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aws is conteplating... please help me with this excel assignment, i need to know the functions or formulas that are needed to get the answers
aws is conteplating... please help me with this excel assignment, i need to know the functions or formulas that are needed to get the answers to the problem. please help
AWS is contemplating sing up a manufacturing plant to produce a new line of radar items. This is a five-year project. The company bought some and three years ago for SA 5 million in anticipation of using it for waste chemicals. If the land were sold today, the nel proceeds would be 55.5 million after taxes in five years, the land will be worth $ 8 million after taxes. The company was to build its new manufacturing plant on the land, The plant will cost 5212 million to build AWS carries 60,000 bonds with 6.2% coupon rate outstanding. The bonds have 25 years to maturity, selling for 98% of par. The bands have a $1000 par value each and make semiannual payments. AWS current betais 1.15. AWS has 1,350,000 common stock shares outstanding, selling for $97 per share. AWS has 90,000 shares of 5.7% preferred stock outstanding. The preferred stock has a par value of 5100, selling for $95 per share Currently, market conditions are such that the t.bond rate is 3%, and the expected market is premium is 5.0%. The new project is riskier than a typical project at Aws. Management has told you to use an adjustment factor of 2% to account for this increased riskiness. AWS's tax rate is 25. The project requires 5825,000 in initial networking capital investment to get operational All networking capital is recovered at the end of the project AWS uses straight line depreciation. The plant has an 8-year tax life. At the end of years, the plant can be scrapped for 24 . What the required return it AWS makes the westment pas ANSWER- Provide a detailed solution in the designated below, and include weight for each capital and cost of each capital in your answer Please do all the calculation is the excel file using cell reference and excel functions, not coming your calculation by hand here. 8. What is the expected value of the nvestment? (10 points) ANSWER 9 11 12 13 14 15 Provide a detailed solution in the designated below, and include a timeline of individual and totals in your answer Please do all the calculation in the excel file using cell reference and excel functions, not copying your calculation by hand here Should Aws make the bestment? Explan (2) Provide a detailed solution in the designated below, and include a timeline of individual and total Cs in your answer Please do all the calculation in the excel file using cell reference and excel function, not copying your cakulation by hand here. c. Should Aws make the investment? Explain. (2 points) ANSWER PART A Details: Show your cost of capital development (bond, common stock and preferred stock), and the steps to arrive at your solution. PART 8 Details: Show your cash flow development, by year, and the eps to let you orien. 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 + $8 59 60 61 AWS is contemplating sing up a manufacturing plant to produce a new line of radar items. This is a five-year project. The company bought some and three years ago for SA 5 million in anticipation of using it for waste chemicals. If the land were sold today, the nel proceeds would be 55.5 million after taxes in five years, the land will be worth $ 8 million after taxes. The company was to build its new manufacturing plant on the land, The plant will cost 5212 million to build AWS carries 60,000 bonds with 6.2% coupon rate outstanding. The bonds have 25 years to maturity, selling for 98% of par. The bands have a $1000 par value each and make semiannual payments. AWS current betais 1.15. AWS has 1,350,000 common stock shares outstanding, selling for $97 per share. AWS has 90,000 shares of 5.7% preferred stock outstanding. The preferred stock has a par value of 5100, selling for $95 per share Currently, market conditions are such that the t.bond rate is 3%, and the expected market is premium is 5.0%. The new project is riskier than a typical project at Aws. Management has told you to use an adjustment factor of 2% to account for this increased riskiness. AWS's tax rate is 25. The project requires 5825,000 in initial networking capital investment to get operational All networking capital is recovered at the end of the project AWS uses straight line depreciation. The plant has an 8-year tax life. At the end of years, the plant can be scrapped for 24 . What the required return it AWS makes the westment pas ANSWER- Provide a detailed solution in the designated below, and include weight for each capital and cost of each capital in your answer Please do all the calculation is the excel file using cell reference and excel functions, not coming your calculation by hand here. 8. What is the expected value of the nvestment? (10 points) ANSWER 9 11 12 13 14 15 Provide a detailed solution in the designated below, and include a timeline of individual and totals in your answer Please do all the calculation in the excel file using cell reference and excel functions, not copying your calculation by hand here Should Aws make the bestment? Explan (2) Provide a detailed solution in the designated below, and include a timeline of individual and total Cs in your answer Please do all the calculation in the excel file using cell reference and excel function, not copying your cakulation by hand here. c. Should Aws make the investment? Explain. (2 points) ANSWER PART A Details: Show your cost of capital development (bond, common stock and preferred stock), and the steps to arrive at your solution. PART 8 Details: Show your cash flow development, by year, and the eps to let you orien. 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 + $8 59 60 61 Step by Step Solution
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