ACCT-3380 Group Project
March12, 2013
Question 1 Solutions
Step 1:
PVInitial Investment
Alternative A
Initial Cost Trade in Installation Costs
$125,000
Step 2:
N
Re venue Expenses
PVafter tex
(1 T )
(1 k )t
NetBenifit
t
1
115,000
95,000
55,000
45,00
1
Mini Case Tuxedo Air
PART A Ed Cowan was recently hired by Tuxedo Air Inc. to assist the organization with its financial planning and to evaluate the
organization's performance. Ed graduated from university six years ago with a finance degree. He has be
Chapter
7
Interest Rates and Bond Valuation
Key Concepts and Skills
Know the important bond features and bond types
Understand bond values and why they fluctuate
Understand bond ratings and what they mean
Understand the impact of inflation on interest rat
Chapter
3
Working With Financial
Statements
Key Concepts and Skills
Understand sources and uses of cash and the Statement
of Cash Flows
Know how to standardize financial statements for
comparison purposes
Know how to compute and interpret important fin
Chapter
2
Financial Statements, Taxes and Cash
Flow
Chapter Outline
The Balance Sheet
The Income Statement
Cash Flow
Taxes
Capital Cost Allowance
Summary and Conclusions
2-2
Key Concepts and Skills
Know the difference between book value
and market value
Chapter
6
Discounted Cash Flow Valuation
Key Concepts and Skills
Be able to compute the future value of multiple cash
flows
Be able to compute the present value of multiple cash
flows
Be able to compute loan payments
Be able to find the interest rate
ACCT 3380 SECTION R10 Summer-2016
Managerial Finance
Instructor: John Shepherd
GROUP Charlie
Amar Cheema 100309597
Chantelle Morzo 100244806
Jasmine Sese 100249222
Jiannig (Alex) Yang 100305122
DECLARATION
I hereby declare that all of the work in this ass
Chapter 7
Coupon: stated interest payment made on bond
Face value (par value): principal amount of a bond that is repaid at the end of the
term
Coupon rate: annual coupon divided by the face value of a bond
When interest rates rises, PV of bonds remainin
Chapter 1
Capital Budgeting: process of planning and managing firms investment in longterm assets
Capital Structure: (financial structure) the mix of debt and equity maintained by a
firm
Short-term & long-term debt
Working Capital Management: planning an
Global Inc. FCCF Valuation
Global Inc. Is a fast growing technology company. Global has provided you with basic sales growth
information for the next four years in the table below. Last year sales were $100m; sales prices are
calculated using a 100% mark-