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3 Company AXR had sales revenues of $48 million last year. Cash operating expenses were $24 million. The depreciation expense was $6 million. The tax

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3 Company AXR had sales revenues of $48 million last year. Cash operating expenses were $24 million. The depreciation expense was $6 million. The tax rate is 40%. No dividends were paid. The stock for company AAK currently selling for $18 per share and there are 3 million shares outstanding. What is the current P/E ratio for , 0.3-36 1/3-6-5 4. 280 labor hours were required to produce the first unit in a production run. 90 labor hours were required to n.3 produce the 5h unit. You have been asked to determine a quote for an order of 7 units. If the labor rate is $25.00 per hour, how much will the labor cost be for this order? 5. The cost of a 110hp generator today is $155,000. The cost of a 6Shp generator 6 years ago was $56,000. The generator equipment index today is 193 and 6 years ago it was 143. Calculate the power sizing exponent for this equipment. 6. You borrowed $125,000 to buy a house. The interest rate is 7% per year, and payments will be made monthly over the next 25 years. How much will you still owe on this loan after 160 payments have been made? ) You borrowed $10,000 and agreed to pay $1000 per year. Interest is 6.5% per year. You do not make payments in years 6 and 7. You begin making payments again in year 8, with the payment amount now being $1500, What will be the amount of the last payment on this loar? 5)-2 00 o0O 8. You plan to retire in 25 years. You are going to deposit an amount beginning one year from now and ending at the end of year 25. At the end of your first year of retirement you plan to withdraw $80,000, and make an ad.a withdrawal for each of the next 15 years. You believe you can invest at 12% lfeach deposit over the next dditio will be the same amount each year, how much does it need to be? years 9. You have Just won a lottery that promisesyou S70 000 per year forthe rest of your life. Alternatively, take a lump sum payment today. Assuming that you are going to life forever and that the interest rate is should the lump sum be? you 8.0% can , 10. $1500 deposited today be worth in 15 years? Money is invested at 11.5% nominal annual rate, Interested is compounded twice per year. How much wil

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