Danford Enterprises can invest in one of two mutually exclusive machines that will make a product it needs for the next 6 years.  Machine X costs $10 million but realizes after-tax inflows of $4.3 million per year for 3 years, after which it must be replaced.  Machine Y costs $16 million and realizes after-tax inflows of $4.6 million per year for 6 years.  Based on the firm’s cost of capital of 8 percent, the NPV of Machine Y is $5,265,246, with an equivalent annual annuity (EAA) of $1,138,954 per year.  Calculate the EAA of Machine X. Compare your result to that of Machine Y and decide which to recommend.

A firm with a 9 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$15,000 $5,600 $6,500 $4,800 $5,300 Calculate the project’s profitability index (PI).

Spelling, punctuation, and accent mark count toward grading.  Misspelled, wrong tense, or wrong form of verbal conjugation (- full points worth).  Missing article, conjunction, or preposition (-1/2 point). Missing accents from the words you have been exposed to during the chapter, punctuation–periods, capital letters, upside-down exclamation or question marks–If needed (-1/4 points). Missing a complete sentence (-1 point) per sentence.   Accent Marks Please write me a short message, in parenthesis, next to the word that needs it, for instance: You need to write  ¡Mi mamá comprará el juguete mañana para Iván! You will write it like (upside-down exclamation mark) Mi mama (accent on the 2nd a) comprara (accent on the second a) el juguete manana (tilde over the 1st n) para Ivan (accent on a)! Notice that when there is more than one repeated vowel/consonant, I used more details on which vowel/consonant the accent mark was placed–mamá, mañana, etc. Unlike the name “Ivan,” which has one accentuated vowel.   Directions Look at the report and answer the questions with sentences. Write the numerals as words as you have learned in Chapter 2. Estadísticas Escolares Estudiantes Información académica  Número total de estudiantes: 2.650      Especialidades: 35  Número de chicos: 1.134    Actividades extraescolares: 42  Número de chicas: 1.516   Profesores: 105   ¿Cuántos estudiantes, en total, hay en la escuela? Please answer all the following questions in complete Spanish sentences, not a one-word answer.  Remember, do not write the number digits; spell out the number, like fourteen, and do not use 14.  

Leslie Industries is considering the following independent projects for the coming year: Project RequiredInvestment ExpectedRate of Return Risk X $3 million 12.0% High Y   2 million 10.0% Average Z   5 million 10.5% Low Leslie’s WACC is 11.5 percent, but it adjusts for risk by adding 2 percent to the WACC for high-risk projects and subtracting 2 percent for low-risk projects.  Which project(s) should Leslie accept assuming it faces no capital constraints?

A firm with a 10 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$9,000 $3,200 $4,100 $4,400 $3,700 Calculate the project’s profitability index (PI).

Coronado & Associates’ common stock currently trades at $60 a share.  It is expected to pay an annual dividend of $2.40 a share at the end of the year (D1 = $2.40), and the constant growth rate is 7.6 percent a year.  What is the company’s cost of common equity if all of its equity comes from retained earnings?

A firm with a 10.5 percent cost of capital is considering a project for this year’s capital budget.  The project’s expected after-tax cash flows are as follows: Year: 0 1 2 3 4 Cash flow: -$13,000 $4,700 $4,400 $4,600 $6,400 Calculate the project’s payback period.

Spelling, punctuation, and accent mark count toward grading.  Misspelled, wrong tense, or wrong form of verbal conjugation (- full points worth).  Missing article or preposition (-1/2 point). Missing accents from the words you have been exposed to during the chapter, and punctuation–periods, capital letters, upside-down exclamation or question marks–If needed (-1/4 points).   Accent Marks Please write me a short message, in parenthesis, next to the word that needs it, for instance: You need to write  ¡Mi mamá comprará el juguete mañana para Iván! You will write it like (upside-down exclamation mark) Mi mama (accent on the 2nd a) comprara (accent on the second a) el juguete manana (tilde over the 1st n) para Ivan (accent on a)! Notice that when there is more than one repeated vowel/consonant, I used more details on which vowel/consonant the accent mark was placed–mamá, mañana, etc. Unlike the name “Ivan” which has one accentuated vowel.   Directions Singular or plural? Write the singular or the plural form of the nouns. Follow the model.  Model: –Hay una maleta.    No. Hay cuatro _________ . The answer is maletas.     Hay un diccionario.   No. Hay cuatro .

A firm with a 10 percent cost of capital is evaluating two projects for this year’s capital budget.  The projects’ expected after-tax cash flows are as follows: Year: 0 1 2 3 Project X: -$15,000 $6,200 $8,300 $5,700 Project Y: -$9,000 $3,700 $3,200 $3,300 If Projects X and Y are mutually exclusive, which one(s) should the firm adopt?

Spelling, punctuation, and accent mark count toward grading.  Misspelled, wrong tense, or wrong form of verbal conjugation (- full points worth). Missing article or preposition (-1/2 point). Missing accents from the words you have been exposed to during the chapter, and punctuation–periods, capital letters, upside-down exclamation or question marks–If needed (-1/4 points).   Accent Marks Please write me a short message, in parenthesis, next to the word that needs it, for instance: You need to write  ¡Mi mamá comprará el juguete mañana para Iván! You will write it like (upside-down exclamation mark) Mi mama (accent on the 2nd a) comprara (accent on the second a) el juguete manana (tilde over the 1st n) para Ivan (accent on a)! Notice that when there is more than one repeated vowel/consonant, I used more details on which vowel/consonant the accent mark was placed–mamá, mañana, etc. Unlike the name “Ivan” which has one accentuated vowel.   Directions: La hora Josefa y Jorge meet on campus. Answer the question in Spanish in a complete sentence. Please write the time as words, for example, 3:45 pm is three forty-five pm.   ¿Y la clase de geografía? La clase (is at 4:30 p.m.) Please use a complete Spanish sentence to answer the question.