Business, 23.03.2020 21:34 mayahgrimes
Nico Manufacturing is considering investment in one of two mutually exclusive projects X and Y which are described below. Nico Manufacturing's overall cost of capital is 15 percent, the market return is 15 percent and the risk-free rate is 5 percent. Nico estimates that the beta for project X is 1.20 and the beta for project Y is 1.40Project XInitial Investment = $3,500,000Cash Inflowsyear 1 $1,500,000year 2 $1,500,000year 3 $1,500,000year 4 $1,500,000Project YInitial Investment = $3,900,000Cash Inflowsyear 1 $1,100,000year 2 $1,600,000year 3 $1,900,000year 4 $2,300,0001) Calculate the risk-adjusted discount rates for project X and project Y2) Using the risk-adjusted discount rate method of project evaluation, find the NPV for projects X and Y. Which project should Nico select using this method?3) Calculate the NPV of Projects X and Y assuming that the firm did not employ the RADR method and instead used the firm's overall cost of capital to evaluate projects X and Y
Answers: 1
Business, 21.06.2019 16:40
Acme published a story about paul and as a result paul sued acme for damage to his reputation, emotional distress, and punitive damages. paul won an award of $20,000 for damages, $5,500 for emotional distress, and $50,000 for punitive damages. what amount must paul include in his gross income
Answers: 1
Business, 21.06.2019 21:20
Reqwest llc agrees to sell one hundred servers to social media networks, inc. the servers, which social media networks expressly requires to have certain amounts of memory, are to be shipped “f.o.b. social media networks distribution center in tampa, fl.” when the servers arrive, social media networks rejects them and informs reqwest, claiming that the servers do not conform to social media networks’ memory requirement. a few hours later, the servers are destroyed in a fire at social media networks’ distribution center. will reqwest succeed in a suit against social media networks for the cost of the goods?
Answers: 3
Business, 22.06.2019 00:20
Suppose an economy consists of three sectors: energy (e), manufacturing (m), and agriculture (a). sector e sells 70% of its output to m and 30% to a. sector m sells 30% of its output to e, 50% to a, and retains the rest. sector a sells 15% of its output to e, 30% to m, and retains the rest.
Answers: 1
Business, 22.06.2019 17:30
You should do all of the following before a job interview except
Answers: 2
Nico Manufacturing is considering investment in one of two mutually exclusive projects X and Y which...
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