FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Atech Industries has initial resources of 150 million USD. Optimal operation requires an investment of 200 million USD. The firm must raise 50 million USD

Atech Industries has initial resources of 150 million USD. Optimal operation requires an investment of 200 million USD. The firm must raise 50 million USD additional capital borrowing from the markets. Management projects 200 million USD investment (Optimal time 1 investment required) will generate 330 million USD cash flow at time 2. Market interest rate is 8%. Assume no dividend is paid at time 1. 


What is the closest present value of the Atech Industries in millions USD with this project at time 1 with the investment taking place in full?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

To calculate the present value of the project we can use the ne... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managing Business Ethics Making Ethical Decisions

Managing Business Ethics Making Ethical Decisions

Authors: Alfred A. Marcus, Timothy J. Hargrave

1st Edition

1506388590, 978-1506388595

More Books

Students also viewed these Finance questions

Question

★★★★★
Read the case study "Southwest Airlines," found in Part 2 of your textbook. Review the "Guide to Case Analysis" found on pp. CA1 - CA11 of your textbook. (This guide follows the last case in the...

Answered: 1 week ago

Question

★★★★★
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Answered: 1 week ago

Question

★★★★★
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...

Answered: 1 week ago

Question

★★★★★
A transparent rod 30.0 cm long is cut flat at one end and rounded to a hemispherical surface of radius 10.0 cm at the other end. A small object is embedded within the rod along its axis and halfway...

Answered: 1 week ago

Question

★★★★★
Note the ionic radii and ionic charges of the eight most common ions in the earths crust in Table 2.1. Which pairs of ions have very similar sizes and charges and can substitute easily for each other...

Answered: 1 week ago

Question

★★★★★
Rearrange and isolate the indicated variables.AppendixLO1 tin S P(1 + rt) =

Answered: 1 week ago

Question

★★★★★
1. Establish private cubicles for individual work, open tables for group work, and cushions on the floor for whole-class meetings.

Answered: 1 week ago

Question

★★★★★
Multiple Choice Questions Indicate the best answer for each of the following: 1. For the spring semester of 20X4, Lane University assessed its students $3,400,000 (net of refunds) of tuition and fees...

Answered: 1 week ago

Question

★★★★★
Consider an asset with a beta of 1.2, a risk-free rate of 5%, and a market return of 13%. What is the reward-to-risk ratio in equilibrium? What is the expected return on the asset?

Answered: 1 week ago

Question

★★★★★
Identify and describe your current life stage. How does your current age or life stage affect your financial thinking and behavior? To what extent and in what ways does your financial thinking...

Answered: 1 week ago

Question

★★★★★
Service Department Charges In divisional income statements prepared for Iguana Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of...

Answered: 1 week ago

Question

★★★★★
20. A charge of 10 nC is kept at the centre of a square of side 2 m. What would be the potential at the vertices of the square ABCD? Also, find the work done in moving a charge of 5 C from A to C.

Answered: 1 week ago

Question

★★★★★
22. A hollow cylindrical box of length 1 m and area of cross-section 25 cm is placed in a three dimensional co-ordinate system as shown in Fig. 3.63. The electric field in the region is given by...

Answered: 1 week ago

Question

★★★★★
23. Determine (VA - VB) potential difference from the following figure 3.64. (UP 2016) +9 A B -x- X Fig. 3.64

Answered: 1 week ago

Question

★★★★★
Bill has 30.00 more than Alan, but then Alan wins some money on lotto and trebles his money, which means that henow has 20 more than the original amount of money thatthe two men had between them. How...

Answered: 1 week ago

Question

★★★★★
Calculate the warrant premium with the information given below. Warrant price - $50 Exercise price - $120 Current share price - $125 Select an option Clear Response $45 $55 $25 $75

Answered: 1 week ago

Question

★★★★★
Using the percentage-of-receivables basis, the uncollectible accounts for the year is estimated to be $33,000. If the balance for the Allowance for Doubtful Accounts is a $5,000 debit before...

Answered: 1 week ago

Question

★★★★★
Comptech Ltd is a manufacturer of optical equipment. In September 2019, Ed Thompson the Chief Research Officer, attended a conference in Switzerland that focused on optical developments for the 21st...

Answered: 1 week ago

Question

★★★★★
The year is 2025, and nearly 20% of all vehicles on the road are autonomously driven (selfdriving). The government has established strict guidelines for the algorithms that run these vehicles. In the...

Answered: 1 week ago

Question

★★★★★
You have worked together with three other stock brokers in the same company for the past 12 years. The four of you are the best of friends, with strong personal ties going back 30 years; you grew up...

Answered: 1 week ago

Question

★★★★★
Multinational oil company ExxonMobil faced many challenges related to climate change. Climate change is taking place because of the greenhouse effect. When solar radiation passes through the...

Answered: 1 week ago

Question

★★★★★
Price increases from $10 to $20. Demand is ______ and total revenue ______.

Answered: 1 week ago

Question

★★★★★
Three points are identified on the graph in Figure 4P-1. a. At point A, demand is ____. b. At point B, demand is ____. c. At point C, demand is ____.

Answered: 1 week ago

Question

★★★★★
You have noticed that the price of tickets to your universitys basketball games keeps increasing but the supply of tickets remains the same. Why might supply be unresponsive to changes in price?

Answered: 1 week ago

Previous Question Next Question