Qz. ABC Corp. is planning an investment of $95.000,000, WACC is 10%, the economic life of the investment is 8 years and other data are given in the following figure. Variables Worst case Expected (base) Best case 1,450,000 Market size Market share 1,150,000 0.20 500 450 1,250,000 Unit price(5) variable cost/unit (5) Fix cost/ per unit (S) Considering a worst case, base case, and best case, calculate (at least for the base case) the NPV and interpret the feasibility of the investment. 25 D.25 525 430 D.30 23 550 410 20
Qz. ABC Corp. is planning an investment of $95.000,000, WACC is 10%, the economic life of the investment is 8 years and other data are given in the following figure. Variables Worst case Expected (base) Best case 1,450,000 Market size Market share 1,150,000 0.20 500 450 1,250,000 Unit price(5) variable cost/unit (5) Fix cost/ per unit (S) Considering a worst case, base case, and best case, calculate (at least for the base case) the NPV and interpret the feasibility of the investment. 25 D.25 525 430 D.30 23 550 410 20
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
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Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
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