Your portfolio has a beta of 1.45. The portfolio consists of 15 percent U.S. Treasury bills, 31 percent stock A, and 54 percent stock B

1- Your portfolio has a beta of 1.45. The portfolio consists of 15 percent U.S. Treasury bills, 31 percent stock A, and 54 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B?
2-Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.88 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt–equity ratio of 0.85, a cost of equity of 12.8 percent, and an aftertax cost of debt of 5.6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 2 percent to the cost of capital for such risky projects.

What is the maximum initial cost the company would be willing to pay for the project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)
3- You are given the following information for Lightning Power Co. Assume the company’s tax rate is 35 percent.

Debt:

6,000 6.7 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 103 percent of par; the bonds make semiannual payments.

Common stock: 390,000 shares outstanding, selling for $57 per share; the beta is 1.13.

Preferred stock:

17,000 shares of 4 percent preferred stock outstanding, currently selling for $77 per share.

Market: 6 percent market risk premium and 4.70 percent risk-free rate.

What is the company’s WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))
4- Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $28.

Calls Puts
Strike
Option Expiration Price Vol. Last Vol. Last
Macrosoft Feb 30 86 0.33 41 1.33
Mar 30 62 0.57 23 1.74
May 30 23 0.85 12 2.16
Aug 30 4 1.06 4 2.20

a.

Suppose you buy 11 contracts of the February 30 call option. How much will you pay, ignoring commissions?

Cost $

Suppose you buy 11 contracts of the February 30 call option. Macrosoft stock is selling for $31 per share on the expiration date.

b-1 How much is your options investment worth?

Payoff $

b-2 What if the terminal stock price is $30?

Payoff $

Suppose you buy 11 contracts of the August 30 put option.

c-1 What is your maximum gain?

Maximum gain $
c-2

On the expiration date, Macrosoft is selling for $24 per share. How much is your options investment worth?

Position value $

c-3 On the expiration date, Macrosoft is selling for $24 per share. What is your net gain?

Net gain $

Suppose you sell 11 of the August 30 put contracts.

d-1

What is your net gain or loss if Macrosoft is selling for $26 at expiration? (Loss amount should be indicated by a minus sign.)

$

d-2

What is your net gain or loss if Macrosoft is selling For $32 at expiration? (Loss amount should be indicated by a minus sign.)

$

d-3

What is the break-even price? (Round your answer to 2 decimal places. (e.g., 32.16))

Break-even $
5- The treasurer of a major U.S. firm has $27 million to invest for three months. The interest rate in the United States is 0.27 percent per month. The interest rate in Great Britain is 0.31 percent per month. The spot exchange rate is £0.627, and the three-month forward rate is £0.630.

What would be the value of the investment if the money is invested in U.S and Great Britain? (Enter your answer in thousands of dollars, not in millions. (e.g., 1,234,567). Round your answer to 2 decimal places. (e.g., 32.16))

U.S. $
Great Britain $
6- Lakonishok Equipment has an investment opportunity in Europe. The project costs €12 million and is expected to produce cash flows of €2.0 million in Year 1, €2.4 million in Year 2, and €3.5 million in Year 3. The current spot exchange rate is $1.35/€; the current risk-free rate in the United States is 2.8 percent, compared to that in Europe of 2.0 percent. The appropriate discount rate for the project is estimated to be 14 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated €9.0 million.

What is the NPV of the project? (Enter your answer in thousands of dollars, not in millions. (e.g., 1,234,567). Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

NPV $

Data Case Today is April 30, 2012, and you have just started your new job with a financial planning firm

Data Case Today is April 30, 2012, and you have just started your new job with a financial planning firm. In addition to studying for all your license exams, you have been asked to review a portion of a client’s stock portfolio to determine the risk/return profiles of 12 stocks in the portfolio. Unfortunately, your small firm cannot afford the expensive databases that would provide all this information with a few simple keystrokes, but that’s why they hired you. Specifically, you have been asked to determine the monthly average returns and standard deviations for the 12 stocks for the past five years. In the following chapters, you will be asked to do more extensive analyses on these same stocks. The stocks (with their symbols in parentheses) are:

Archer Daniels Midland (ADM)
Boeing (BA)
Caterpillar (CAT)
Deere & Co. (DE)
General Mills, Inc. (GIS)
Google Inc. (GOOG)
Hershey (HSY)
International Business Machines
Corporation (IBM)
JPMorgan Chase & Co. ( JPM)
Microsoft (MSFT)
Procter and Gamble (PG)
Wal-Mart (WMT)
1. Collect price information for each stock from Yahoo! Finance (finance.yahoo.com) as follows:

a. Enter the stock symbol. On the page for that stock, click “Historical Prices” on the left side of
the page.

b. Enter the “start date” as April 30, 2007 and the “end date” as April 30, 2012 to cover the five year period. Make sure you click “monthly” next to the date.

c. After hitting “Get Prices,” scroll to the bottom of the first page and click “Download to
Spreadsheet.” If you are asked if you want to open or save the file, click open.

d. Copy the entire spreadsheet, open Excel, and paste the Web data into a spreadsheet. Delete all
the columns except the date and the adjusted close (the first and last columns).

e. Keep the Excel file open and go back to the Yahoo! Finance Web page and hit the back
button. If you are asked if you want to save the data, click no.

f. When you return to the prices page, enter the next stock symbol and hit “Get Prices” again.
Do not change the dates or frequency, but make sure you have the same dates for all the stocks
you will download. Again, click “Download to Spreadsheet” and then open the file. Copy
the last column, “Adj. Close,” paste it into the Excel file and change “Adj. Close” to the stock
symbol. Make sure that the first and last prices are in the same rows as the first stock.

g. Repeat these steps for the remaining 10 stocks, pasting each closing price right next to the
other stocks, again making sure that the correct prices on the correct dates all appear on the
same rows.

2. Convert these prices to monthly returns as the percentage change in the monthly prices. (Hint : Create
a separate worksheet within the Excel file.) Note that to compute a return for each month, you
need a beginning and ending price, so you will not be able to compute the return for the first month.

3. Compute the mean monthly returns and standard deviations for the monthly returns of each of
the stocks.16 Convert the monthly statistics to annual statistics for easier interpretation (multiply
the mean monthly return by 12, and multiply the monthly standard deviation by 212).

4. Add a column in your Excel worksheet with the average return across stocks for each month. This
is the monthly return to an equally weighted portfolio of these 12 stocks. Compute the mean
and standard deviation of monthly returns for the equally weighted portfolio. Double check that
the average return on this equally weighted portfolio is equal to the average return of all of the
individual stocks. Convert these monthly statistics to annual statistics (as described in Step 3) for
interpretation.

5. Using the annual statistics, create an Excel plot with standard deviation (volatility) on the x-axis and average return on the y-axis as follows:

a. Create three columns on your spreadsheet with the statistics you created in Questions 3 and
4 for each of the individual stocks and the equally weighted portfolio. The first column will
have the ticker, the second will have annual standard deviation, and the third will have the
annual mean return.

b. Highlight the data in the last two columns (standard deviation and mean), choose
Insert7Chart7XY Scatter Plot. Complete the chart wizard to finish the plot.

6. What do you notice about the average of the volatilities of the individual stocks, compared to the volatility of the equally weighted portfolio?
————————————————————————————

The State of Illinois is considering a highway project that is expected to provide benefits in the form of time savings associated with speedier commute and safer driving conditions

The State of Illinois is considering a highway project that is expected to provide benefits in the form of time savings associated with speedier commute and safer driving conditions. The cost of materials for the road is expected to be $100 million. The average cost of labor for construction of the road is $30 per hour for 1,125,000 hours of total labor. The state will need to operate and maintain the road which will cost it $5 million per year. The road is expected to save 20 lives per year. On average, people are expected to accumulate $2 million in earnings over their life span. By building the road, it is expected to save 15 minutes on average per trip. It is expected that there will be 1,000,000 trips on the road per year with an average salary of $80,000 per driver based on 2,000 work hours per year. Assuming a discount rate of 5%, perform a cost benefit analysis on this proposed project over a 4 year period providing a recommendation and numerical justification for your recommendation

The final project for this course is the creation of an Excel spreadsheet model that shows the consolidation worksheet

ACC 690: Final Project Guidelines and Rubric: Overview The final project for this course is the creation of an Excel spreadsheet model that shows the consolidation worksheet, intercompany elimination entries, other consolidation entries, and the final income statement and balance sheet for a sample parent and subsidiary company. The project is divided into three milestones , which will be submitted at various points throughout the course to scaffold learning and ensure quality final submissions. These milestones will be submitted in Modules Four, Seven, and Nine. Assume the following when completing the project: Assume that the parent owned the subsidiary for the entire year for which financial statements are being prepared. The scenario indicates that as of December 31, there is a difference between book value and fair value for inventory and depreciable assets. Assume that these differences existed at the date of acquisition. Record only the differential and do not worry about amortization of the differential. Prepare the consolidation worksheet using the equity method. Assume that the trial balance was prepared prior to any entry the parent company made to record the net loss from the subsidiary. Guidelines The Model Assignment:  Students will be given the description of a parent company and a subsidiary company along with the two firms’ trial balances at book value as of December 31, 2012, the end of the year for both firms (see Company Information below).  The financial data will be presented in English pounds (£) as local currency.  Other data pertaining to the consolidation is also to be provided.  The student will analyze the data for purpose of consolidation.  The student will create a useful Excel model that shows the consolidation worksheet, intercompany elimination entries, other consolidation entries, and the final income statement and balance sheet.  Using the consolidated financial statements created, students will then use Excel modeling to translate the consolidated income statement and balance sheet from English pounds to U.S. dollars based on exchange rates provided (the U.S. dollar is the functional currency). Requirements:  This project should be prepared as a report for your supervisor.  The report should be visually pleasing.  As many computations as possible should be done by the model with the exception of entering the original financial statement data.  The report should utilize “macros” and other built-in features found in Excel.
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Thomas Train has collected the following information over the last six months.

Thomas Train has collected the following information over the last six months.

Month Units produced Total costs
March 10,000 $25,600
April 12,000 26,200
May 19,800 28,000
June 13,000 26,450
July 12,000 26,000
August 15,000 26,500
Using the high-low method, what is the variable cost per unit?

Your Answer:
Question 1 options:

Answer
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Question 2 (1 point) Question 2 Unsaved
Rooter’s Cleaning Services provided data concerning the costs incurred to clean hotel rooms for which hotel customers pay $150 per night. Data for the past 7 months are as follows:

January February March April May June July
Number of rooms cleaned 250 160 200 150 285 170 260
Cleaning cost $6,450 $4,060 $5,100 $4,100 $6,760 $4,200 $6,530
How much are estimated monthly variable costs using the high-low method?

Your Answer:
Question 2 options:

Answer
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Question 3 (1 point) Question 3 Unsaved
A cost is $3,600 at 1,000 units, $7,000 at 2,000 units, and $9,200 at 3,000 units. This cost is a

Question 3 options:

mixed cost

step cost

variable cost

fixed cost

Save
Question 4 (1 point) Question 4 Unsaved
Winny’s Office Furniture has a contribution margin ratio of 16%. If fixed costs are $182,300, how many dollars of revenue must the company generate in order to reach the break-even point?

Your Answer:
Question 4 options:

Answer
Save
Question 5 (1 point) Question 5 Unsaved
Tim Taylor has written a self improvement book that has the following cost characteristics:

Selling Price $16.00 per book
Variable cost per unit:
Production $4.00
Selling & administrative 2.00
Fixed costs:
Production $88,600 per year
Selling & administrative 24,300 per year
How many units must be sold to break-even?

Your Answer:
Question 5 options:

Answer
Save
Question 6 (1 point) Question 6 Unsaved
The use of fixed cost to increase profits at a rate faster than sales increase is called:

Question 6 options:

“What if “ analysis

C-V-P analysis

operating leverage

contribution margin approach

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Question 7 (1 point) Question 7 Unsaved
Assume Sparkle Co. expects to sell 150 units next month. The unit sales price is $100, unit variable cost is $45, and the fixed costs per month are $5,000. The margin of safety is:

Your Answer:
Question 7 options:

Answer
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Question 8 (1 point) Question 8 Unsaved
Which of the following statements about the relevant range is true?

Question 8 options:

Cost functions outside the relevant range are usually linear

The relevant range is the normal length of time in a company’s accounting period

Estimates outside the relevant range are useful

Cost functions within the relevant range are assumed to be linear

The price of a stock is currently $30. The price of a two­ year European call option on the stock with a strike price of $40 is $15

Q1. The price of a stock is currently $30. The price of a two­ year European call option on the
stock with a strike price of $40 is $15 and the price of a two ­year European put option on the stock with a strike price of $20 is $12.
Suppose that an investor buys 100 shares of stock, shorts 100 call options, and buys 100 put options. Construct a table showing the investor’s profit (not payoff) as a function of the stock price at expiration. The difference between profit and payoff is explained in week 1. In addition, please
remember that when the investor shorts an option, he receives the option price upfront. For example, if you short sell 1 call option, you will receive $15 today.
Hints: To answer part a, construct a column in Excel of stock prices at expiration ranging from $1 to $60 in increments of $1. Then use the next 3 columns to calculate the stock, call, put profits (one column for each position). Pay attention to whether the investor is taking a long or a short position of the option. Then add all the profits from these three positions (stock, call, put). Finally, use Excel to graph the portfolio profit (y ­axis) as a function of stock price (x­axis). Specifically, use scatter plot in Excel. If you don’t know how, then type “scatter plot” in Excel help and follow the instruction. Your profit for long put option should look similar to Figure 9.2 in page 213 and the profit for short call should look similar to figure 9.3.

b. The set of actions in part A is called a “collar” strategy. Explain when an investor is likely to use this collar strategy.

c. Suppose now that the investor buys 100 stocks, shorts 200 call options, and buys 200 put options. Construct a table showing the investor’s profit or loss as a function of the stock price at expiration. Graph the portfolio profit as a function of stock price. The total profit should look like a zigzag (down/up/down) pattern.

Q3: If you exercise an in­ the ­money call option, you will make a profit. Explain whether this is true or false.

Q2: What are the differences between (a) exchange ­traded call options and (b) warrants/employee stock options/convertibles?

Q4. The current price of a stock is $94, and a three­month European call option with a
strike price of $95 currently sells for $4.70. An investor who feels that the price of the stock will
increase is trying to decide between investing in 100 stocks and investing in 2,000 call options (20 contracts) for 3 months. Both strategies cost an initial investment of $9,400. How high does the stock price have to rise in3 months for the option strategy to be more profitable than the stock strategy? In other words, at what stock price, will the 2 strategies result in the same profit?

TCO 1) Which of the following are capital structure concerns?

TCO 1) Which of the following are capital structure concerns?

I. how to obtain short-term financing
II. the company’s financing mix
III. the cost of funds
IV. how and where to raise money (Points : 4)
I and II
I, II and III
II, III and IV
I, III and IV
All of the above

Question 2. 2. (TCO 1) Market values reflect which of the following: (Points : 4)
The amount someone is willing to pay today for an asset.
The value of the asset based on generally-accepted accounting principles.
The asset’s historical cost.
A and B only
None of the above

Question 3. 3. (TCO 1) Use the following tax table to answer this question:

Taxable Income

Tax Rate

$0- $50,000 15%
$50,001- 75,000 25
$75,001- 100,000 34
$100,001- 335,000 39
$335,001- 10,000,000 34

Riddell, Inc. earned $144,320 in taxable income for the year. How much tax does the company owe on this income? (Points : 4)
$39,535
$49,069
$51,285
$56,285
$78,535

Question 4. 4. (TCO 3) Regional Bank offers you an APR of nine percent compounded quarterly, and Local Bank offers you an EAR of 9.15 percent for a new automobile loan. You should choose ______________ because its _______ is lower. (Points : 4)
Regional Bank, APR
Local Bank, EAR
Regional Bank, EAR
Local Bank, APR

Question 5. 5. (TCO 3) You deposited $8,000 in your bank account today. Which of the following will increase the future value of your deposit, assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all that apply: (Points : 4)
a decrease in the interest rate
increasing the initial amount of your deposit
decreasing the frequency of the interest payments
extending the length of the investment period

Question 6. 6. (TCO 3) You want to have $15,000 for a down payment on a house five years from now. If you can earn 13 percent, compounded annually, on your savings, how much do you need to deposit today to reach your goal? (Points : 4)
$7,858.11
$8,141.40
$9,803.58
$12,464.28
$14,213.25

Question 7. 7. (TCO 3) Paper Pro needed a new store. The company spent $65,000 to refurbish an old shop and create the current facility. The firm borrowed 75 percent of the refurbishment cost at eight percent interest for 11 years. What is the amount of each monthly payment? (Points : 4)
$91.05
$284.13
$556.50
$682.87
$731.60

Question 8. 8. (TCO 3) John borrowed $5,500 four years ago at an annual interest rate of 10 percent. The loan term is seven years. Since he borrowed the money, Sonny has been making annual payments of $550 to the bank. Which type of loan does John have? (Points : 4)
interest-only
pure discount
compounded
amortized
complex

Question 9. 9. (TCO 3) Fanta Cola has $1,000 par value bonds outstanding at 12 percent interest. The bonds mature in 25 years. What is the current price of the bond if the YTM is 13 percent? Assume annual payments. (Points : 4)
$1078
$1085
$927
$1000

Question 10. 10. (TCO 6) The market where one shareholder sells shares to another shareholder is called the _____ market. (Points : 4)
primary
main
secondary
principal
dealer

Question 11. 11. (TCO 7) Which one of the following statements concerning financial leverage is correct? (Points : 4)
The benefits of leverage are unaffected by the amount of a firm’s earnings.
The use of leverage will always increase a firm’s earnings per share.
The shareholders of a firm are exposed to greater risk anytime a firm uses financial leverage.
Earnings per share are unaffected by changes in a firm’s debt-equity ratio.
Financial leverage is beneficial to a firm only when the firm has minimal earnings.

Question 12. 12. (TCO 3) A 10-year bond pays 11 percent interest on a $1000 face value annually. If it currently sells for $1,195, what is its approximate yield to maturity? (Points : 4)
9.33%
7.94%
12.66%
8.10%

Question 13. 13. (TCO 8) Which of the following is true regarding bonds? (Points : 4)
Bonds do not carry default risk.
Bonds are not sensitive to changes in the interest rates.
Moody’s and Standard and Poor’s provide information regarding a bond’s interest rate risk.
Municipal bonds are not free of default risk.
None of the above is true

Question 14. 14. (TCO 8) Which one of the following bonds is the most sensitive to interest rate movements? (Points : 4)
zero-coupon, five year
seven percent annual coupon, five year
zero-coupon, 10 year
five percent semi-annual coupon, 10 year
five percent annual coupon, 10 year

Question 15. 15. (TCO 6) A call provision in a bond agreement grants the issuer the right to: (Points : 4)
repurchase the bonds prior to maturity at a pre-specified price.
replace the bonds with equity securities.
repurchase the bonds after maturity at a pre-specified price.
change the coupon rate, provided the bondholders are notified in advance.
buy back the bonds on the open market prior to maturity.

The purpose of this project is for you to have some practice working with Financial concepts in the real world

Second Project The purpose of this project is for you to have some prac±ce working with Fnancial concepts in the real world. This will involve integrating some material from throughout the course. The project will also involve the development of your own approach to doing the work. The project does not provide a step- by-step procedure for you to follow. Your task is to determine the WACC for a given Frm using what you know about WACC as well as data you can Fnd through research. Your deliverable is to be a brief report in which you state your determina±on of WACC, describe and jus±fy how you determined the number, and provide relevant informa±on as to the sources of your data. With the help of your professor, you have selected a company for which to research and Fnd the WACC. Your research is to be independent from any informa±on you may Fnd at thatswacc.com or similar sites although you might want to use such sites to provide a reasonableness check on the WACC you calculate. AssumpTons As you recall, the formula for WACC is r WACC = (E/E+D) r E + D/(E+D) r D (1-T C ) The formula for the required return on a given equity investment is r i = r f + β i * (R Mkt -r f ) R Mkt -r f is the Market Risk Premium. ²or this project, you may assume the Market Risk Premium is 4% unless you can develop a be³er number. r f is the risk free rate. The YTM on 10 year US Treasury securi±es is a good approxima±on. You may assume a corporate tax rate of 40%. One good source for Fnancial data for companies as well as data about their equity is h³p://Fnance.yahoo.com . By looking around this site, you should be able to Fnd the market capitaliza±on (E) as well as the β for any publicly traded company. There are not many places le´ where data about corporate bonds is s±ll available. One of them is h³p://Fnra-markets.morningstar.com/BondCenter . To Fnd data for a par±cular company’s bonds, Fnd the Quick Search feature, then be sure to specify corporate bonds and type in the name of the issuing company. This should give you a list of all of the company’s outstanding bond issues. Clicking on the symbol for a given bond issue will lead you to the current amount outstanding and the yield to maturity. You are interested in both. The total of all bonds outstanding is D in the above formula. If you like, you can use the YTM on a bond issue that is not callable as the pre-tax cost of debt for the company. Deliverable Write a two or three page report that contains the following elements:

1. Your calculated WACC. 2. How data was used to calculate WACC. This would be the formula and the formula with your values subs±tuted. 3. Sources for your data. 4. A discussion of how much conFdence you have in your answer. What were the limi±ng assump±ons that you made, if any

Casino.com Corporation is building a $25 million office building in Adelaide and is financing the construction at an 80 % loan-to-value ratio

Casino.com Corporation is building a $25 million office building in Adelaide and is financing the construction at an 80 % loan-to-value ratio, where the loan is in the amount of $20,000,000. This loan has a ten-year maturity, calls for monthly payments, and is contracted at an interest rate of 8%.

Using the above information, answer the following questions.

1. What is the monthly payment?

2. How much of the first payment is interest?

3. How much of the first payment is principal?

4. How much will Casino.com Corporation owe on this loan after making monthly payments for three years (the amount owed immediately after the thirty-sixth payment)?

5. Should this loan be refinanced after three years with a new seven-year 7 per cent loan, if the cost to refinance is $250,000? To make this decision, calculate the new loan payments and then the present value of the difference in the loan payments.

6. Returning to the original ten-year 8 per cent loan, how much is the loan payment if these payments are scheduled for quarterly rather than monthly payments?

7. For this loan with quarterly payments, how much will Casino.com Corporation owe on this loan after making quarterly payments for three years (the amount owed immediately after the twelfth payment)?

8. What is the annual percentage rate on the original ten-year 8 % loan?

9. What is the effective annual rate (EAR) on the original ten-year 8 % loan?

The market risk premium is 7.2. The firm’s required return is 11.2%. The risk-free rate is 5%. What is the firm’s beta?

1. The market risk premium is 7.2. The firm’s required return is 11.2%. The risk-free rate is 5%. What is the firm’s beta?

2. Your portfolio has a beta of 1.4. The portfolio consists of $30,000 of GM and $20,000 of Ford stock. GM’s beta is 1.1. What is the beta of Ford?

3. The balance sheet for Stratton Co. shows $400,000 in common equity, $100,000 in preferred stock, and $500,000 in long-term debt. The company has 20,000 common shares outstanding at a market price of $65 per share. The firm’s 4,000 shares of preferred stock are currently priced at $50 per share. The firm has 500 bonds outstanding selling at par value ($1,000). The company’s before-tax cost of debt is 6%. The cost of common stock and preferred stock are estimated to be 10% and 7% respectively. If the firm’s marginal tax rate is 40%, what is the firm’s weighted average cost of capital (WACC)?

4. You are evaluating the proposed acquisition of a machine that costs $220,000. The machine will result in increased sales of $120,000 per year for 3 years, but costs will increase by $25,000 per year. The machine will be depreciated 3 years MACRS and will be sold for an estimated $50,000 after 3 years. NWC will increase by $75,000 and remain constant for the life of the project. The firm’s tax rate is 40 percent and discount rate is 9 percent. Calculate the project’s cash flows.

MACRS for 3 years:
Year 1 Year 2 Year 3
33.33% 44.45% 14.81%

1 2 3 31,664