# Fundamentals of Corporate Finance, business and finance homework help

Complete the following Questions and Problems from each chapter as indicated.

Show all work and analysis.

Prepare in Microsoft® Excel® or Word.

• Fundamentals of Corporate Finance, Ch. 9: Net Present Value and Other Investment Criteria: Questions 7 & 8

8.Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?

9.Calculating NPV and IRR [LO1, 5] A project that provides annual cash flows of \$15,400 for nine years costs \$67,000 today. Is this a good project if the required return is 8 percent? What if it?s 20 percent? At what discount rate would you be indifferent between accepting the project and rejecting it?

• Fundamentals of Corporate Finance, Ch. 10: Making Capital Investment Decisions: Questions 3 & 13

3.Calculating Projected Net Income [LO1] A proposed new investment has projected sales of \$635,000. Variable costs are 44 percent of sales, and fixed costs are \$193,000; depreciation is \$54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?

13.Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of \$540,000. This cost will be depreciated straight-line to zero over the project?s five-year life, at the end of which the sausage system can be scrapped for \$80,000. The sausage system will save the firm \$170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of \$29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?

• Fundamentals of Corporate Finance, Ch. 11: Project Analysis Evaluation: Questions 1 & 7

1. Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is \$9.64 per unit, and the variable labor cost is \$8.63 per unit.

a. What is the variable cost per unit?

b. Suppose NSI incurs fixed costs of \$915,000 during a year in which total production is 215,000 units. What are the total costs for the year?

c. If the selling price is \$39.99 per unit, does NSI break even on a cash basis? If depreciation is \$465,000 per year, what is the accounting break-even point?

7.Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.

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