HW4 - 10 real rate of return 0.13 12.98 5 15 3 0.25-0.80 12...

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Sales 100% Working Capital 10% Costs 60% Tax 35% Discount 13% 1) Year 0 1 2 Initial Investment 1200000 Working Capital 50000 60000 70000 Chang In WC 50000 10000 10000 Sales 500000 600000 Costs 300000 360000 Depreciation 300000 300000 Pretax Profit -100000 -60000 Tax(.35) 0 0 Profit after taxes -100000 -60000 Cash Flow from operations 200000 240000 Total Cash Flow -1250000 190000 230000 NPV -$564,225.37
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3) Year 0 1 2 Initial -$10,000,000.00 Revenue $18,000,000.00 $18,000,000.00 Fixed Cost $4,000,000.00 $4,000,000.00 Variable Cost $12,000,000.00 $12,000,000.00 Profit -$10,000,000.00 $2,000,000.00 $2,000,000.00 Accounting Profit $0.00 12000 NVP -$2,790,447.60 13549 4) 100 40 4000 dividend 3 p1 44 percentage return 0.18 17.50% dividend yield 0.08 7.50% percentage capital gain 0.1
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Unformatted text preview: 10% real rate of return 0.13 12.98% 5) 15 3 0.25-0.80 12 0.25-0.20 17 0.25 0.13 30 0.25 1.00 E = 3.33% SD = 4.56% Varience = 42.33% Standard Deviation 65.06% 3 4 40000-30000-40000 700000 400000 420000 240000 300000 300000-20000-140000-20000-140000 280000 160000 310000 200000 12000 3 4 5 $18,000,000.00 $18,000,000.00 $18,000,000.00 $4,000,000.00 $4,000,000.00 $4,000,000.00 $12,000,000.00 $12,000,000.00 $12,000,000.00 $2,000,000.00 $2,000,000.00 $2,000,000.00 this is = to the percentage sd so I just took (-.8 - 3.33)^2-0.20 0.69-0.05 0.05 0.03 0.01 0.25 0.93 3.33% 1.69 this is = 1.69/4...
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HW4 - 10 real rate of return 0.13 12.98 5 15 3 0.25-0.80 12...

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