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Brutus Corporation is considering adding a new factory to increase its productive capabilities. The new factory will have an immediate capital expenditure of 100 million (time 0) and a delayed investment needed after two years, which is included in the FCF below. However, if Brutus decides to build the factory, the increase in production will create incremental FCF’s of 360 million in the first year (time 1), negative 431 million in the second year (time 2), and 171.6 million in the third year (time 3). Your brand-new analyst tells you that the IRR for this factory project is 20%. Assuming Brutus’s discount rate is 12%, should the firm pursue this new factory?

Brutus Co. is buying 500 tires for its fleet of vehicles. One supplier offers to supply the tires for $80 per tire, payable in one year. Another supplier will supply the tires for $16,000 down today, then $45 per tire, payable in one year. What is the difference in PV between the first and the second offer, assuming interest rates are 9.1%?

Brutus Buckeye Exploration has a current stock price of $3.00 and is expected to pays its expected annual dividend of $0.28 next year. Which of the following is closest to the company’s equity cost of capital if long term growth is expected to be 2%?

Cholinesterase inhibitors are associated with the risk of falls because these medications increase levels of:

Persons who do not maintain a socially acceptable level of self-care would be engaging in self-neglect.

Brewtus is considering adding a microbrewery onto one of its existing restaurants. This will entail an increase in inventory of $8700, an increase in accounts payables of $2300, and an increase in property, plant, and equipment of $48,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is ________.

A stock has a beta of 0.8, the risk-free rate is 2%, and the expected market return is 10%. What is the expected return of the stock?

You purchased a machine for $1 million three years ago and have been applying straight-line depreciation to zero for a five-year life. Your tax rate is 21%. If you sell the machine today (after three years of depreciation) for $550,000, what is your incremental cash flow from selling the machine?

Brutus Co plans to launch a new type of indelible ink pen. Advertising for the new product will be heavy and will cost the company $8 million, although the company expects general revenues of $280 million next year from sources other than sales of the new pen. If the company has a corporate tax-rate of 35% on its pretax income, what effect will the advertising for the new pen have on its taxes?

Which of the following is a disadvantage of the Net Present Value rule?