Iaita oag of in eevted to create opverating cash lows of $26.500 a year for four

Question

Iaita oag of in eevted to create opverating cash lows of $26.500 a year for four years. The whalditional is $62,000. These assets will be worthless at the end of the project projers net ft working capital will be required throughout the life of the project present value if the required rate of return is 12 percent? 11. A project A. $19,208.11 B. $14,028.18 C. $15,306.09 D. $17,396.31 E. $21,954.117 a new maintenance machine and it is analyzing two mutually exclusive will not increase sales revenue, so the company is concerned with 12. Bruno needs to buy machines. These machines cash outflows for maintaining the plant. . The purchase price of Machine A is $290,000 and annual operating co ts of the machine is $8.000, and a 3-year life. The purchase price o Machine B is $180,000 with the equivalent annual operating costs of $12,000, and has a 2-year life. Calculate annual cost of these machines, then recommend a machine to purchase. A. Machine A B. Machine B. C, neither A, nor B D. both A and B 13. Upland Motors just paid a $1.50 per share annual dividend. Dividends are expected to increase by 2 percent annually, and continue indefinitely. What is price this stock today if the appropriate discount rate is 14 percent? A. $12.75 B. $13.04 C. $14.16 D. $13.19 E. $12.25 14. The Merriweather Co. just announced that it pays a dividend of $1.60. The company will then increase its dividend by 10 percent per year for two years, after which it will maintain a constant 2 percent dividend growth rate through infinity. What is the stock worth today at a required rate of return of 14 percent? Hint: Divs Div2 (1.02) A. $21.60 B. $15.70 C. $12.38 D. $23.95 E. $24.79

Explanation / Answer

11.

net present value

=(-62000-3000)+26500/1.12^1+26500/1.12^2+26500/1.12^3+26500/1.12^4+3000/1.12^4

=17396.31

the above is the answer, 3000 would be recovered which was taken as working capital at beginning.

we do only one question based on Chegg rule.

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