Stellan Manufacturing is considering the following two investment​ proposals: Proposal X

Proposal Y
Investment

​$730,000

​$504,000
Useful life

5 years

4 years
Estimated annual net cash inflows received at the end of each year

​$156,000

​$100,000
Residual value

​$50,000

​$0
Depreciation method

Straightminus
line

Straightminus
line
Annual discount rate

​10%

​9%
Compute the present value of the future cash inflows from Proposal Y.
Present value of an ordinary annuity of​ $1:

​8%

​9%

​10%
1

0.926

0.917

0.909
2

1.783

1.759

1.736
3

2.577

2.531

2.487
4

3.312

3.240

3.170
5

3.993

3.809

3.791
6

4.623

4.486

4.355
A.
​$252,000
B.
​$292,320
C.
​$268,884
D.
​$324,000

Pennewell publishing inc. (pp) is a zero growth company. it currently has zero debt and its earnings before interest and taxes (ebit) are $80,000. pp's current cost of equity is 10%, and its tax rate is 40%. the firm has 10,000 shares of common stock outstanding selling at a price per share of $48.00. refer to the data for pennewell publishing inc. (pp). pp is considering changing its capital structure to one with 30% debt and 70% equity, based on market values. the debt would have an interest rate of 8%. the new funds would be used to repurchase stock. it is estimated that the increase in risk resulting from the added leverage would cause the required rate of return on equity to rise to 12%. if this plan were carried out, what would be pp's new value of operations? a. $484,359 b. $521,173 c. $584,653 d. $560,748 e. $487,805

Large public water and sewer companies often become monopolies because they benefit from although the company faces high start-up costs, the firm experiences average production costs as it expands and adds more customers. smaller competitors would experience average costs and would be less

Bcorporation, a merchandising company, reported the following results for october: sales $ 490,000 cost of goods sold (all variable) $ 169,700 total variable selling expense $ 24,200 total fixed selling expense $ 21,700 total variable administrative expense $ 13,200 total fixed administrative expense $ 33,600 the contribution margin for october is: