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16) From the latest financials for my company, I extracted the following information for my boss: Total Assets: $1,200,000 Total Equity: $ 650,000 Total
16) From the latest financials for my company, I extracted the following information for my boss: Total Assets: $1,200,000 Total Equity: $ 650,000 Total Sales: $6,000,000 Net Profit: $ 480,000 From this little bit of information, my boss tells me she can calculate out my company's Return on Assets (ROA), Return on Equity (ROE, Total Liabilities, and Debt Ratio. Is she correct? If so, calculate out these four ratios/items but if she is incorrect tell me what information is missing? (30 Points) 17) I am evaluating a project that has the following cash flows: CFO: $2,500,000 CF1: $ 700,000 CF2: $ 800,000 CF3: $ CF4: $ 900,000 700,000 My cost of capital is 5.4%. Calculate the Internal Rate of Return (IRR) for this project and tell me if I should pursue it. (10 pts)
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