Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please help me. I want to make sure I have them right. Thank you. QUESTION 12 consider an asset that costs $431,200 and is depreciated

Please help me. I want to make sure I have them right. Thank you. image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
QUESTION 12 consider an asset that costs $431,200 and is depreciated straight line to zero over its 10-year tax life. The asset is to be used in a 4-year project; at the end of the project, the asset can be sold for $53,900. Required :If the relevant tax rate is 33 percent, what is the aftertax cash flow from the sale of this asset? (Do not round your intermediate calculations.) O $121,490.60 O $36,113.00 O $115,416.07 O $925,475.00 O $127,565.13 QUESTION 13 The Down and Out Co. just issued a dividend of $2.06 per share on its common stock. The company is expected to maintain a constant 4 percent growth rate in its dividends indefinitely. If the stock sells for $50 a share, what is the company's cost of equity? (Do not round your intermediate calculations.) O 4.36% O 8.1296 O 8.7% O 7.87% O 8.28% QUESTION 14 Which of the following statements is true? We can use NPV to evaluate two mutually exclusive repeated projects. To make an investment decision based on IRR, we do not need to know the appropriate discount rate. We can use profitability index to evaluate mutually exclusive project. For a given project, NPV and Discounted Payback Period will reach the same decision if the targeted time is infinity. When comparing two mutually exclusive projects using the IRR, we should always pick the one with a higher IRR. QUESTION 15 Please evaluate the equal annual annuity for the following repeated project. The initial investment for the project is $1 million and it will produce cash flows $0.5 million, $1.0 million, $0.8 million in year 1, 2 and 3. The discount rate is 5%. O $302,400 O $368,924 O $456,328 O $394,488 O $583,333

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

The True Value Of Bitcoin Revealed

Authors: Satoshi Nakaloco

1st Edition

More Books

Students also viewed these Finance questions

Question

Just be careful not to make any (stupid) choices this week.

Answered: 1 week ago

Question

We dont make refunds on returned merchandise that is soiled.

Answered: 1 week ago