Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

(Estimated time allowance: 3 inutes) Is the payback period discounting cash flows) of the following ten-year project. The initial after-tax outlay or after-tax cost is

image text in transcribed
image text in transcribed
image text in transcribed
(Estimated time allowance: 3 inutes) Is the payback period discounting cash flows) of the following ten-year project. The initial after-tax outlay or after-tax cost is $1,000,000. The future after-tax cash inflows each year for years 1 through 10 are $200,000 per year. What is the payback period without discounting cash flows? 1) 0.5 years 2) 5 years 3) 10 years 4) 2.5 years (Estimated time allowance of high-priced TV sets. It is estimated that the annual sales for this high-priced units. BlueT Corp. has one existing line of low-priced TV sets. BlueT is currently selling 8,000 low-priced units a year at a price of $470. The variable costs is $110 per unit. It is estimated that the sales of the existing low-priced TV sets will go up by 130 units a year with the introduction of the new highe-priced unit. What is the value of the synergies to be considered when estimating the OCFs for the new high- priced TV sets project? Do not use the S sign. Use commas to separate thousands. Round to two nearest dollar. For example if you obtain $1,432.728 then enter 1,434 or if you obtain $1,120.1321 then enter 1.120 Your Answer: Answer (Estimated time allowance: 8 minutes) You want to build a portfolio using two available risky assets: Asset B has a beta of 0.8 and an expected return of 8.6%; Asset A has a beta of 1.6 and an expected return of 13%. You want the portfolio formed with these two assets to have an expected return of 10%. What proportion of the portfolio must be invested in the Asset A? ** Provide answer in decimal terms and round to 2 digits. Please include the 0 and dot before the decimals. Examples: If your result is 0.125, enter 0.13; if your result is 0.500, then enter 0.50; if you result is 0.333, then enter 0.33 Your

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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_2

Step: 3

blur-text-image_3

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

Equity Valuation Risk And Investment A Practitioners Roadmap

Authors: Peter C. Stimes

1st Edition

0470226404, 9780470226407

More Books

Students also viewed these Finance questions