ConocoPhillips Natural Gas Wellhead Project
Given
ConocoPhillips's Cost of Capital for project
Project life
15.00%
10 years
Solution
Solution Legend
1.
Investment
Increase in NWC
MACRS Depr Rate (7 year)
Natural Gas Wellhead Price (per MCF)
Volume (MCF/da

Question 1
3.33 out of 3.33 points
The Fed refers to:
Selected Answer:
Correct
Answer:
the Federal Reserve
System.
Question 2
3.33 out of 3.33 points
An example of a personal opportunity cost would be:
Selected Answer:
Correct
Answer:
time comparing sev

Question 1
1. A person has $1,250 in liabilities, monthly saving of $200, and monthly gross income of
$2,500. What is the person's savings ratio?
0.08
Question 2
1. Amy Farmer has developed a budget that she follows each month. She went to the office
supp

Problem210A&B
PROBLEM 2-10
Given
Machine cost
Depreciation
Annual cost savings
Machine life
Salvage value (before tax)
Tax rate
Discount rate
Solution Legend
$760,000
Straight line
250,000
5
30%
9%
= Value given in problem
= Formula/Calculation/Analysis r

PROBLEM 3-1: Clayton Manufacturing Company
Given
EBITDA (Year 1)
Growth Rate in EBITDA
Initial investment
Depreciation (Straight line) over
Estimated salvage value
Tax rate
Cost of capital
Solution Legend
$200,000
5%
$800,000
5 years
$35%
12%
= Value give

PROBLEM 8-2
Given
Solution Legend
Per Square Foot
A
Building size (Sq. ft.)
Rent
Maintenance (fixed cost)
Net Operating Income
% Change in NOI
Selling Price Information
Sales multiple for NOI/sq. ft.
Capitalization rate (1/Sales multiple)
Estimated proper

PROBLEM 8-2
Given
Solution Legend
Per Square Foot
A
Building size (Sq. ft.)
Rent
Maintenance (fixed cost)
Net Operating Income
$
B
100 $
(23)
77 $
$
120 $
(30)
90 $
Total Square Footage
A
B
80,000
90,000
8,000,000 $
10,800,000
(1,840,000)
(2,700,000)
6,16

PROBLEM 2-3
Given
Growth rate for years 1-5
EBIT (1)
CAPEX for year 0
CAPEX for years 1-5
Depreciation Expense
Tax rate
Debt Retirements for years 1-5
New working capital for years 1-5
$
$
$
$
Solution Legend
= Value given in problem
= Formula/Calculation

PROBLEM 4-4
Given
Liabilities and Owner's Capital
Current liabilities
Accounts payable
Notes payable
Other current liabilities`
Total current liabilities
Long-term debt (8.5% interest paid
semi-annually, due in 2015)
Total liabilities
December 31, 2006
Ba