An unlevered firm has a cost of equity capital of 10%. The firm will invest in a project that will give a one- time cash flow of $33,000 after one year. A levered firm invests in the same project as the unlevered firm. What is the value of the levered value with perfect capital markets? $24,000 $30,000 $36,600 $36.000
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- Help pleaseBaghiben2. A firm is evaluating two projects. The firm's cost of capital (appropriate discount rate) has been determined to be 9%, and the projects have the fllowing initial investments and cash flows: Project Q Project Y P 50 000 P 20 000 Initial Investment: P 48 000 Cash Flows: 1 P 30 000 2 25 000 35 000 3 15 000 40 000 4 20 000 10 000 Which project should the company pursue? Why?
- The Seattle Corporation has been presented with an investment opportunity which will yield end-of-year cash flows of $19,000 per year in Years 1 through 4, and $23,000 per year in Years 5 through 9. This investment will cost the firm $63,000 today, and the firm's cost of capital is 9.2 percent. What is the NPV for this investment? Question 6 options: $49,874 $52,174 $54,674 $56,274 $57,774 $60,874Help pleaseA firm has the following investment alternatives (refer to image): Each investment costs $3,000; investments B and C are mutually exclusive, and the firm’s cost of capital is 8 percent. a.) What is the net present value of each investment? b.) According to the net present values, which investment(s) should the firm make? Why? c.) What is the internal rate of return on each investment?
- need helpA firm evaluates all of its projects by applying the IRR rule. Cash Flow Year 0 1 2 3 147,000 69,000 70,000 54,000 What is the project's IRR? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Internal rate of return % If the required return is 16 percent, should the firm accept the project?How I resolve this problems please give me the detail A firm has the following investment alternatives: Year A B C 1 $400 $--- $---- 2 400 400 ---- 3 400 800 ---- 4 400 800 1,800 Each investment cost of capital is 10 percent a. What is each investment's internal rate of return? b. Should the firm make any of theses investment? C. What is each investemtn's net present value? d. Should the firm make any of these investment
- A firm has two mutually exclusive investment projects to evaluate. The projects have the following cash flows: Time Cash Flow X Cash Flow Y 0 -$80,000 -$70,000 1 30,000 35,000 2 55,000 35,000 3 70,000 35,000 4 - 35,000 5 - 5,000 Projects X and Y are equally risky and may be repeated indefinitely. If the firm’s WACC is 7%, what is the EAA of the project that adds the most value to the firm? Do not round intermediate calculations. Round your answer to the nearest dollar. Choose Project , whose EAA = $Solve this question pleaseConsider the following two investment alternatives: The firm's MARR is known to be 15%.(a) Compute the IRR of Project B.(b) Compute the PW of Project A. (c) Suppose that Projects A and B are mutually exclusive. Using the IRR, whichproject would you select?