Vargo's has a target debt-to-value ratio of .6. The pretax cost of debt is 8.4 percent, the tax rate is 21 percent, and the unlevered cost of equity 13.2 percent. A project the firm is considering has a cash flow to the levered equityholders of $48,700 and an initial unborrowed cost of $216,000. What is the NPV of the project? A) $41,836 B) $48,208 C) $62,342 D) $61,003 E) $38,367

Answers

Answer 1

Answer:

Option(A) is the correct answer to the given question .

Explanation:

As mention in the given question following are the points

The cost of unlevered equity = R1 = 13.2%,

The cost pretex of the Debt = Rd1 = 8.4 % of the tax Rate is 21 % and  Ratio of the target Debt= 0.6

Target of the Debt-to the-Equity Ratio cab be determined

= DE1 = 0.6 /  ( 1- 0.6 )

= 3/2

The cost of the levered Equity

= Re1 = R1+ (1-Tax Rate) x DE1 x (R1-Rd1)

= 13.2 + (1-0.21) x (3/2) x (13.2-8.4)

= 18.888 %

So levered the Equity Cash Flow

= $ 48700 also the

Initial unborrowed cost = $ 216000  

Therefore NPV of the project

= (48700 / Re1) - 216000

= (48700 / 0.18888) - 216000

= $ 41835.663

=~ $ 41836

Answer 2

Final answer:

To calculate the NPV of the project, we need to discount the cash flows to the levered equityholders using the discounted cash flow (DCF) method. Using the given values, the NPV of the project is -$173,672.75.

Explanation:

To calculate the NPV of the project, we need to discount the cash flows to the levered equityholders using the discounted cash flow (DCF) method. Firstly, we need to calculate the levered cost of equity using the formula:

Levered Cost of Equity = Unlevered Cost of Equity × (1 + (1 - tax rate) × Debt to Value Ratio)

Using the given values: Unlevered Cost of Equity = 13.2%, Debt to Value Ratio = 0.6, and Tax Rate = 21%, the Levered Cost of Equity is:

Levered Cost of Equity = 13.2% × (1 + (1 - 0.21) × 0.6) = 15.33%

Next, we can calculate the discounted cash flow using the formula:

DCF = Cash Flow / (1 + Levered Cost of Equity)

Plugging in the values: Cash Flow = $48,700 and Levered Cost of Equity = 15.33%, the DCF is:

DCF = $48,700 / (1 + 0.1533) = $42,327.25

Now, to find the NPV, we subtract the initial unborrowed cost from the DCF:

NPV = DCF - Initial Unborrowed Cost = $42,327.25 - $216,000 = -$173,672.75

The NPV of the project is negative, so it would not be a profitable investment for Vargo's.


Related Questions

A scientific is likely to be used in a new area of science, but unlike other scientific ideas, it will not likely change over time.

Answers

Answer:

A scientific is likely to be used in a new area of science, but unlike other scientific ideas, it will not likely change over time.

False.

Explanation:

The reasons behind this answer are that in the first place, it is possible that scientists might adapt to a new area of science in case it is a new area of science in general and it is being developed. But if it is new for the scientist it is very unlikely that he or she is going to be used to it because research methods might change drastically from one science to the other. Also, sciences are always evolving and theories prove wrong many old theories or hypotheses. Therefore this statement is wrong, and false is the correct answer.

Answer:

law

Explanation:

i took the test on edg. rn lol

Papua New Guinea has more valuable natural resources (gold and copper) than any other island or nation in Oceania. *

True
False
Most of the smaller islands in the region export far more than they import. *

True
False

Many small, independent nations in Oceania do not depend on tourism as part of their economy. *

True
False

Many young people from Oceania move to other countries and send money called remittances to support family members back on the islands *

True
False

Environmental issues such as destruction of the Great Barrier Reef are of great concern to Australians. *

True
False

The islands of Oceania have abundant fish populations for commercial fishing. *

True
False

Answers

Answer:

Papua New Guinea has more valuable natural resources (gold and copper) than any other island or nation in Oceania- True

Most of the smaller islands in the region export far more than they import- True

Answer:

Papua New Guinea has more valuable natural resources (gold and copper) than any other island or nation in Oceania. *

False

Most of the smaller islands in the region export far more than they import.

False

Many small, independent nations in Oceania do not depend on tourism as part of their economy. *

False

Many young people from Oceania move to other countries and send money called remittances to support family members back on the islands *

True

Environmental issues such as destruction of the Great Barrier Reef are of great concern to Australians. *

True

The islands of Oceania have abundant fish populations for commercial fishing. *

True

Explanation:

What was the Teapot Dome scandal. Who was involved?

Answers

The Teapot Dome Scandal was an American political scandal of the early 1920s. It involved the secret leasing of federal oil reserves at Elk Hills, California, and Teapot Dome, Wyoming, by Albert Bacon Fall—U.S. Pres. Warren G. Harding's secretary of the interior—to oil tycoons Edward L.

Answer:

The Teapot Dome Scandal was an American political scandal of the early 1920s. It involved the secret leasing of federal oil reserves at Elk Hills, California, and Teapot Dome, Wyoming, by Albert Bacon Fall—U.S. Pres. Warren G. Harding's secretary of the interior—to oil tycoons Edward L.

Explanation:

where did the majority of the battles occur during World War I?

Answers

Final answer:

The majority of World War I battles took place on the Western and Eastern Fronts in Europe, with notable battles like the Battle of the Somme and the Battle of Verdun. There were also campaigns in the Middle East, Africa, and Asia.

Explanation:

The majority of the battles during World War I occurred on the Western Front and the Eastern Front. In the West, the front stretched from the English Channel, through northern France, to the Alps. It was here that some of the most infamous and deadly battles, such as the Battle of the Somme and the Battle of Verdun, took place. The Eastern Front spanned across Poland, Galicia, and into Russia. Apart from these fronts, significant campaigns unfolded in the Middle East, Africa, and Asia, although to a lesser extent.

The First Battle of the Marne, which halted the German advance towards Paris, and the Battle of Verdun, known for its high casualty rates and ten months of fighting, are particularly notable. Additional countries from the British Empire and other parts of the world also contributed large numbers of troops to the conflict, highlighting the global nature of the war.

Why did the US fight the Korean War?"

Answers

south korea is an ally of US,but north koerea wanna take control of south korea because it's main aim is to take control of da korean peninsula,so as usual us interfers in other contry's matter only to make it worse.....

DIRECTIONS Match the terms in the first column with their correct
definitions from the second column by placing the letter of the
correct definition in the space provided before each term.
1. American System
2. Cumberland Road
3. Erie Canal
4. sectionalism
5. Henry Clay
6. John Quincy Adams
7. Missouri Compromise
a. Henry Clay's plan to improve the
U.S. economy
b. U.S. representative who was a strong
supporter of national unity
allowed goods and people to move
between the Great Lakes region and
New York City
d. settled the conflict surrounding
Missouri entering the Union
e. became president in 1824
f. disagreements between different
regions
g. first road built by the federal
government

Answers

1. American System - a. Henry Clay's plan to improve the U.S. economy. 2. Cumberland Road - g. first road built by the federal government. 3. Erie Canal - c. allowed goods and people to move between the Great Lakes region and New York City. 4. sectionalism - f. disagreements between different regions. 5. Henry Clay - b. U.S. representative who was a strong supporter of national unity. 6. John Quincy Adams - e. became president in 1824. 7. Missouri Compromise - d. settled the conflict surrounding Missouri entering the Union.

a. American System: Henry Clay's economic plan aimed to strengthen the U.S. through tariffs, a national bank, and internal improvements.g. Cumberland Road: The first federally funded road, connecting the Potomac and Ohio Rivers, facilitating westward expansion and trade.c. Erie Canal: A vital waterway connecting the Great Lakes to the Atlantic Ocean via the Hudson River, boosting trade and settlement in the Northeast.f. Sectionalism: Regional disagreements and loyalties that emerged in the U.S., particularly between the North, South, and West, leading to tensions and conflicts.b. Henry Clay: A prominent statesman and U.S. representative, known for the American System and his efforts to preserve national unity during times of sectional discord.e. John Quincy Adams: The sixth U.S. president (1824-1828), a diplomat, and strong advocate for national improvement projects, including the Cumberland Road and the Erie Canal.d. Missouri Compromise: A legislative solution in 1820 that balanced slave and free states, maintaining the delicate equilibrium in Congress and postponing sectional conflicts for a time.

Unacceptable behaviours before and during an examination is known
as ......?

Answers

Answer:

Cheating and talking and passing papers

More than 40% of India's population lives on less than $1.29 a day.What kind of standard of living do these people most likely have

A They have a very high standard of living, similar to that
B. They have a high standard of living, with access to elect
C. They have an average standard of living compared to oth
D. They have one of the lowest standards of living in the wo​

Answers

Answer: They have one of the lowest standards of living in the world.

Explanation: The average income per day is at least 200 dollars, this is very low comapred to other countries.

Ashley tells you that her church is racially mixed because even though 85 percent of the attendees are white, individuals from all racial backgrounds are welcome and encouraged to attend. Based on the definition for a racially mixed congregation found in the text, you will tell Ashley that:

Answers

Answer: She's wrong

Explanation:

What implies or describes a racial organization is the segregation of different race from each other even evenly or close percentages. In these cases Ashely has a particular race with a very high race than the others which is likely there is no racial mixed congregation due to the fraction is too high to classify such. A racial mixed congregation will have the ratio almost evenly spread.

Which is a characteristic of a topic?
A. It can be expressed in 1-3 words.
B. It can be expressed in 1-2 sentences
C. It is the author's message.
D. It expresses something that is true for everyone​

Answers

Answer:

b is the correct answer

Explanation:

and i learned this in school and i have been doing this for good hope it helps

pls help me!!!!!! what dispute occured between shia Muslims and Sunni muslims after the death of Muhammad?​

Answers

Answer:

succession

Explanation:

A dispute over succession to Islamic prophet Muhammad as a caliph of the Islamic community spread across various parts of the world, which led to the Battle of Jamal and Battle of Siffin.

Succession had occurred

Describe the wordplay that occurs in this passage. In
what ways is the author using the word expectations?

Answers

Answer:

The author is playing with the meaning of "Expectations" as a place name. One meaning of the word is that no one ever drives farther than the place of Expectations. The other meaning is that no one ever moves past feeling an expectation to actually making something happen.

Explanation:

Verses then the declaration of houses then the greater inclination then the touchstone then critical instances then the valley of decision then italian villas and their gardens then the house of mirth then italian backgrounds then the fruit of the tree then madame de treymes then a motor flight through france then artemis to actaeon and other verse then _____ then frome then the reef then the custom of the country then fighting france, from dunkerque to belfort then the book of the homeless then xingu and other stories then________.

Answers

Answer:

1. Tales of Men and Ghost (1910)

2. Summer (1917)

Explanation:

Edith Jones Wharton was an american writer who lived between 1862 to 1937, she authored various books (novels, novellas, short stories etc.) in her life time, in which they are the following:

Verses (1878). The Greater Inclination (1897). Crucial Instances (1901). The Joy of Living, by H. Suderman (translated by Wharton 1902). Sanctuary (1903). The Descent of Man, and Other Stories (1904). Italian Villas, and Their Gardens (1904). Italian Backgrounds (1905). Fruit of the Tree (1907). Madame de Treyms (1907). The Hermit and the Wild Woman, and Other Stories (1908). A Motor Flight through France (1908). Artemis to Actaeon, and other Verses (1909). Tales of Men and Ghosts (1910). The Reef (1912). Fighting France, from Dunkerque to Belfort (1915). The Book of the Homeless (1916). Xingu, and Other Stories (1916). Summer (1917). The Marne (1918). French Ways and Their Meaning (1919). In Morocco (1920). The Glimpses of the Moon (1922). A Son at the Front (1923). Old New York (1924). The Mother's Recompense (1925). The Writing of Fiction (1925). Here and Beyond (1926). Twelve Poems (1926). Twilight Sleep (1927). The Children (1928). Hudson River Bracketed (1929). Certain People (1930). The Gods Arrive (1932). Human Nature (1933). A Backward Glance (1934). The World Over (1936). Ghosts (1937). The Buccaneers (1938). Eternal Passion in English Poetry (1939). The Collected Short Stories of Edith Wharton (2 vols., edited by R. W. B. Lewis, 1968).

Final answer:

The Final answer to the sequence question is that the missing titles are 'Summer' before 'Ethan Frome' and 'The Marne' after 'Xingu and Other Stories'. These works were written by Edith Wharton, a prominent novelist of the early 20th century. Both titles are important additions to Wharton's literary chronology. 'Summer' was published in 1917 and is known for its exploration of a young woman's awakening, while 'The Marne' came out in 1918 and represents Wharton's response to World War I.

In the

Explanation:

, it is important to note that listing the works of an author in chronological order helps students understand the evolution of the author's themes and style over time. For Edith Wharton, whose works often delved into issues of class, gender, and society, tracing the publication order reveals how her perspectives and narrative techniques developed. 'Summer' and 'The Marne' are particularly significant as they both tackle the themes of personal growth and societal impact of war, respectively, thereby marking shifts in Wharton's writing that reflect the tumultuous times during which they were written.

Why did Northern support for Reconstruction fade? Check all of the boxes that apply. Northerners were tired of spending resources on the South. Northerners became more attracted to the Democratic Party. Northerners did not support civil rights for African Americans. Northerners believed US troops should be removed. Northerners believed that the South would never change.

Answers

Answer:

A, D, E

Explanation:

got it right on 3dg3nuity

Answer:

A) Northerners were tired of spending resources on the South.

D) Northerners believed US troops should be removed.

E) Northerners believed that the South would never change.

Srry if u can’t see it:(((

Answers

Answer:

C

Explanation:

Jackie is doing a study on the number of hours spent watching television and how this affects family cohesion. She decides to mail a questionnaire to randomly selected households in her state. This is an example of a ______ survey.

Answers

Answer:

self-administered        

Explanation:

Self-administered survey: In research methods, the term "self-administered survey" is described as one of the different survey methods that are being designed in a structured form and consists of a specific series of different "open-ended" and "closed-ended" questions. However, it is being denoted as "self-administered" because the respondents or the participants of the survey fill the given questionnaire themselves, in the absence of any interviewer.

In the question above, the given statement is an example of a self-administered survey.

The maps above show New Zealand's place in the world from two different perspectives. Which statement explains why people in New Zealand might prefer Map A over Map B?

A.

Map B shows New Zealand with easy access to North and South America.

B.

Map A shows New Zealand safe and isolated from the rest of the world.

C.

Map B is an example of a world map with Asia as the most important continent.

D.

New Zealand appears centrally located in Map A and therefore more accessible.

Answers

The likely preferred answer might be B. Map A shows New Zealand safe and isolated from the rest of the world.

In this scenario, the likely preferred answer might be B. Map A shows New Zealand safe and isolated from the rest of the world.

New Zealand, being an island nation in the southwestern Pacific Ocean, might appreciate Map A because it portrays the country as secluded and distanced from potential global conflicts or disturbances. This depiction of safety and isolation could be more appealing to some residents or policymakers in New Zealand.

How can literature help us remember and honor the victims of the Holocaust?

Answers

Answer:

I would say it serves as a voice for their oppression, and artistically describes the horrid acts committed during the Holocaust. It also tells some of the most emotional stories we should know about it.

Answer:

This literature continues that stage of the scope and sequence by helping students think deeply about the impact of memory and history on the present day.

Explanation:

In particular, literature engages students in the processes of both responding to and creating memorials to the Holocaust. By doing so, they are forced to grapple with key questions about why history is important and how our memory of history is shaped and influenced.Then they will design, plan, and create their own memorial to represent an idea, event, or person they believe is important to remember from the history of the Holocaust.

For further details refer link:

https://brainly.in/question/11062758?referrer=searchResults

Which of the following is the most
important power of the judicial branch?
A) Declaring laws and executive actions
unconstitutional
B) Issuing warrants for federal criminal cases​

Answers

The answer is A). Declaring laws and executive actions unconstitutional

Monarchy is rule by
one person
the majority
popular vote

Answers

the answer is one person

which factor has remained constant in relation to the operation of the federal government?

A.the existence of political opposition parties

B. The predominance of the Republican Party

C. The tendency of the Executive branch to seek more power

D. The idea that civil liberties have always been respected

Answers

Answer:

Option A        

Explanation:

In democracy, the opponent includes one or even more national or regional parties or other formed organisations that are objected in the political power of a area, province, state, nation or even other political institution, primarily politically, to the administration, faction, or community.Opposition party works as one the major pillars for democracies.  

    Federal government came into existence after the concept of democracy and democracy can only be achieved when people have the alternative to choose their representative.

Answer:

A

Explanation:

Which two words would BEST replace "setback" and "decisively" in the selection above?

(A) obstacle; mysteriously

(B) impediment; clearly

(C) catalyst; courageously

(D) revitalization; horribly

Answers

Answer:

B

Explanation:

Dictionary definitions impediment: "hindrance or obstruction in doing something" and  "without doubt; obviously

Who is allowed to vote in the United States

Answers

Final answer:

In the U.S., registered voters must be U.S. citizens, 18 years old or older, and residents of the state in which they are voting. Restrictions apply for felons, varying by state, with some allowing restoration of voting rights after sentence completion. States also have different rules for party registration and primary elections.

Explanation:

In the United States, the right to vote is extended to U.S. citizens who meet certain qualifications. Persons wishing to vote must be at least 18 years of age by the time of the election and must be a resident of the state in which they register to vote. Registration to vote must typically occur at least 30 days before Election Day. However, there are additional stipulations that can affect a person's eligibility to vote; for example, most states impose restrictions on voting rights for felons. Kentucky is one such state that requires a pardon from the governor for felons to regain their voting rights, whereas states like Vermont and Maine do not disenfranchise citizens based on incarceration, except for crimes related to election fraud.

It is worth noting that restrictions on voting can vary significantly from state to state, including differences in policies for party registration and primary elections. Additionally, convictions for serious crimes, like felonies, can lead to temporary or permanent disenfranchisement, with specifics depending on state law. However, movements and legal changes, such as those seen in Florida, show a trend towards restoring voting rights to individuals who have completed their sentences and paid restitution.

Based on the laws of ____. When to much of a product is produced, the price drops. A. Nature B. Supply and demand C. Most states in the U.S. D.Factories and farms

Answers

D. Factories and farms

Answer:

it is B, Supply and demand

The earliest people in West Africa were the Kenyans true or false

Answers

Answer: It would be false! The earliest people in West Africa were the Soninke.

Explanation:

Supreme Court Justices are __________. elected by voters chosen by the governor named by the legislature

Answers

Answer:

elected by voters

Explanation:

I just had this one hope it helps

Was the War of 1812 a justified war? Back it up with 2 reasons please :)

Answers

Answer:

The War of 1812, which lasted from June 18, 1812 to February 18, 1815, was a military conflict between the United States, Great Britain, and Great Britain's American Indian allies on the North American continent. ... Unfortunately, Americans were caught in the crossfire, despite US neutrality in the war.

Explanation:

an event became know as the Boston massacre occurred on March 5,1770. On this day , British soldiers fired on and killed




A. other British soldiers

B. unarmed colonists

C. colonial minutemen

D. revolutionary politicians​

Answers

The correct answer is B. unarmed colonists.

The reason for this is because the Boston massacre was an event where A mob of colonials were rallying. One of the American colonists got into a brawl with a British soldier so he shot several unarmed colonist.

It couldn't have been other British soldiers because British soldiers didn't pointlessly shoot each other.

The event also didn't involve a conflict between the British and the colonial minutemen.

Also, revolutionary politicians wouldn't have been there because they usually laid back from conflict.

When does the pursuit of profit benefit a market? 1) as long as investors engage in profit sharing 2) as long as self-interest is limited by regulation 3) as long as the profit is reinvested in social goods 4) as long as competition is a component of the market

Answers

Answer:

The time when the pursuit of profit benefits a market is:

2) as long as self-interest is limited by regulation

Explanation:

The reason behind this answer is: the pursuit of profit is the action of trading an item that increases in value at a sustained rate of demand. Very often it is overpriced and the fee paid for it is no longer rational. So, to benefit the market it has to follow this statement: 2) as long as self-interest is limited by regulation. The reason behind is because the market can be manipulated by a party and engulf buyers to it to sell them the product at a higher price after a bubble has been created on it. Like the tulip bubble.

People who believe that their vote can make a difference can be said to have a strong sense of

Answers

Answer:MEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEE

Explanation:

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