Question
a) Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative
a) Rogue Industries reported the following items for the current year: Sales = $3,000,000; Cost of Goods
Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense
= $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Rogue's net profit margin is equal to
b)If the discounted Free Cash Flows for a company after two years of operating = $3500 . and the required rate of return = 10%
Then the undiscounted cash flows would be
c)
DYI Construction Co. is considering a new inventory system that will cost $750,000. The system is expected to generate positive cash flows over the next four years in the amounts of $350,000 in year one, $325,000 in year two, $150,000 in year three, and $180,000 in year four. DYI's required rate of return is 8%. What is the payback period of this projec
d)
If the Profitability Index of a project is 0.7 and the initial outlay = 5000. Then the present value of the project equals
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