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    Capital Budgeting

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    Capital Investment Mini case study.

    Conch Republic Electronics Spent $750.00 to develop a prototype (or Model) for a new PDA Spent an additional $200,000 for marketing study to determine the expected sales. Can manufacture the new PDA with variable cost for $86.00 each. Fixed Costs for the operation are estimated at $3 million per year. Unit Price

    Monetary Policies

    I am trying to write a paper on monetary policies and need some help understanding how expansionary and contractionary monetary policies impact the various components of U.S. economy. For example the effects of monetary policy on consumers, households, businesses, GDP, unemployment, budget, and trade deficits.

    Capital Budgeting -- Tanning Beds

    Patsy a call to Sun-quest Inc., the salesman, Mike, who answered the call was extremely helpful, courteous, and convincing. "Let's say I do start the tanning service at my salon, Mike, should I go in for the less expensive tanning bed or the more expensive tanning dome?" asked Patsy, eager to sort out her dilemma. "Well," respo

    Finance case study for Patsy's salon and day spa

    When Patsy opened her full service salon and day spa three years ago, she knew that she would have to make some difficult choices regarding the hiring and firing of qualified professionals such as cosmetologists, estheticians, nail technicians and massage therapists. However, she was confident that her salon management training

    Cumulative case study: Desert Coffee Roasters Inc.

    PLEASE SEE ATTACHED FILES FOR DETAILS Based on the Cumulative Case Study: Desert Coffee Roasters, Inc., devise the optimal capital structure for the organization. Revise the financial plans created in previous assignments as necessary to achieve the optimal capital structure. 1. Initial set of pro forma statements a

    Role of the Financial Manager

    Role of the Financial Manager Evaluate the role of the financial manager in maximizing shareholder value within today's financial markets. Compare the financial manager's viewpoint with the viewpoint of an employee or stockholder with regard to maximizing share value.

    Decision process for eliminating a product at Working Computers Inc.

    The full detail of the question has been attached. 1. Given the unit sales information in Exhibit 1, develop an annual revenue forecast for 2004 through 2009. Forecast sales first assuming that the revised Bernoulli will be introduced one year from today, and then create a forecast which is based on sales of the current model

    NPV and IRR calculation for Sam Adams

    Calculate NPV and compare to IRR. The following data have been collected by a task force of capital budgeting analysts at Sam Adams Ltd. Concerning the drilling and production of known reserves at an off-shore location: Investment in rigging equipment and related personnel costs required to pump the oil $4,900,0

    1. Two companies, A and B, have the following balance sheet accounts:

    BELOW ARE TWO PROBLEMS THAT I NEED SOLVED. I HAVE ALSO ATTACHED A WORD DOCUMENT WITH THE PROBLEMS IN FORMAT THAT IS EASIER TO UNDERSTAND. THEY ARE ALSO LOCATED IN PDF FORMAT ON PAGE 170 THANKS. 1. Two companies, A and B, have the following balance sheet accounts: A B Current assets $ 150 $ 800 Fixed assets 300 2200 Curr


    Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu

    Evaluating a Project using NPV

    Consider this project with an internal rate of return of 13.1 percent. Should you accept or reject the project if the discount rate is 12%? Year Cash Flow 0 +$100 1 -60 2 -60

    NPV, IRR and Payback Problems

    If you insulate your office for $10,000, you will save $1,000 a year in heating expenses. These savings will last forever. a. What is the NPV of the investment when the cost of capital is 8%? 10%? b. What is the IRR of the investment? c. What is the payback period on this investment? Show your work.

    Calculating Present Value of Property

    You can buy property today for $3M and sell it in 5 years for $4M. (no rental income on the property) a. If the interest rate is 8%, what is the present value of the sales price? b. Is the property investment attractive to you? Why or why not? c. Would your answer to (b) change if you also could earn $200,000 per year re

    Investment Strategy Changes

    Can you give me some recommendations for some changes in an organizations investment strategy in order to improve its investment performance?


    Yoshika Landscaping is contemplating purchasing a new ditch-digging machine that promises savings of $5,600 per year for 10 years. The machine costs $21,970 and no salvage value is expected. The company's cost of capital is 12%. You have been asked to advise Yoshika relative to this capital investment decision. As part of yo

    NPV and Profitability Index

    Sunshine Corporation is considering several long-term investments. Management wants to accept the two best projects, given the following data: Project A B C D E Present Value of net cash inflows $24,000 $44,000 $15,000 $30,000 $50,000 Investment Cost 20,000 40,000 16,000 24,000 41,000 Required: 1. Determin

    Financial Management: Budgeting and Personal Finance

    Capital budgeting c. fields is considering installing solar panels on his house to decrease his electricity costs. Chester has a proposal that will cost $25,450.00 for a complete installation. Engineers have estimated that he will save an average of 26% from his electricity use from the grid.the engineers have projected that

    Keller Paints, Inc. -- Capital Budgeting Decision

    Keller Paints, Inc. Capital Budgeting Decision The production department has been investigating possible ways to trim total production costs. One possibility currently being examined is to make the paint cans instead of purchasing them. The equipment needed would cost $125,000 with a disposal value of $20,000 and would be ab

    Action plan and budgeting

    Can you think of circumstances where an Action Plan and Work Break Down Structure would not be needed and why? Please discuss.budgeting, evaluation.

    Present Value

    The State of Florida issued $2,000,000 of 12 percent coupon, 20-year semiannual payment, tax-exempt bonds 5 years ago. The bonds had 5 years of call protection, but now the state can call the bonds if it chooses to do so. The call premium would be 5 percent of the face amount. Today 15-year, 10 percent, semiannual payment bonds

    Capital Budgeting: Maximize Combined NPV

    A company wants to maximize the combined Net Present Value (NPV) of a maximum of 6 opportunities that require up to 6 yearly investments. In each year there is only a limited amount of money available. All amounts are give in millions of dollars. Interest rate is 5%.

    Let's say I just won the lottery...

    Let's say I just won the lottery and I'm suppose to receive $2,000 five years from now. At an interest rate of 6%, what is that $2,000 worth today?

    Present Value

    I am having trouble calculating the present value for Offer I. Any help would be appreciated. There should be three answers to this one offer. Dr. Harold Wolf of Medical Research Corporation (MRC) was thrilled with the response he had received from drug companies for his latest discovery, a unique electronic stimulator that

    Find the NPV, MIRR, and which year the present value cash flow becomes positive.

    Kim wants you to review a capital project the company is looking to undertake. The project is a new line of goods the company will produce. Kim has stated that the decision to move forward will be driven by the net present value of the project (it must be positive), and the modified internal rate of return must be at least 13%.