Finance Review Questions
Not what you're looking for?
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
Purchase this Solution
Solution Summary
This solution is comprised of a detailed explanation to answer what is the expected value of the investment's payoff.
Solution Preview
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 ...
Purchase this Solution
Free BrainMass Quizzes
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Transformational Leadership
This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Managing the Older Worker
This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce