Complete the spreadsheet to estimate the project’s annual after-tax cash flows…

Name _____________________________ Date____________ Chapter 7 Problem 12 Complete the spreadsheet to estimate the project’s annual after-tax cash flows. What is the investment’s net present value at a discount rate of 10 percent? What is the investment’s internal rate of return? Present the factors used in the financial calculator ____________________ Facts and Assumptions Equipment initial cost $350,000 Depreciable life yrs. 7 Expected life yrs. 10 Salvage value $0 Straight line depreciation EBIT in year 1 $28,000 Tax rate 38% Growth rate in EBIT 3% Discount rate 10% Year 0 1 2 3 4 5 6 7 8 9 10 Initial cost 350,000 Annual depreciation (cash to be added) $50,000 50,000 50,000 EBIT $28,000 Taxes $10,640 EBIT after tax $17,360 After-tax cash flow (350,000) $67,360 How does the internal rate of return change if the discount rate equals 20 percent? Internal Rate of Return at 20% Present the factors used in the financial calculator ____________________

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HC2091: Finance for Business

Trimester 3 2018

Group Assignment

Assessment Value: 30%

Due Date: Sunday 23:59 pm, Week 10
Group: 2 – 5 students
Length: 3000 words ± 10%

INSTRUCTIONS
Students are required to form a group to study, undertake research, analyse and conduct academic
work within the areas of business finance covered in learning materials Topics 1 to 10 inclusive.
The assignment should examine the main issues, including underlying theories, implement
performance measures used and explain the firm financial performance. Your group is strongly
advised to reference professional websites, journal articles and text books in this assignment (case
study).
Tasks
This assessment task is a written report and analysis of the financial performance of a selected
listed company on the ASX in order to provide financial and investment advice to a wealthy
investor. This assignment requires your group to undertake a comprehensive examination of a
firm’s financial performance based on update financial statements of the chosen companies.
Group Arrangement
This assignment must be completed IN Group. Each group can be from 2 to maximum 5 student
members. Each group will choose 1 company and once the company has been chosen, the other
group cannot choose the same company. First come first served rule applies here, it means you
need to form your group, choose on company from the list of ASX and register them with your
lecturer as soon as possible. Once your lecturer registers your chosen company, it cannot be
chosen by any other group. Your lecturer then will put your group on Black Board to enable you
to interact and discuss on the issues of your group assignment using Black Board environment.
However, face to face meeting, discussion and other methods of communication are needed to
ensure quality of group work. Each group needs to have your own arrangement so that all the
group members will contribute…

Attachments:

HC2091-Group-….pdf

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