Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be
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NUBD is evaluating its X Division, an investment center. The division has a P50,000 controllable margin and P300,000 of sales. How much will NUBD’s average operating assets be when its
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- Sunland Division's operating results include: controllable margin of $280000, sales totaling $1400000, and average operating assets of $800000. Sunland is considering a project with sales of $100000, expenses of $84000, and an investment of average operating assets of $200000. Sunland's required rate of return is 10%. Should Sunland accept this project? O Yes, ROI will drop by 6.6% which is still above the minimum required rate of return. O Yes, ROI still exceeds the cost of capital. O No, the return is less than the required rate of 10%. O No, ROI will decrease to 8%. Save for Later O i 20 2 Attempts: 0 of 1 used Submit AnswerThe Suboptimal Glass Company uses a process of capital rationing in its decision making. The firm's cost of capital is 14 percent. It will invest only $50, 500 this year. It has determined the IRR for each of the following projects: Project Project Size Internal Rate of Return A $ 10, 100 17.0% B 30, 300 16.0 C 25,250 15.0 D 10, 100 17.5 E 10, 100 18.0 F 20, 200 24.0 G 15,150 12.0 a. Pick out the projects that the firm should accept. (You may select more than one answer. Click the box with a check mark for the correct answer and click to empty the box for the wrong answer.) check all that apply 1 Project Bunanswered Project Cunanswered Project Dunanswered Project Eunanswered Project Funanswered Project Gunanswered Project Aunanswered b. If projects E and F are mutually exclusive, how would that affect your overall answer? That is, which projects would you accept in spending the $ 50, 500? (You may select more than one answer. Click the box with a check mark for the correct answer and…Aster Company is considering an investment in technology to improve its operations. The investment will require an initial outlay of $800,000 and yield the following expected cash flows. Management requires investments to have a payback period of two years, and it requires a 10% return on its investments.
- Nike is a global footwear powerhouse that commands high customer loyalty. Nike is evaluating Project T, which requires an initial investment of RO 30,000. The expected net cash flows are RO 10,000 pa for four years at today’s prices. However these are expected to rise by 5.5% pa because of inflation. The firm’s cost of capital is 15%. What is the NPV for the Project T evaluated by Oman Glass LLC using the discounting money cash flows? 3393 2393 2500 14792Midwest Water Works estimates that its WACC is 10.45%. The company is considering the following capital budgeting projects. Assume that each of these projects is just as risky as the firm's existing assets and that the firm may accept all the projects or only some of them. Which set of projects should be асcсepted? Project Size Rate of Return А $1 million 12.0% -Select- В 2 million 11.5 -Select- 2 million 11.2 -Select- 2 million 11.0 -Select- E 1 million 10.7 -Select- F 1 million 10.3 -Select- 1 million 10.2 -Select-Golden Goodness (GG) has an investment center that had the following data: Operating Income $28,000 Sales $350,000 Invested assets $175,000 PMB has set a minimum acceptable rate of return at 14%. Using the information, answer the following questions. You must include what type of number it is (%, $, etc.) What is the profit margin? What is the investment turnover? What is the return on investment?
- A company is deciding whether to invest in a project. There are three possible outcomes of the investment: There is a 20% chance of the optimistic outcome, and a 65% chance of the most likely outcome arising. The expected value of profit from the project isRevenues generated by a new fad product are forecast as follows: Year Revenues 1 $50,000 2 35,000 3 30,000 4 20,000 Thereafter 0 Expenses are expected to be 40% of revenues, and working capital required in each year is expected to be 20% of revenues in the following year. The product requires an immediate investment of $60,000 in plant and equipment. a. What is the initial investment in the product? Remember working capital. b. If the plant and equipment are depreciated over 4 years to a salvage value of zero using straight-line depreciation, and the firm’s tax rate is 20%, what are the project cash flows in each year? Assume the plant and equipment are worthless at the end of 4 years. c. If the opportunity cost of capital is 10%, what is the project's NPV? d. What is the project IRR?Buzzy Manufacturing Company has P2 billion in sales and P0.6 billion in fixed assets. Currently, the company’s fixed assets are operating at 80% of capacity. What level of sales could Buzzy have obtained if it have been operating at full capacity? What is Buzzy’s target fixed assets to sales ratio? If Buzzy’s sales increased by 30%, how large is the increase in fixed assets will the company need to meet its target fixed assets to sales?
- An investment with total costs of $10,000 will generate total revenues of $11,000 for one year. Management thinks that since the investment is profitable, it should be made. Do you agree? What additional infromation would you want? If funds cost 12 percent, what would be your advice to management? Would your answer be different if the cost of capital is 8 percent?1. X company provides specialty manufacturing services to defence contractors located in the Seattle, WA area. The initial outlay is $4 million and, management estimates that the firm might generate cash flows for years one through frve equal to $800,000, $750,000, $1,000,000, $1,900,000; and $2,000,000. Saber uses a 20% discount rate for projects of this type. Is this a good investment opportunity?None