QUESTION 000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000 Year 0 1 2 3 4 Leasing CF 0 -2,400,000 -2,400,000 -2,400,000 -2,400,000 Owning CF -1,545,000 153,000 225,000 45,000 297,000 DifferentialCF 1,545,000 -2,553,000 25,000 -2,445,000 -2,697,000 PV 1,545,000 -2,342,202 -2,209,410 -1,887,989 -1,910,623 NPV -6,805,223 IRR 1.63 ANSWER: CLICK REQUEST FOR AN EXPERT SOLUTION
QUESTION Robert Martino plans to borrow $8,000 for five years. The loan will be repaid with a single payment after 5 years, and the interest on the loan will be computed using the simple interest method at an annual rate of 8 percent. How much will Robert have to pay in 5 years? How much […]
QUESTION Consider the following information for an unlevered firm U:EBIT = $1,600 annuallyUnlevered value VU = $4,000Tax rate = 34%Cost of debt = 10%A levered firm L in the same business risk class has a debt/equity ratio of 1.Use the M&M Propositions to determine the:a. after-tax cost of equity for firm Value of Unlevered firm […]
QUESTION Explain how the aggregate expenditure function shifts in response to changes when consumer confidence decreases and when higher taxes are imposed on business profits The aggregate expenditure function slopes downward and to the right because it is inversely related to the price level. When consumer confidence decreases the whole function shifts to the left […]
QUESTION Income tax is a on income and not on receipt? Discuss this statement and keep the main feature of the income. Income Tax is a tax imposed by the Government on any body who earns income. All Income receipts are not considered as income. Receipts can be classified into two kinds: (A) Revenue receipts […]
QUESTION Assume that Microsoft has a total market value of $300 billion and a marginal tax of 35%. If it permanently changes its leverage from no doubt by taking on new debt in the amount of 13% of its current market value, what is the present value of the tax shield it will create**Hint fomr […]
QUESTION a) In perfect capital markets, the dividend policy is irrelevant. Let us imagine that the firm pays dividends without changing investing and financing policies. The company maintains the same amount of debt and it needs to issue new shares to finance the dividends. The new shareholders will pay only what the shares are worth, […]
QUESTION A. risk managementB. controlC. financial statementsD. governance answer is Option (C) Financial Statements The scope of internal auditing work encompasses a systematic, discipliend approach to evaluating and improving the adequacy and effectiveness of all of the following process: (1) Internal Control (2) Risk Management (3) Corporate Governance Internal Control involves: Efficacy of operations, the […]
QUESTION 1. You invest $3,000 a yearfor three years at 12 percent.a. What is the value of yourinvestment after one year? Multiply $3,000 X 1.12b. What is the value of yourinvestment after two years? Mu Solution has been given alongwith the questionitself.====================================1. You invest $3,000 a year for three years at 12percent a. What is […]
QUESTION I have an answer,I just need to make sure its correct.The Clearinghouse Sweepstakes has just informed you that you have won $1 million. The amount is to be paid out at the rate of $20,000 a year for the next 50 years. With a discount rate of 10%, what is the present value of […]
