Question: Take the data below of a startup firm. All number in Millions and assumptions in brackets. Calculate the NPVusing Discounted Cash flow technique with 3 year projections. Hint: You should first create a table for 3 years with thefree cash flow calculation and then use the formulaes for deriving NPV. (Create FCF calculation table and separatelyshow for NPV calculation) EBIT: End of Year-1, Rs. 100 (Assume future growth rate- 10%). Interest: Rs. 10 (Existingloan Rs. 100 @10% interest rates, no new loan) Net Working capital: Rs. 10 per year (assume constant) • Taxes-30% (Assume Constant) Assets - Rs. 100 (Depreciation rate 20% per year) • Net Capital expenditure planned Rs. 20each in the 2nd year and 3rd year Assume 2% terminal growth rate Assume 10% Weighted Average Cost of Capital (WACC)

Part 2: Explanation:Step 1: Free Cash Flow Calculation- Calculate EBIT: Given as Rs. 100 for Year 1,…

Answered: Question: Take the data below of a…

Chemistry

10th Edition

ISBN:9781305957404

Author:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste

Publisher:Steven S. Zumdahl, Susan A. Zumdahl, Donald J. DeCoste

Chapter1: Chemical Foundations

Section: Chapter Questions

Problem 1RQ: Define and explain the differences between the following terms. a. law and theory b. theory and...

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MBA Corp plans to use its idle building that can potentially be rented for $15,000 per annum to set up a manufacturing machinery there. The current Revenue of MBA Corp is $500,000. If the company takes up this project, its revenue is expected to increase by 30% for the next three years and then double (from the 3rd year level) for the next two years. After 5 years, the project will be scrapped and the salvage value is expected to be $80,000 The COGS are expected to remain the same at 60% of revenue. The SG&A and other operating costs will increase by $10,000. The cost of the machinery is expected to be $250,000. The machinery installation cost is expected to be $20,000. This investment will require additional inventory of $40,000 and increase the accounts payable by $20,000 The company spent $ 5000 in researching the viability of the building for machine installation. The company hires you as a financial manager to advise if they should take up this project or not. Other information:…
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In 1999, Amazon Inc. is considering launching a new e -commerce business specializing in cloud computing services. The project is tentatively named Amazon Web Services (henceforth "AWS"). To assess the feasibility of AWS, Amazon's CFO has identified Oracle Corp. (NYSE: ORCL) as a somparable firm that has a similar business risk and estimated the following information: Oracle has equity and debt worth $20 billion and $40 billion, respectively. Oracle's equity beta and debt beta are estimated at 1.8 and 0.1, respectively. Oracle's marginal tax rate is estimated at 25%. Amazon CFO is trying to determine the weighted average cost of capital for AWS. He believes that Amazon's cost of debt will apply to AWS's debt financing. The CFO's estimate of the CAPM beta of AWS's debt is 0.2. AWS is expected to maintain a target leverage ratio of 50% ( equivalently, debt/equity = 1) and to face a marginal tax rate of 20% in the foreseeable future. Assume that the tisk - free rate is 3% and the market…
Bb Blackboard Collaborate Ultra – 1 X Bb Collaborate - Live Tutorial Ses X O Mail - Jenna Lewis - Outlook G 0.615 ml to litres - Google Search x + 8 https://au.bbcollab.com/collab/ui/session/playback Not syncing O Instagram (11) Facebook In class questions: Q97: - Use the provided equation to calculate the following: KMNO, (aq) + HCI (aq) → MnCl, (aq) + Cl, (g) + H,0 (1) + KCI (aq) а. The moles of H,0 that can be obtained from 15.0 ml of 0.250 M HCI. b. The volume of 0.150 M KMno, needed to produce 0.0143 g MnCl,. С. The volume of 2.50 M HCI needed to produce 125 ml of 0.525 M KCI. 2KMNO, (aq) + 16HCI (aq) → 2MNCI, (aq) + 5Cl, (g) + 8H,0 (1) + 2KCI (aq) 01:36:12 01:59:28 [CC 9:14 AM O Type here to search 14°C Sunny 4) ENG 9/09/2021
vonconstant Growth Stock valuation Reizenstein Technologies (RT) has just developed a solar panel capable of generating 200% more electricity than any solar panel currently on the market. As a result, RT is expected to experience a 20% annual growth rate for the next 5 years. By the end of 5 years, other firms will have developed comparable technology, and RT's growth rate will slow to 5% per year indefinitely. Stockholders require a return of 10% on RT's stock. The most recent annual dividend (D), which was paid yesterday, was $2.95 per share. a. Calculate RT's expected dividends for = 1, 2, 3, 4, and r = 5. Do not round intermediate calculations. Round your answers to the nearest cent. D₁ = $ D₂ = $ D₂ = $ D₁ = $ D₁ = $ b. Calculate the estimated intrinsic value of the stock today, widehat(P), Proceed by finding the present value of the dividends expected at 1,1 = 2,1 = 3,1 = 4, and 5 plus the present value of the stock price that should exist at = 5, widehat(P). The widehat(P) stock…

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