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    Attached you will find two finance questions that I need step by step guidance for with formulas included. Please show all of the work so that I may understand the material fully.

    1. You have invested in a project that has the following payoff schedule:

    Payoff Probability of Occurrence
    $40 .15
    $50 .20
    $60 .30
    $70 .30
    $80 .05

    What is the expected value of the investment's payoff? Show all formulas along with calculations (Round to the nearest $1).

    A) $70
    B) $60
    C) $59
    D) $65

    2. Analysts expect a project to generate EBIT of $500,000 per year for 5 years. Depreciation expense is expected to be $150,000 per year and the corporation's tax rate is 40%. The project will require an increase in net working capital of $50,000 in year one and a decrease in net working capital of $25,000 in year five. What is the free cash flow from the project in year one? Show all formulas along with calculations.

    A) $250,000
    B) $450,000
    C) $400,000
    D) $100,000

    © BrainMass Inc. brainmass.com December 15, 2022, 7:48 pm ad1c9bdddf
    https://brainmass.com/business/finance/finance-review-questions-250496

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    1. You have invested in a project that has the following payoff schedule:

    Payoff Probability of Occurrence
    $40 .15
    $50 .20
    $60 .30
    $70 .30
    $80 .05

    What is the expected value of the investment's payoff? Show all formulas along with calculations (Round to the nearest $1).

    A) $70
    B) $60
    C) $59 ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the expected value of the investment's payoff.

    $2.49

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