Business, 23.07.2019 04:20 lizbethmillanvazquez

The yurdone corporation wants to set up a private cemetery business. according to the cfo, barry m. deep, business is "looking up." as a result, the cemetery project will provide a net cash inflow of $101,000 for the firm during the first year, and the cash flows are projected to grow at a rate of 3 percent per year forever. the project requires an initial investment of $1,540,000.
(a) if yurdone requires a return of 13 percent on such undertakings, what is the npv of the project? (do not round intermediate calculations. round your answer to 2 decimal places (e. g., 32.
(b) should the cemetery business be started?
(c) the company is somewhat unsure about the assumption of a growth rate of 5.9 percent its cash flows. at what constant growth rate would the company just break even if it still required a return of 13 percent on its investment? (do not round intermediate calculations. enter your answer as a percentage rounded to 2 decimal places (e. g., 32.

Answers: 2

Show answers

Another question on Business

Business, 22.06.2019 20:10

Your sister is thinking about starting a new business. the company would require $375,000 of assets, and it would be financed entirely with common stock. she will go forward only if she thinks the firm can provide a 13.5% return on the invested capital, which means that the firm must have an roe of 13.5%. how much net income must be expected to warrant starting the business? a. $41,234b. $43,405c. $45,689d. $48,094e. $50,625

Answers: 3

Answer

Business, 22.06.2019 20:20

Faldo corp sells on terms that allow customers 45 days to pay for merchandise. its sales last year were $325,000, and its year-end receivables were $60,000. if its dso is less than the 45-day credit period, then customers are paying on time. otherwise, they are paying late. by how much are customers paying early or late? base your answer on this equation: dso - credit period = days early or late, and use a 365-day year when calculating the dso. a positive answer indicates late payments, while a negative answer indicates early payments.a. 21.27b. 22.38c. 23.50d. 24.68e. 25.91b

Answers: 2

Answer

Business, 22.06.2019 20:40

If the ceo of a large, diversified, firm were filling out a fitness report on a division manager (i.e., "grading" the manager), which of the following situations would be likely to cause the manager to receive a better grade? in all cases, assume that other things are held constant.a. the division's basic earning power ratio is above the average of other firms in its industry.b. the division's total assets turnover ratio is below the average for other firms in its industry.c. the division's debt ratio is above the average for other firms in the industry.d. the division's inventory turnover is 6, whereas the average for its competitors is 8.e. the division's dso (days' sales outstanding) is 40, whereas the average for its competitors is 30.

Answers: 1

Answer

Business, 23.06.2019 07:30

Me this has caused me stress and my head hurts

Answers: 1

Answer

You know the right answer?

The yurdone corporation wants to set up a private cemetery business. according to the cfo, barry m....

Questions