Blog

An asset “Equipment 1” has a net book value of $ 19,000 at the moment of sale. What are the after-tax proceeds (i.e., after-tax cash flow) for a firm in the 27 % marginal tax bracket if this asset is sold for $ 15,000 cash?

In my lectures I showed how to conduct “What-if sensitivity” analysis in Excel looking for the changes in the results, depending on the change of a single variable at a time. In particular, the exercise included the request in Excel to calculate a certain tax rate that would change the Net Present Value from an original amount to another precisely specified amount (e.g., $ 4,000). What was the name of the function that was used to conduct this type of sensitivity analysis?

The [term1] [term2] value of the project is the difference between the present value of future cash inflows and the present value of future cash outflows of an investment project (2 words, 1 point for each, up to 2 points).

Below is the table of the after-tax cashflows for the project discounted at 10 % discount rate: What is the present value payback period in this case rounded to one digit (assuming 10 % discount rate)?

Which of the following is the major, most important and difficult to overcome challenge for estimation of revenues (or benefits), costs and cash flows of a capital investment projects, especially for projects with long lives? (choose the best answer)

If a company is in the situation of having unlimited capital funds, the best decision rule, considering only financial factors, is for the company to invest in all projects in which:

Micro Advantage Inc. hast $ 6,000,000 preferred stock outstanding that it sold for $ 21 per share. The preferred stock has a per share value of $20 and pays $2 dividend per year. The current market price is $ 26 per share. The firm’s tax bracket is 20 %. What is the after-tax cost of the preferred stock?

________ and ________ are molecular processes that convert genetic information into functional proteins.

Thick-walled cells of Nostoc and Anabaena that can withstand freezing and other adverse conditions are called

Multicellular forms are found in both phases of an alternation of generation life cycle.