annual cash flow from operations equals $1.97 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.) NPV $ The project should be acceptedrejected The project should be accepted if the NPV is greater than zero. Bell Mountain Year Cost Value of Future Savings at time of purchase Opportunity Cost of Capital 12.2 NPV0 = 2000 NPV1 = 2451 NPV2 = 2780 NPV3 = 3009 NPV4 = 3155 NPV5 = 3234 Bell Mountain should buy the new accounting system the year when the NPV is the highest.
Please enter in the information on the left. The information needed is bolded in purple above. Match YOUR question to the top, and enter in the information respectively. The final answer is in red color. This example above will 99% of the times NOT match your problems.
Contact me if you have any questions at [email protected] Chip's Home Brew Demand of the product 15000 Price of each bottle 20 Price Raise 0..8 Increase in sales 0. Variable Cost per bottle 10 Total fixed cash cost 100000 Depreciation and Amort. 20000 Marginal tax rate 0.3 (enter as decimal) Working Capital 3000 Original With price increase Revenue VC FC D&A EBIT . Tax NOPAT D&A Add WC FCF ANSWER ANSWER Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 93 percent as high if the price is raised 14 percent. Chip’s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000.
Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.) At $20 per bottle the Chip’s FCF is $(ANSWER 1) and at the new price Chip’s FCF is $(ANSWER 2) Please enter in the information on the left. The information needed is bolded in purple above.
Match YOUR question to the top, and enter in the information respectively. The final answer is in red color. This example above will 99% of the times NOT match your problems. Contact me if you have any questions at [email protected] Capital Co. Percent composition Return Debt Preferred Stock 8 12 Common Stock Marginal Tax Rate 40 WACC 12.072 Capital Co. has a capital structure, based on current market values, that consists of 32 percent debt, 8 percent preferred stock, and 60 percent common stock.
If the returns required by investors are 11 percent, 12 percent, and 15 percent for the debt, preferred stock, and common stock, respectively, what is Capital’s after-tax WACC? Assume that the firm’s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Please enter in the information on the left. The information needed is bolded in purple above.
Match YOUR question to the top, and enter in the information respectively. The final answer is in red color. This example above will 99% of the times NOT match your problems. Contact me if you have any questions at [email protected]