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Problem 5.17
Problem 5.21
Problem 6.19
Problem 6.27
Problem 7.16
Problem 8.24
Problem 9.15
Problem 5.17
Your finance text book sold 53,250 copies in its first year. The publi
shing company expects the sales to grow at a rate of 20 percent for
the next three years, and by 10 percent in the fourth year. Calculat
e the total number of copies that the publisher expects to sell in ye
ar 3 and 4. (If you solve this problem with algebra round intermedi
ate calculations to 6 decimal places, in all cases round your final an
swers to the nearest whole number.)
Week 6
Homework
Complete the following problems. You should do this work in excel
. A set of ungraded practice problems similar to the homework is p
rovided in the week six material to help you do this assignment.
Please post your answers in the classroom discussion section unde
rneath the week six assignment.
1.Net Present Value: Johnson Complex Fabrications is a metal parts
manufacturing company. It has developed a new process for prod
ucing extruded aluminum tubing. The process requires $1,968,450
initial investment. It expected to have a life of five years and would
produce net cash inflows for each of the next five years: year 1 $51
2,496; year 2 $242,637; year 3 $814,558; year 4 $887,225 and year
5 $712,642.
Resources:
Harvard Business Publishing: Working Capital Simulation: Managin
g Growth Assignment
Ch. 1 - 21 ofFundamentals of Corporate Finance
WileyPLUS Assignments
All additional resources from each week
Review the following scenario:
Acting as the CEO of a small company, you will apply the principles
of capital budgeting to invest in growth and cash flow improvemen
t opportunities in three phases over 10 simulated years. Each oppo
rtunity has a unique financial profile and you must analyze the effe
cts on working capital. Examples of opportunities include taking on
new customers, capitalizing on supplier discounts, and reducing in
ventory.
Problem 10.14
Briarcrest Condiments is a spice-making firm. Recently, it develope
d a new process for producing spices. The process requires new m
achinery that would cost $1,968,450. Have a life of five years, and
would produce the cash flows shown in the following table.
Year Cash Flow
1 $512,496
2 -242,637
3 814,558
4 887,225
5 712,642
What is the NPV if the discount rate is 15.9 percent? (Enter negativ
e amounts using negative sign e.g. -45.25. Round answer to 2 deci
mal places, e.g. 15.25.)