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Ratios, NPV and IRR Analysis

There are a total of 4 problems

The attached chapter problems 13-4, 13-10 & 14-6 . Use Excel or Word for each problem.

Use the attached Excel spreadsheet to calculate the Rental Property Analysis. Please complete the cash flow projections and calculate the NPV, IRR and MIRR of the two scenarios. Ignore tax considerations in this analysis. Do not change any formatting. Also, as an aid I have attached 2 PPT presentations and related lecture material in word format.

Prob 13.4

Double wide dealers has an ROA of 10%, a 2% profit margin and a return on equity equal to 15%
What is the company's total asset turnover? What is firm's equity multipler?

Attachments

Solution Preview

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Prob 13.4

Doublewide dealers has an ROA of 10%, a 2% profit margin and a return on equity equal to 15%
What is the company's total asset turnover? What is firm's equity multipler?

Ans.

ROA= NET INCOME/TOTAL ASSETS =10%

PROFIT MARGIN= NET INCOME/SALES =2% Sales /Net Income= 100/2 (Reciprocal of Profit Margin)

RETURN ON ...

Solution Summary

This explains the concept of various ratios, NPV, capital budgeting and other related concepts.

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