{"id":216491,"date":"2018-09-15T21:11:21","date_gmt":"2018-09-15T21:11:21","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/15\/fin-370-week-3-question-and-problem-sets-ch-9-q7-q8-ch-10-q3-q13-ch-11-q-1-q7\/"},"modified":"2018-10-24T09:05:21","modified_gmt":"2018-10-24T09:05:21","slug":"fin-370-week-3-question-and-problem-sets-ch-9-q7-q8-ch-10-q3-q13-ch-11-q-1-q7","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/fin-370-week-3-question-and-problem-sets-ch-9-q7-q8-ch-10-q3-q13-ch-11-q-1-q7\/","title":{"rendered":"FIN 370 Week 3 Question and Problem Sets  (Ch 9: Q7 &#038; Q8, Ch 10: Q3&#038; Q13, Ch 11: Q 1 &#038; Q7)"},"content":{"rendered":"<p>Prepare in Microsoft\u00ae Excel\u00ae or Word.\u00a0\t&#8220;\ufffd Ch. 9: Questions 7 &#038; 8 (Questions and Problems section)\t&#8220;\ufffd Ch. 10: Questions 3 &#038; 13 (Questions and Problems section)\t&#8220;\ufffd Ch. 11: Questions 1 &#038; 7 (Questions and Problems section)\tFormat your assignment consistent with APA guidelines if submitting in Microsoft\u00ae Word.\tClick the Assignment Files tab to submit your assignment.\t\u00a0\t&#8220;\ufffd Ch. 9: Questions 7 &#038; 8 (Questions and Problems section)\t7. \u00a0 Calculating IRR [LO5] A firm evaluates all of its projects by applying the IRR rule. If the required return is 14 percent, should the firm accept the following project?\t\u00a0\t\u00a0\t8. \u00a0 Calculating NPV [LO1] For the cash flows in the previous problem, suppose the firm uses the NPV decision rule. At a required return of 11 percent, should the firm accept this project? What if the required return is 24 percent?\t\u00a0\t\u00a0\t\u00a0\t&#8220;\ufffd Ch. 10: Questions 3 &#038; 13 (Questions and Problems section)\t\u00a0\t3. \u00a0 Calculating Projected Net Income [LO1] A proposed new investment has projected sales of $635,000. Variable costs are 44 percent of sales, and fixed costs are $193,000; depreciation is $54,000. Prepare a pro forma income statement assuming a tax rate of 35 percent. What is the projected net income?\t\u00a0\t\u00a0\t13. \u00a0 Project Evaluation [LO1] Dog Up! Franks is looking at a new sausage system with an installed cost of $540,000. This cost will be depreciated straight-line to zero over the project&#8217;s five-year life, at the end of which the sausage system can be scrapped for $80,000. The sausage system will save the firm $170,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project?\t\u00a0\t&#8220;\ufffd Ch. 11: Questions 1 &#038; 7 (Questions and Problems section)\t\u00a0\t1. \u00a0Calculating Costs and Break-Even [LO3] Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $9.64 per unit, and the variable labor cost is $8.63 per unit.\ta. What is the variable cost per unit?\tb. Suppose NSI incurs fixed costs of $915,000 during a year in which total production is 215,000 units. What are the total costs for the year?\tc. If the selling price is $39.99 per unit, does NSI break even on a cash basis? If depreciation is $465,000 per year, what is the accounting break-even point?\t\u00a0\t\u00a0\t7. \u00a0Calculating Break-Even [LO3] In each of the following cases, calculate the accounting break-even and the cash break-even points. Ignore any tax effects in calculating the cash break-even.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prepare in Microsoft\u00ae Excel\u00ae or Word.\u00a0 &#8220;\ufffd Ch. 9: Questions 7 &#038; 8 (Questions and Problems section) &#8220;\ufffd Ch. 10: Questions 3 &#038; 13 (Questions and Problems section) &#8220;\ufffd Ch. 11: Questions 1 &#038; 7 (Questions and Problems section) Format <a href=\"https:\/\/www.benedictsol.com\/blogs\/fin-370-week-3-question-and-problem-sets-ch-9-q7-q8-ch-10-q3-q13-ch-11-q-1-q7\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216491","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216491","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216491"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216491\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216491"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216491"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216491"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}