# Financial Management assessment

*label*Business Finance

*timer*Asked: Oct 18th, 2018

*account_balance_wallet*$15

### Question Description

##### Instructions

To complete the unit assignment, click here to download the worksheet, and type your answers in the fields provided. Save the document using your last name and student ID. Once complete, upload your assignment to Blackboard for grading.

**Textbook:** Titman, S., Keown, A. J., & Martin, J. D. (2014). *Financial management: Principles and applications* (12th ed.). Upper Saddle River, NJ: Pearson.

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**Tags:**"homework" "Financial" Titman S Keown A J Martin J D 2014 Financial management Principles and applications 12th ed Upper Saddle River NJ Pearson

## Tutor Answer

please find the attached file. i look forward to working with you again. good bye

BBA 3301 Unit VIIAssignment

Instructions: Enter all answers directly in this worksheet. When finished select Save As, and save this

document using your last name and student ID as the file name. Upload the data sheet to Blackboard as

a .doc,.docx or .rtf file when you are finished.

Question 1: (10 points). (Net present value calculation) Dowling Sportswear is considering building a new

factory to produce aluminum baseball bats. This project would require an initial cash outlay of $4,000,000

and would generate annual net cash inflows of $900,000 per year for 7 years. Calculate the project's NPV

using a discount rate of 5 percent. (Round to the nearest dollar.)

NPV=$900,000 X {(1-(1+0.05)-7)/0.05}-$4,000,000

a. If the discount rate is 5 percent, then the project's NPV is: $ 1,150,225

Question 2: (30 points).(Net present value calculation) Big Steve's, makers of swizzle sticks, is

considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of

$90,000 and will generate net cash inflows of $19,000 per year f...

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