41. The primary reason that company projects with positive net present values are considered acceptable is that: 42. What is the net present value of a project with an initial cost of $ 36,900 and cash inflows of $ 13,400, $ 21,600, and $ 10,000 for Years 1 to 3, respectively? The discount rate is 13 percent. 43. Flatte Restaurant is considering the purchase of a $ 10,800 soufflé maker. The soufflé maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine will produce 2,400 soufflés per year, with each costing $ 2.80 to make and priced at $ 5.65. Assume that the discount rate is 16 percent and the tax rate is 35 percent. What is the NPV of the project?( Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) Should the company make the purchase? 44. A project costing $ 6,200 initially should produce cash inflows of $ 2,860 a year for three years. After the three years, the project will be shut down and will be sold at the end of Year 4 for an 45. Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $ 2.73 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which it will be worthless. The project is
What is the project’ s NPV?( Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.) 1. Financial managers should primarily strive to: 8. You invested in long-term corporate bonds and earned 6.1 percent. During that same time period, large-company stocks returned 12.6 percent, long-term government bonds returned 5.7 percent, U. S. Treasury bills returned 4.2 percent, and inflation averaged 3.8 percent. What average risk premium did you earn? 11. Which one of the following accounts is included in stockholders ' equity? 18. Galaxy United, Inc. What is the days ' sales in receivables?( use 2009 values) 19. Marcie ' s Mercantile wants to maintain its current dividend policy, which is a payout ratio of 35 percent. The firm does not want to increase its equity financing but is willing to maintain its current debt-equity ratio. Given these requirements, the maximum rate at which Marcie ' s can grow is equal to: 20. The maximum rate at which a firm can grow while maintaining a constant debt-equity ratio is best defined by its: 21. The return on equity can be calculated as: