Question: PLEASE SOLVE USING BA II FINANCE CALCULATOR! Will Rate all Answers! 10. Consider the following series of cash flows, for a firm having a cost

 PLEASE SOLVE USING BA II FINANCE CALCULATOR! Will Rate all Answers!

PLEASE SOLVE USING BA II FINANCE CALCULATOR! Will Rate all Answers!

10. Consider the following series of cash flows, for a firm having a cost of capital of 10%. (Negative numbers are in parentheses.) Year Cash Flow 0 1 2 3 4 5 6 7 8 9 10 11 (800,000) 160,000 160,000 160,000 160,000 -0- 150,000 150,000 150,000 (10,000) (10,000) 500,000 A. Calculate the net present value. What is your decision? B. Calculate the payback period. If the maximum acceptable payback period is 4 years, what is your decision? C. Calculate the discounted payback period. If the maximum acceptable discounted payback period is 4 years, what is your decision? D. Calculate the Internal Rate of Return. What is your decision? E. Calculate the Modified Internal Rate of Return. What is your decision? 11. Suppose that a firm sells a single product having a sales price of $5.00 per unit. Variable operating costs are $3.00 per unit, while fixed operating costs are $20,000. If the firm's current sales volume is 50,000 units, what is its degree of operating leverage? 12. Suppose that a firm has EBIT of $500,000. Its annual interest costs are $150,000. The firm has 50,000 shares of preferred stock, with an annual dividend of $2 per share. If the firm has a 30% tax rate, what is its degree of financial leverage

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