sets ($7,240); EBIT = $1,000; depreciati- t working capital = ($2,000); beginning %3D %3D lect one: a. $35,000
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- 26A4 9a We find the following information on NPNG (No-Pain-No-Gain) Inc.: A4 9a EBIT = $2,000,000Depreciation = $250,000Change in net working capital = $100,000Net capital spending = $300,000 These numbers are projected to increase at the following supernormal rates for the next three years, and 5% after the third year for the foreseeable future: EBIT: 20%Depreciation: 10%Change in net working capital: 15%Net capital spending: 10% The firm’s tax rate is 35%, and it has 1,000,000 outstanding shares and $8,000,000 in debt. We have estimated the WACC to be 15%. a. Calculate the EBIT, Depreciation, Changes in NWC, and net capital spending for the next four years.I just need to know the formulas to input into the NPV along with the 4 NPV formulas on the bottom
- Residual Income = $23000 Operating income = 35,844 Cost of Capital = 12% What is return on investment? Don't round any intermediate calculations. Enter your answer to one decimal place. Do not use commas, percentage or dollar signs.whion for Coofer EuterPrises is gven below! Dee B1, 20 24 Plan assets (at fair valve) Projected bonegil obligation Acemulated other comprehensivedess $ 1,600,000 1,200,000 503,700 The everage remahing benvicekife of euluye is loyeurs. The amortizahion of Accumulofed other CompPorc hesaive lass for tor 2022, usingthe corridor methad, 1B .... ? cs Scanned with GamScanner($ thousands) Present value at 19% Net cash flow Net present value 0 1 4 -13,700 -1,594 -13,700 -1,339 3,541 (sum of PVs). Period 2 3 6 3,057 6,433 10,644 10,095 5,867 2,159 3,817 5,308 4,230 2,066 5 7 3,379 1,000 Restate the above net cash flows in real terms. Discount the restated cash flows at a real discount rate. Assume a 19% nominal rate and 11% expected inflation. NPV should be unchanged at +3,541, or $3,541,000. Note: Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers in thousands rounded to the nearest whole number. Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Real Net Cash Flows NPV
- Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations and round your final answer to 2 decimal places.) Project M Time in Years 0 1 2 3 4 5 Cash flow: -$3,500 $750 $880 $920 $1,000 $5004. Engineers of a company have $8000 for using as principal (anapara) to invest, and there are 3 options available. If di dollars (in thousands) are invested in investment j, then a net present value (in thousands) of ri(d) is obtained, where the ri(d))'s are as follows: r₁(d₁)=7d₁ + 2 (d₁ ≥ 0) r2(d₂) = 3d₂ + 7 (d₂ ≥ 0) r3(d3) = 4d3 + 5 (d3 ≥ 0) r₁(0) = r2 (0) = r3 (0) = 0 Engineers can only invest these options with the exact multiples of $1000 ($1000, $2000, $3000...) How can company engineers allocate $8000 to maximize the income from these investments?Problem 1: Consider the following cash flows and assume i = 10% for all analyses purposes: Project Cash Flows A D -$2,500 -$7,000 -$5,000 -$5,000 1 $650 -$2,500 -$2,000 -$500 2 $650 -$2,000 -$2,000 -$500 $650 -$1,500 -$2,000 $4,000 4 $600 -$1,500 -$2,000 $3,000 5 $600 -$1,500 -$2,000 $3,000 $600 -$1,500 -$2,000 $2,000 7 $300 -$2,000 $3,000 8 $300 a) Compute the project balances for Projects A and D, as a function of project year b) Compute the future worth values for Projects A and D at the end of service life. c) Suppose that Projects B and C are mutually exclusive. Assume also that the required service period is eight years and that the company is considering leasing comparable equipment that has an annual lease expense of $3,000 for the remaining years of the required service period for both projects. Which project is the better choice?