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I NEED THE ANSWERS FOR ALL THESE QUESTIONS. YOU NEED TO PROVIDE THE COMPLETE EQUATIONS HOW YOU DONE IT. Name MG 670 Managerial Finance Final

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I NEED THE ANSWERS FOR ALL THESE QUESTIONS. YOU NEED TO PROVIDE THE COMPLETE EQUATIONS HOW YOU DONE IT.

image text in transcribed Name MG 670 Managerial Finance Final Exam Fall 2016 Determine the present value of the following two bonds: 1. Face Amount $5,750,000, Coupon Rate 6%, years to maturity 13, market rate 9% 2. Face Amount $7,550,000, Coupon Rate 4%, years to maturity 16, market rate 2% 3. Net present value: Kingston, Inc. management is considering purchasing a new machine at a cost of $6,137,270. They expect this equipment to produce cash flows of $814,322, $663,275, $637,250, $1,817,112, $1,292,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? 4. Discounted payback: Timeline Manufacturing Co. management is evaluating two projects. The company uses payback criteria of three years or less. Project A has a cost of $1,912,855, and project B's cost is $1,875,000. Cash flows from both projects are given in the following table. What are their discounted payback periods, and which will be accepted with a discount rate of 8 percent? Year 1 2 3 4 Project A $ 186,212 393,562 497,594 485,552 Project B $516,212 613,277 731,199 5. The Vinyl CD Co. is going to take on a project that is expected to increase its EBIT by $80,000, its fixed cost cash expenditures by $125,000, and its depreciation and amortization by $75,000 next year. If the project yields an additional 10 percent in revenue, what percentage increase in the project's EBIT will result from the additional revenue? 6. Cash Flow DOL: For the Vinyl CD Co. in question 5, what percentage increase in pretax operating cash flow will be driven by the additional revenue? Name MG 670 Managerial Finance Final Exam Fall 2016

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