ParkCrest, Incorporated, is considering a new 10-year expansion project with an initial fixed asset investment of $132,900. The fixed asset will be depreciated straight-line to zero over its 10-year tax life, after which time it will be worthless. No bonus depreciation will be taken. The project is estimated to generate $99,000 in annual sales, with costs of $34,300. The tax rate is 22 percent and the required return is 14.8 percent. What is the net present value of this project?

Consider the following information on three stocks: State of Economy Probability of State of Economy Rate of Return if State Occurs Stock A Stock B Stock C Boom .15 .27 .15 .11 Normal .65 .14 .11 .09 Bust .20 −.19 −.06 .05 A portfolio is invested 45 percent each in Stock A and Stock B, and 10 percent in Stock C. The expected T-bill rate is 3.2 percent. What is the expected risk premium on the portfolio?

You purchased 360 shares of stock at a price of $40.32 per share. Over the last year, you have received total dividend income of $405. What is the dividend yield?

Mariota’s has annual sales of $569,300 and cost of goods sold of $370,045. The beginning accounts receivable was $45,700 and the ending receivables is $53,200. How many days, on average, does it take the company to collect its accounts receivable? Assume 365 days per year.

Fitzgerald, Incorporated, is evaluating a project that will increase annual sales by $198,600 and annual cash costs by $94,500. The project will initially require $187,000 in fixed assets that will be depreciated straight-line to a zero book value over the four-year life of the project. No bonus depreciation will be taken. The applicable tax rate is 22 percent. What is the operating cash flow for this project?

Assume the market rate of return is 10.1 percent and the risk-free rate of return is 3.2 percent. Lexant stock has 2 percent less systematic risk than the market and has an actual return of 10.2 percent. This stock:

A project has a unit sales price of $13.39, a variable cost per unit of $5.48, fixed costs of $3,000, and depreciation expense of $830. Ignore taxes. What is the accounting break-even quantity?

A project has an initial cost of $31,300 and a three-year life. The company uses straight-line depreciation to a book value of zero over the life of the project. The projected net income from the project is $1,750, $2,100, and $1,700 per year for the next three years, respectively. What is the average accounting return?

Elkin Metals offers a discount of two percent on their commercial accounts if payment is received within ten days. Otherwise, payment is due within 30 days. This credit offering is referred to as the:

You purchased a stock at a price of $46.55. The stock paid a dividend of $1.79 per share and the stock price at the end of the year is $52.45. What was the dividend yield?