Bill Padley expects to invest $15,000 for 5 years, after which he wants to receive $22,039.50. What rate of interest must Padley earn? (PV of $1. FV of $1. PVA of $1, and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Present Value Table Factor Interest Rate %

3. A toy manufacturer makes stuffed kittens and puppies which have relatively lifelike motions. There are three different mechanisms that can be installed in these "pets." These toys will sell for the same price regardless of the mechanism installed, but each mechanism has its own variable cost and setup cost. Profit, therefore, is dependent upon the choice of mechanism and upon the level of demand. The manufacturer has in hand a forecast of demand that suggests a 0.2 probability of light demand, a 0.45 probability of moderate demand, and a probability of 0.35 of heavy demand. Payoffs for each mechanism-demand combination appear in the table below. Wind-up action Pneumatic action Electronic action Demand Light Moderate $250,000 $90,000 -$100,000 400,000 440,000 400,000 Heavy 650,000 740,000 780,000 Construct the appropriate decision tree to analyze this problem. Use standard symbols for the tree. Analyze the tree to select the optimal decision for the manufacturer.

Scenario analysis allows a firm to ask what - if type questions in capital budgeting. Question 22Select one: True False

d) Cost of the fifth unit = ?  (round your response to the nearaest whole number. (How do I find the calculation for this question?)

1. Construct a risk analysis that examines the various forms of risk (technical, commercial, financial etc) related to the creation of this office building   2.Explain how the analysis would change if office space were in high demand

b. Based on this extrapolation, when would Amazon be predicted to equal Walmart in revenue?c. Why has Amazon been growing faster than Walmart? Is the slow growth of Walmart related to the rapid growth of Amazon?

Capital Budgeting with Taxes (Non-MACRS Depreciation); Sensitivity Analysis GravinaCompany is planning to spend $6,000 for a machine that it will depreciate on a straight-line basisover 10 years with no salvage value. The machine will generate additional cash revenues of $1,200 ayear. Gravina will incur no additional costs except for depreciation. Its income tax rate is 35%. Thepresent value annuity factor for 15%, 10 years (from Appendix C, Table 2) is 5.019.Required1. What is the payback period of the proposed investment (in years, and rounded to 1 decimal place) underthe assumption that the cash inflows occur evenly throughout the year?2. What is the accounting (book) rate of return (ARR) based on the initial investment outlay? Round youranswer to 1 decimal place (e.g., 13.571% = 13.6%).

1. Decision Rules. A company is choosing a motorized mechanism for a new toy, a dancing ballerina (TippiToes) that is currently under development. Demand is uncertain. but the company is confident that demand will be: Light (25,000 units), Moderate (100,000 units) or Heavy (150,000) units. The payoff table for each mechanism (in $) is given below. Action: Choice of Mechanism Event Gears and Levers Spring Weights and Pulleys Pneumatic Light 25,000 -10,000 -125,000 -300,000 Moderate 400,000 440,000 400,000 300,000 Heavy 650,000 740,000 750,000 700,000 Questions: (1) Apply Maximax, Maximin, Minimax Regret, and EMV rules (assuming that the probability of Light demand is 0.1, Moderate demand is 0.7, and Heavy demand is 0.2) to decide what mechanism should the company choose? (2) What is the expected value of perfect information? (3) Draw a decision tree to solve this problem.

Questions 2 – Capital budgeting and NPV Responsible Testing Company may buy DNA‐testing equipment A costing $60,000 now (at year 0). This  equipment  is  expected  to  reduce  labor  costs  of  the  clinical  staff,  net  of  all  staff  training expenditures, by $20,000 annually in the subsequent years following the investment. Equipment A has a useful life of 8 years and can be straight‐line‐depreciated over its years of operations. No salvage value is expected at the end. The corporate tax rate (combined federal and state) is 40% and the company’s required rate‐of‐return is 15%.   (2a) Describe the company’s “investment project”. Calculate the relevant cash flows and use the NPV method to determine the attractiveness of this project. (2b) Suppose that in the second year (year 2) a more efficient and effective DNA‐testing equipment B is expected to enter the market. The new equipment costs $90,000, will have an effective operating life of 6 years, can be straight‐line‐depreciated but…

Campers Ltd was established in 2010 and have had impressive returns for the years precedingCOVID-19. After going into the reserves to keep the business afloat, they have had to developnew strategies. The board has approved an initiative that requires the company to take a R50million.(Information extracted from their Balance Sheet)Total Assets – R50 millionTotal Liabilities – R 40 million(Information extracted from the Income Statement)Bank account – R25 millionRental – R5 million (per annum)Utilities (fibre, telephone, water and electricity, security) – R1 millionSalaries -R15 million    Q.2.2 Assume for this question only that Mrs Funeka, the chairperson of the board, takes it upon herself to acquire a loan on behalf of the company without the necessary resolution. The contract is entered into between Mrs Funeka on behalf of the company and Kekana Investments. Is the contract valid? Can the company be bound by the agreement? In your answer discuss the following:• The impact of the…