I am resubmitting 3 only at this time for completion. Nelson Manufacturing is considering a project which would require a $6.2 million investment…

I am resubmitting 3 only at this time for completion.1. Nelson Manufacturing is considering a project which would require a $6.2 million investment today (t = 0). The after-tax cash flows the factory generates will depend on whether the state imposes a new property tax. There is a 50-50 chance that the tax will pass. If the tax passes, the factory will produce after-tax cash flows of $1,000,000 at the end of each of the next 5 years. If the tax does not pass, the factory will produce after-tax cash flows of $2,000,000 for the next 5 years. The project has a WACC of 12%. If the factory is unsuccessful, the firm will have the option to abandon the project 1 year from now if the tax passes. If the factory project is abandoned, the firm will receive the expected $1 million cash flow at t = 1, and the property will be sold netting $6 million (after taxes are considered) at t = 1. Once the project is abandoned, the company would no longer receive any cash inflows from it. What is the project’s expected NPV if it can be abandoned?a. $486,524b. $509,831c. $529,776d. $537,098e. $541,2342. Morgan Entertainment has a levered beta of 1.20. The firm’s capital structure consists of 40% debt and 60% equity and it has a corporate tax rate of 40%. What is Morgan’s unlevered beta? a. 0.7534b. 0.7811c. 0.8043d. 0.8249e. 0.85713. Which of the following statements is CORRECT?a. In general, the more uncertainty there is about market conditions, the more attractive it may be to wait before making an investment.b. In general, the greater the strategic advantages of being the first competitor to enter a given market, the more attractive it may be to wait before making an investment.c. In general, the higher the discount rate, the more attractive it may be to wait before making an investment.d. It is not possible for abandonment options to decrease a project’s risk as measured by the project’s coefficient of variation.e. Very few projects actually have real options. Real options are theoretically interesting but of little practical importance.

Show more

Calculate Your Essay Price
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more