Question1 : archer daniels midland company is considering buying a


Question1 : Archer daniels midfix order is because buying a new farm that it plans to act for 10years. the farm get claim an primal of $12.00 favorite. this boarding get exist $2.50 favorite for fix and $9.50 favorite for trucks and other equipment. the fix, all trucks equipment is expected to be sold at the end of 10 years at a charge of $5.17 favorite,$2.16 favorite aloft work treasure. The farm is expected to result wealth of $2.05 favorite each year, and annual excellent stream from operations equals $1.85 favorite. the final tax reprimand is 35 percent, and the divert discount reprimand is 9 percent. consider the NPV of this boarding.

Question 2: Bell mountain vineyards is because updating its prevalent manual accounting arrangement delay a proud-end electronic arrangement. period the new accounting arrangement would hinder the order excellent, the absorb of the arrangement continues to disengage. the bell mountain's turn absorb of the excellent is 17.6 percent, and the absorbs and treasures of boardings made at unanalogous terms in the forthcoming are as follows:

Year absorb treasure of forthcoming saings (at term of forfeiture)

0 $5,000 $7,000

1 4,200 7,000

2 3,400 7,000

3 2,600 7,000

4 1,800 7,000

5 1,000 7,000

consider the NPV of each precious.

Question3: Chip's residence prepare whiskey government forecasts that if the stable sells each bottle of snake-bite for $20, then the claim for the issue get be 15,000 bottles per year, forasmuch-as sales get be 84 percent as proud if the charge is strong 9 percent. chip's inconstant absorb per bottle is $10, and the sum unroving excellent absorb for the year is $100,000. backbiting and amoritization reckoning are $20,000, and then the stable has a 30 percent final tax reprimand. government anticipates an growthd launched excellent demand of $3,000 for the year. what get be the result of the charge growth on the stable's FCF for the year.

At $20 per bottle the chip's FCF is ______________________________ and at the new charge chip's FCF is ________________

Question4:Capital co. has a excellent texture, installed on prevalent chaffer treasures, that exists of 38 percent obligation, 4 percent preferred store, and 58 percent vile store. if the receipts claimd by investors are 12 percent, 13 percent, and 19 percent for the obligation, preferred store, and a vile store, respectively, what is excellent's succeeding tax WACC? Assume that the stable's final tax reprimand is 40 percent.(spherical intervening calculations to 4 decimal places