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Westland Manufacturing spends $20,000 to update the lighting in its factory to more energy-efficient LED fixtures. This will save the company $4,000 per year in electricity costs. The company estimates that these fixtures will last for 10 years. If the company’s cost of funds is 8%, what is the NPV of this project?

What is the payback of an investment that requires a 10 percent minimum rate of return and has the following projected cash flows: Yr0 = -100 , Yr1 = 25, Yr2 = 35, Yr3 = 45, Yr4 = 35, and Yr5 = 30?

If Westland Manufacturing finds that its cost of funds is 11%, what will happen to the NPV of the project in problem 3?

ABC Company can sell common shares at $30 per share and can obtain debt funding at 8 percent. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm’s beta is 0.9. It has a targeted debt-to-equity ratio of 1:1. What is its weighted average cost of capital?

Explain in your own words what is the efficient market hypothesis (EMH) and what are its different forms? Describe each form and its characteristics. Your answer should be no more than 300 words.

The following video is needed for Question 10.What is preferred stock – https://www.youtube.com/embed/MEMMVBJuJ7sComplete the following table which compares the 3 financial instruments bonds, preferred stock and common stock:

What is a random walk in the context of stock prices? Use a graph to demonstrate your answer. Your answer should be no more than 150 words.The following videos are needed for Questions 7,8 and 9.Efficient Markets – https://www.youtube.com/embed/L6zk0E6YApwEfficient Market Theory https://www.youtube.com/watch?v=BNLPHZjY0pc 

View the video Calculate the Future Value of Uneven Cash Flows at the link below:https://www.youtube.com/embed/dgelQWX59UI Using Excel, determine the future value of this series of expected unequal receipts five years from now if each payment is received at the end of each year, beginning one year from now, and the interest rate is 6% compounded annually.End of year 1: $3,800End of year 2: $4,400End of year 3: $5,100End of year 4: $5,800Note: Since the last payment is at the end of year 4, this is the start of year 5 so no compounding needed for this cash flow.2. When using Excel’s built-in Future Value function, why does Dr. Konners enter dollar amounts as negative numbers?

View the video Calculate the Present Value for Multiple Cash Flows at the link below:https://www.youtube.com/embed/HxtM34msWGI  1. Provide a practical example from your own personal financial management of why an understanding ofthe present value of future cash flows would be important.2. You expect to receive $10,800 one year from now, $17,400 two years from now, nothing at the end of the third year, and $24,000 four years from now. If you discount all your cash flows at 7%, then with annualcompounding, what are these future cash amounts worth to you in total today? Check you answers using Excel. Submit both your hand-written calculations and your Excel file.  

Joshua wants to create a fund today that will provide a 4% guaranteed compounded annual rate. He wants to withdraw $15,000 one year from now and $27,000 two years from now, after which the fund will be depleted. How much must he invest today to achieve this goal?