Youre trying to determine whether to expand your business by building a new manufacturing plant The plant has an installation cost of $11 4 million, which will be depreciated straight line to zero over its four year life If the plant has projected net income of $1,794,300, $1,847,600, $1,816,000, and $1,269,500 over these four years, what is the projects average accounting return (AAR) (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next four years, respectively The discount rate is 15 percent What is the discounted payback period for these cash flows if the initial cost is $6,300 (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $8,400 (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Discounted payback period years What is the discounted payback period for these cash flows if the initial cost is $11,400 (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Discounted payback period years An investment project provides cash inflows of $615 per year for eight years What is the project payback period if the initial cost is $1,750 (Enter 0 if the project never pays back Round your answer to 2 decimal places, e g , 32 16 ) Payback period years What is the project payback period if the initial cost is $3,400 (Enter 0 if the project never pays back Round your answer to 2 decimal places, e g , 32 16 ) Payback period years What is the project payback period if the initial cost is $5,100 (Enter 0 if the project never pays back Round your answer to 2 decimal places, e g , 32 16 ) Payback period years What is the payback period for the following set of cash flows (Round your answer to 2 decimal places, e g , 32 16 ) Year Cash Flow 0 $ 4,900 1 1,250 2 1,450 3 1,850 4 1,350 Red, Inc , Yellow Corp , and Blue Company each will pay a dividend of $2 45 next year The growth rate in dividends for all three companies is 5 percent The required return for each companys stock is 8 percent, 11 percent, and 14 percent, respectively What is the stock price for each company (Do not round intermediate calculations and round your answers to 2 decimal places, e g , 32 16 ) Stock price Red, Inc $ Yellow Corp $ Blue Company The JacksonTimberlake Wardrobe Co just paid a dividend of $1 25 per share on its stock The dividends are expected to grow at a constant rate of 5 percent per year indefinitely Investors require a return of 12 percent on the company's stock What is the current stock price (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Current price $ What will the stock price be in three years (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Stock price $ What will the stock price be in 8 years (Do not round intermediate calculations and round your answer to 2 decimal places, e g , 32 16 ) Stock price $ The next dividend payment by Halestorm, Inc , will be $1 72 per share The dividends are anticipated to maintain a growth rate of 4 percent forever If the stock currently sells for $33 per share, what is the required return (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) The next dividend payment by Halestorm, Inc , will be $1 52 per share The dividends are anticipated to maintain a growth rate of 6 percent forever The stock currently sells for $28 per share What is the dividend yield (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Dividend yield What is the expected capital gains yield (Enter your answer as a percent ) Capital gains yield Tell Me Why Co is expected to maintain a constant 4 6 percent growth rate in its dividends indefinitely If the company has a dividend yield of 6 4 percent, what is the required return on the companys stock (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Moraine, Inc , has an issue of preferred stock outstanding that pays a $5 15 dividend every year in perpetuity If this issue currently sells for $92 per share, what is the required return (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) Required return A firm evaluates all of its projects by applying the IRR rule A project under consideration has the following cash flows Year Cash Flow 0 $ 27,500 1 11,500 2 14,500 3 10,500 If the required return is 16 percent, what is the IRR for this project (Do not round intermediate calculations Enter your answer as a percent rounded to 2 decimal places, e g , 32 16 ) IRR Should the firm accept the project No Yes

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Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.4 million, which

Youre trying to determine whether to expand your business by building a new manufacturing plant. The plant has an installation cost of $11.4 million, which will be depreciated straight-line to zero over its four-year life. If the plant has projected net income of $1,794,300, $1,847,600, $1,816,000, and $1,269,500 over these four years, what is the projects average accounting return (AAR)?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

An investment project has annual cash inflows of $3,600, $4,500, $5,700, and $4,900, for the next four years, respectively. The discount rate is 15 percent.

What is the discounted payback period for these cash flows if the initial cost is $6,300?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $8,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

What is the discounted payback period for these cash flows if the initial cost is $11,400?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Discounted payback period

years

An investment project provides cash inflows of $615 per year for eight years.

What is the project payback period if the initial cost is $1,750?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the project payback period if the initial cost is $3,400?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the project payback period if the initial cost is $5,100?(Enter 0 if the project never pays back. Round your answer to 2 decimal places, e.g., 32.16.)

Payback period

years

What is the payback period for the following set of cash flows?(Round your answer to 2 decimal places, e.g., 32.16.)

Year	Cash Flow
0	$	4,900
1		1,250
2		1,450
3		1,850
4		1,350

Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.45 next year. The growth rate in dividends for all three companies is 5 percent. The required return for each companys stock is 8 percent, 11 percent, and 14 percent, respectively. What is the stock price for each company?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

	Stock price
Red, Inc.	$
Yellow Corp.	$
Blue Company

The JacksonTimberlake Wardrobe Co. just paid a dividend of $1.25 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock.

What is the current stock price?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price

What will the stock price be in three years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

What will the stock price be in 8 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Stock price

The next dividend payment by Halestorm, Inc., will be $1.72 per share. The dividends are anticipated to maintain a growth rate of 4 percent forever. If the stock currently sells for $33 per share, what is the required return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

The next dividend payment by Halestorm, Inc., will be $1.52 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. The stock currently sells for $28 per share.

What is the dividend yield?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Dividend yield

What is the expected capital gains yield?(Enter your answer as a percent.)

Capital gains yield

Tell Me Why Co. is expected to maintain a constant 4.6 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 6.4 percent, what is the required return on the companys stock?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Moraine, Inc., has an issue of preferred stock outstanding that pays a $5.15 dividend every year in perpetuity. If this issue currently sells for $92 per share, what is the required return?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Required return

A firm evaluates all of its projects by applying the IRR rule. A project under consideration has the following cash flows:

Year	Cash Flow
0	$	27,500
1		11,500
2		14,500
3		10,500

If the required return is 16 percent, what is the IRR for this project?(Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

IRR

Should the firm accept the project?

Yes