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题目内容
（请给出正确答案）
Initial investment $2 million
Selling price (current price terms) $20 per unit
Expected selling price inflation 3% per year
Variable operating costs (current price terms) $8 per unit
Fixed operating costs (current price terms) $170,000 per year
Expected operating cost inflation 4% per year
The research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.
It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.
Required:
(a) Identify and explain the key stages in the capital investment decision-making process, and the role of
investment appraisal in this process. (7 marks)
(b) Calculate the following values for the investment proposal:
(i) net present value;
(ii) internal rate of return;
(iii) return on capital employed (accounting rate of return) based on average investment; and
(iv) discounted payback period. (13 marks)
(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
更多“PV Co is evaluating an investment proposal to manufacture Product W33, which has performed”相关的问题
第1题
prepares to make a bid to buy a rival unlisted company, NGN. Both companies are in the same business sector. Financial information on KFP Co and NGN is as follows:
NGN has a cost of equity of 12% per year and has maintained a dividend payout ratio of 45% for several years. The current earnings per share of the company is 80c per share and its earnings have grown at an average rate of 4·5% per year in recent years.
The ex div share price of KFP Co is $4·20 per share and it has an equity beta of 1·2. The 7% bonds of the company are trading on an ex interest basis at $94·74 per $100 bond. The price/earnings ratio of KFP Co is eight times.
The directors of KFP Co believe a cash offer for the shares of NGN would have the best chance of success. It has been suggested that a cash offer could be financed by debt.
Required:
(a) Calculate the weighted average cost of capital of KFP Co on a market value weighted basis. (10 marks)
(b) Calculate the total value of the target company, NGN, using the following valuation methods:
(i) Price/earnings ratio method, using the price/earnings ratio of KFP Co; and
(ii) Dividend growth model. (6 marks)
(c) Discuss the relationship between capital structure and weighted average cost of capital, and comment on
the suggestion that debt could be used to finance a cash offer for NGN. (9 marks)
第2题
【题目描述】
有一块布，第一次用去全长的30%，第二次用去全长的1/3，第一次用去的比第二次少2米，这块布全长多少米?( )A．60
B．80
C．100
D．120
| 【我提交的答案】： C |
| 【参考答案与解析】： 正确答案：A |
解析：由题意可知：2÷(1/3-3/10)=60。故选A。
【我的疑问】
为什么用2除以（3分之1-10分之3）
第3题
to other investment
appraisal methods such as payback, return on capital employed and internal rate of return. (9 marks)
第4题
indings. (5 marks)
第5题
nagers to
endeavour to meet the objectives of the company. Your answer should refer to:
(i) setting targets for financial performance;
(ii) participation in the budget-setting process. (12 marks)
第6题
nth period, and the value
of cost of sales for the period. (3 marks)
第7题
(b) Discuss how the operating statement you have produced can assist managers in:
(i) controlling variable costs;
(ii) controlling fixed production overhead costs. (8 marks)
第8题
o obtain additional
funding to finance an expansion of business operations. (8 marks)
第9题
ions for a company if
the stock market on which it is listed has been found to be semi-strong form. efficient. (9 marks)
第10题
rganisation such as a charity
or a hospital. (8 marks)
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