Corporate Finance (12th Edition)
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Tthe opportunity cost refers to the value of the ... more
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The decline in the sales of the company's other ... more
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A firm would prefer the MACRS depreciation over ... more
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It is not a reasonable assumption. The assumption ... more
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The standalone principle suggests that the ... more
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The EAC analysis method is appropriate for ... more
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The statement is incorrect as the depreciation ... more
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The textbook publisher should consider the erosion... more
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Yes, the possible damage to Company's reputation ... more
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A company would decide to enter a market when it ... more
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Company P needs to consider the substantial profit... more
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Since the net present value of the project is ... more
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-$27,938.63 ; Using the straight-line method, ... more
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Net Cash Flows for: Year 0: -$1,670,000Year 1: $... more
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Year 1: $579,571.50Year 2: $619,047.50Year 3: $962... more
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Year 1: $816,250Year 2: $461,250Year 3: $883,750 ... more
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17.70% ; Using the straight-line method, calculate... more
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-$26,959.71 ; Divide the cost of the asset of $375... more
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-$13,375.69 ; Compute the after-tax salvage value... more
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$1,381,789 ; The cost of the asset is $7,600,000 ... more
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Since the NPV of the project is positive; ... more
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T II should be preferred because its EAC of $108,... more
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The company should undertake the new project. ; ... more
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$122,417.01 ; Calculate the tax on profit and add ... more
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The company should choose System A. ; Global ... more
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The company should go with System B. ; Global ... more
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$74,560.70 ; Calculate the aftertax salvage value... more
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The company should select Machine B. ; Global ... more
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The company should select Project A. ; Global ... more
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$36,956,312 ; Compute the after tax revenue in ... more
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Year 0 = -$450,000Year 1 = $166,790Year 2 = $171,... more
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$4,928,571.43 ; Identify the information to ... more
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-$39,399.77 ; Calculate the tax on profit and add ... more
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No, the company should not invest in the project... more
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New machine: NPV = $2,693,239.49IRR = 17.58% ... more
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Yes, the company should invest in the project. ; ... more
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$400,854.42 ; Compute the amount of depreciation ... more
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$764,124.06 ; Compute the after-tax salvage value... more
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$837,478.52 ; Compute after-tax salvage value, ... more
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The company should buy the new machine. ; Global ... more
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$506,020.82 ; Compute the revenue for Year 1 by ... more
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NPV: $9,673,430.45IRR: 36.39% ; Calculate the ... more
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$188,714.33 ; Calculate the depreciation (D) using... more
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$18.27 per carton ; Compute after-tax salvage ... more
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$113.24 ; Identify all the required information to... more
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Since the differential of NPV of the decision to ... more
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$1,559,883.20 ; Compute the real value of each ... more
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$35,849,921.91 ; Compute the real labor cost and ... more
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The company should manufacture the headache and ... more
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Payback period = 3.26 yearsProfitability index = 1... more
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NPV: $7,15,51,111.90 Payback Period: 2.01 ... more