Question
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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