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Brian has S10,000 in a savings account and he deposits $15,000, $16,000, S17,000, and $18,000 at the end of the next 3. four years and

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Brian has S10,000 in a savings account and he deposits $15,000, $16,000, S17,000, and $18,000 at the end of the next 3. four years and no other payments are made into the account that earns 12 percent annually. How much is in the account at the end of year 6? (10 points) Your firm is considering a project that will save the firm $200,000 per year for its 3-year life. The equipment for the will cost $330,000 and will be depreciated using a S-year MACRS schedule. The equipment will be sold for oo0 at the end of the 3-year project. The project will require a working capital investment of $18,000. The tax rate is 34% and the required return is 15% A) What are the operating cash flows for the project? (16 points) B) What is the after-tax salvage of the equipment? C) What is the NPV of the project? 5. Cahill Media is proposing a rights offering, Presemtly there are 650,000 shares outstanding at $38 per share. There will be 130,000 new shares offered at $28 per share. (8 points) What is the new market value of the company? How many rights are needed to purchase one new share? What is the ex-rights price? What is the value of a right? to use $310,000 to repurchase its slock. Currently, there are 550,000 shares outstanding $1.10 per share, and the stock sells for $22.10. How many shares will be outstanding following the Kesler Manufacturing is going to 6. repurchase? (4 points) 7. Hellers Manufacturing has 2,500,000 shares outstanding. The curent the dividend is paid? (4 points) a 25% stock dividend, what would you expect the stock price to be afertheprice isS82 per hare. Ifthe

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