A stock market analyst has forecasted the following year-end numbers for Nation al Co.: Sales P70 million P25 million E BITDA Depreciation P 7 million Amortization PO The company's tax rate is 25 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total P12 million and planned increased in working capital of P5 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.)

A stock market analyst has forecasted the following year-end numbers for Nation al Co.: Sales P70 million P25 million E BITDA Depreciation P 7 million Amortization PO The company's tax rate is 25 percent. The company does not expect any changes in its net operating working capital. This year the company's planned gross capital expenditures will total P12 million and planned increased in working capital of P5 million. (Gross capital expenditures represent capital expenditures before deducting depreciation.)

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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What is the payback period (in annual terms) of the following cashflow stream? Year 1: $-986 Year 4: $362 Year 9: $901 Year 13: $-42 Year 15: $808 Year 19: $-951 4
Suppose an investment has conventional cash flows with positive NPV. How would it impact your decision based on capital budgeting techniques mentioned below? Proﬁtability index (PI) Internal Rate of Return (IRR) Payback Period (PBP) Ratio 2020 2019 2018 2020- Industry Average Inventory Turnover 62.65 42.42 32.25 53.25 Receivables in days 94 63 50 115 Debt to Equity 0.75 0.85 0.90 0.88 Quick Ratio 1.028 1.03 1.029 1.031 Current Ratio 1.33 1.21 1.15 1.25
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