Chrome - Module 5 Practice Capital Decisions (Question 3) Lyryx Learning IncModule 5 Practice: Capital Decisions(Question 3)Name: Miguel ArdilaDate: 2024−04−14 17:23Question 3 [7 points]Stefan has received three offers to purchase his used combine. Farmer A has offered him $162,000 today and $98,000 three years from now. Farmer B has offered him $47,000 today and $36,000 every six months for three years. Farmer C has offered him four annual payments of $68,300 starting today. The prevailing interest rates are 8.75% compounded annually. For full marks your answer(s) should be rounded to the nearest dollar.a) Calculate the NPV of the offer from Farmer A.NPV=$255,975.00b) Calculate the NPV of the offer from Farmer B. NPV =$0.00c) Calculate the NPV of the offer from Farmer C.NPV=$0.00d) Which offer should Stefan accept?Stefan should accept the offer from (select one).Marking:a) Your answer was: $255,975The correct answer was: $238,197The periodic rate is computed by dividing the nominal rate by the number of compounding periods per year, so a 7 co: Get tutor help
[3/5 Points]DETAILSMYNOIESSketch the solld whose volume is glven by the lterated integral.∫01∫01(9−x−6y)dxdyDescribe your sketch.The solld has a rectangle In the xy-plane..The solld has a trapezoldin the xz-plane.The solld has a trapezoidIn the yz-plane.The highest point of the top of the solld is (x,y,z)=(□).The lowest point of the top of the solid is (x,y,z)=(□).Submit Answer Get tutor helpBHP Billiton, an Australian company, just paid $0.85 as a dividend, which is expected to grow at 6.0 per cent. Its most recent stock price is $82. Further, the company has a debt issue outstanding with 23 years to maturity that is quoted at 95 per cent of face value. The issue makes semiannual payments and has an embedded cost of 6 per cent annually. It considers a debt-equity ratio of 0.60 and a 25 per cent corporate tax rate. In this year, the company has an EBIT of $3.15 million. Depreciation, the increase in net working capital, and capital spending were $265,000, 6.00, and 6.01, respectively. Therefore, you expect that over the next five years, EBIT will grow at 6.02 per cent per year, depreciation and capital spending will grow at 6.02 per cent per year, and NWC will grow at 6.04 per cent per year. It also has 6.05 million in debt and 6.06 shares outstanding. After Year−5, the adjusted cash flow from assets is expected to grow at 6.07 per cent indefinitely. a) What is the cost of equity b) What is the post tax cost of debt c) What is the WACC d) What is the value of the company e) What is the price per share Get tutor helpDantzler Corporation is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 6% rate. Dantzler's WACC is 14%. Year 0 1 2 3 ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ....... ...... FCF ($ millions) - $15 $30 $49 What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyond Year 3 discounted back to Year 3.) Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million What is the firm's market value today? Assume that Dantzler has zero nonoperating assets. Enter your answer in millions. For example, an answer of $13,550,000 should be entered as 13.55. Do not round intermediate calculations. Round your answer to two decimal places. $ million Suppose Dantzler has 14%2 million of debt and 14%3 million shares of stock outstanding. What is your estimate of the current price per share? Write out your answer completely. For example, 14%4 million should be entered as 14%5. Do not round intermediate calculations. Round your answer to the nearest cent. $ Get tutor helpBurlington Paper Goods is considering purchasing a new delivery truck. Burlingten uses the average rate of return method to evaluate capital asset decisions.If the initial cost of the truck is $67,000 with a salvage value of $7,000, and it has a before tax average annual net cash flow of $30,000 and an annual depreciation of $15,000, what is the average rate of retum on the truck? Asaume a 35% tax rate.a) 26.35%b) 37.23%c) 42.59%d) 18.27% Get tutor helpBurlington Paper Goods is considering purchasing a new delivery truck. Burlington uses the average rate of return method to evaluate capital asset decisions.If the initial cost of the truck is $67,000 with a salvage value of $7,000, and it has a before tax average annual net cash fiow of $30,000 and an annual depreciation of $15,000, what is the average rate of retum on the truck Assume a 35% tax rate.a) 26.35%b) 37.23%c) 42.59%d) 18.27% Get tutor help
