Question: Please help with all asap. Will give thumbs up. 35- The managers of XYZ Inc. plan to manufacture semi-conductors for cars. They expect to sell
Please help with all asap. Will give thumbs up.
35- The managers of XYZ Inc. plan to manufacture semi-conductors for cars. They expect to sell 200 semi-conductors annually for the next five years. The initial investment will cost a total of $800,000 and will be depreciated using the MACRS three-year class. The firm expects to be able to sell the manufacturing equipment for $200,000 at the end of the project. Labour and materials costs total $500 per semi-conductors, fixed costs are $125,000 per year and auto plants will pay $3,000 retail per semi-conductors. Assume a 35% tax rate and a 12% discount rate. What is the cash flow for the project in year 1?
A) $97,500
B) $449,432
C) $337,074
D) $203,996
E) $418,324
33- Consider a three-year project with the following information: initial fixed asset investment = $420,000; straight-line depreciation to zero over the three year life; zero salvage value; price = $25 per unit; variable cost = $13 per unit; fixed costs = $112,000; quantity sold = 110,000 units; tax rate = 31.5%. What is the degree of operating leverage at the given level of output?
A) 1.13
B) 1.15
C) 1.17
D) 1.18
E) None of the above
31- A stock produced total returns of 9.78%, 13.61%, 1.19%, and 4.90% over the past four years, respectively. Based on this information, calculate the standard deviation? (use 5 decimal points when calculating variance and standard deviation)
A) 2.10%
B) 3.25%
C) 4.32%
D) 5.45%
E) 8.35%
26- A portfolio has an expected return of 12.38%. The portfolio consists of stock A with an expected return of 7.52% and stock B with a beta of 1.39. The risk-free rate of return is 2.5% and the market risk premium is 7.5%. What is the portfolio weight of Stock B?
A) 10.08%
B) 39.58%
C) 60.28%
D) 71.21%
E) 89.92%
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