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1.Use the following cashflows to find the following if the discount rate is 8% Year 0 1 2 3 4 Cash Flow -10000 500 1500

1.Use the following cashflows to find the following if the discount rate is 8%

Year

0

1

2

3

4

Cash Flow

-10000

500

1500

1500

12000

a.NPV

b.IRR

c.Payback

d.Discount Payback

e.Profitability Index

2.Use the following cashflows to find the MIRR if the discount rate is 7%

Year

0

1

2

3

4

Cash Flow

-10000

2000

-1500

2000

13000

3.By using the following formula, find the Free Cashflow to the Firm for Costco in 2018 (Hint: use Yahoo Finance to get its income statement for two years 2017 and 2018

FCF to the firm (FCFF): EBIT*(1-t)+D&A +/- WC changes - Capital expenditures

4.Tom Brady Inc just bought a Tesla S 100D at $90,000.

a.If it uses straight line method, and expect to have the salvage value of $20,000 after 5 years, what is the residual value after 3 years?

b.If it uses MACRS depreciation method, what is the residual value after 3 years (you can google to find the most updated MACRS depreciation table for 5 years.

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