1. A firm is considering replacing the existing industrial air conditioning unit. They will pick one of two units. The first, the AC360, costs $26,825.00 to install, $5,155.00 to operate per year for 7 years at which time it will
Corporate Finance
1.Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient
Discussion – Options
[ad_1] This week’s reading gives an overview of financial options and describes payoffs to various options strategies. The factors that affect option prices are also discussed. Finally, the equity and debt of the firm are modeled as options. What part
Corporate Finance
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will
Corporate Finance
Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube Goldberg Machines. This new equipment, the RGM-7000, will allow Caspian Sea Drinks to expand production. It will cost $12.00 million fully installed and will
FINANCE SIMULATION: M&A IN WINE COUNTRY
[ad_1] Background: To solve quantitative and qualitative research in business finance. In this multi-player simulation, students each play the role of a CEO at 1 of 3 publicly traded wine producers: Bel Vino, Starshine, or International Beverage. Bel Vino and Starshine
FIN501 – Options
[ad_1] This week’s reading gives an overview of financial options and describes payoffs to various options strategies. The factors that affect option prices are also discussed. Finally, the equity and debt of the firm are modeled as options. What part
Corporate Finance
1. Caspian Sea Drinks is considering buying the J-Mix 2000. It will allow them to make and sell more product. The machine cost $1.67 million and create incremental cash flows of $831,367.00 each year for the next five years. The
Corporate Finance
1. The risk-free rate is 1.53% and the market risk premium is 6.75%. A stock with a β of 0.88 just paid a dividend of $1.28. The dividend is expected to grow at 22.80% for three years and then grow
Corporate Finance
1. The risk-free rate is 1.53% and the market risk premium is 6.75%. A stock with a β of 0.88 just paid a dividend of $1.28. The dividend is expected to grow at 22.80% for three years and then grow