Question: Need help sloveing these problem using a BA II PLUS Texas Instruments calculator. trying to find out what number to plug into calculator. 1. Your
1. Your friend asks you to invest $10,000 in a business venture. Based on your estimates, you would receive nothing for four years, at the end of year 5 you would receive interest. on the investment compounded annually at 8%, and at the end of year 6 you would receive $14,500. If your estimates are correct, what would be the IRR on this investment? 2. Hook Industries capital structure consists of solely debt and equity, It can issue debt at rA =11% and its common stock currently pays a dividend of $2 per share. The stock's current price is $24.75, its dividend is expected to grow at a constant rate of 7% per year, its tax rate is 35% and its HACC is. 13.95\%. What percentage of the firm s capital structure consists of debt? 3. Davis industries has to decide between a gas ys. electrio powered forklift truck. The electric powered truck will cost $22,000 where as gas powered truck costs $17,500. The cost of capital is 12%. The life of both the trucks is 6 years. The net cash-flows from electric powered tuck will be $6,290 per year and $5,000 for the gas powered truck. The firm will choose only one of these trucks, Calculate NPV and IRR for each tuck and mike your recommendation
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