Answered step by step
Verified Expert Solution
Question
1 Approved Answer
how do i solve these with a financial calculator Given the information of a project, answer questions 17 through 22: Cost of equipment =$500,000 Shipping
how do i solve these with a financial calculator
Given the information of a project, answer questions 17 through 22: Cost of equipment =$500,000 Shipping and installation =$15,000 $20,000 in net working capital required at setup 5-year project life, 10-year class life Simplified straight line depreciation Revenues will increase by $200,000 per year Operating costs will rise by \$15,000 per year Salvuge value after year 5 is $300,000 Discount rate =13%, marginal tax rate =34% 17. The initial outhy in year 0 is A. $500,000. B. $515,000. C. $590,000. (D) $535.000. 18. The annual eash flow from year 1 through 5 is A. $88,110. B. $157,120. (C) $139,610d D. \$189,658. 19. The terminul cash flow in year 5 is (4). $305,550 B. $46,690 C. $20,900. D. $0. 20 The NPV of the project is (d). $121,881= B. $24,664. C. $58,590. D. $58,590. 21. Are you going to accept the project? (d) Yes B. No C. Depends on IRR 22. Suppose you invested $56 in the Ishares Dividend Stock Fund (DVY) a month ago. It paid yat dividend of 50.37 todiry and then you sold it for $61. What was your return on the (investment? A 9.01% B 9.98% D 8.80% Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started