subject : Finance Q2. ABC Corp. is planning an investment of $95.000,000, WACC is 10% , the economic life of theinvestment is 8 years and other data are given in the following figure.VariablesWorst caseExpected (base) Best case1,250,0001,450,000Market sizeMarket share1,150,0000.20500Unit price($)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 NPVand interpret the feasibility of the investment.450b.2525525430b.3023$5041020

Name: subject : Finance Q2. ABC Corp. is planning an investment of $95.000,0
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Description: subject : Finance Q2. ABC Corp. is planning an investment of $95.000,000, WACC is 10% , the economic life of theinvestment is 8 years and other data are given in the following figure.VariablesWorst caseExpected (base) Best case1,250,0001,450,000Marke

Select financials have been provided under three different scenarios. The NPV has to be calculated…

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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

Problem 1PS

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Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1 =1350 OMR; Year 2 =1400 OMR; Year 3=1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one: a. 1.48 b. 1.26 c. None of the options d. 1.83 e. 1.69
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Find the profitability index for Oman Air conditioner Company if the initial investment is 4000 OMR and the cash Inflows are as follows: Year 1=1350 OMR; Year 2 =1400 OMR; Year 3-1450 OMR and Year 4=1500 OMR. Use discount rate as 5%. Select one:
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