finance quiz

Finance 330

Spring, 2018 10:20 section

Quiz 5 capital budgeting

Answer the following questions. The quiz is worth 30 points. Show your calculations to receive full credit.

1. Calculate the NPV and IRR for Cool-ette. Show the calculations in the Quiz 5 data spreadsheet. The initial investment is $2,500 and the discount rate is 9.50 percent.

2. Calculate the NPV and IRR for Pawp Up. Show the calculations in the Quiz 5 data spreadsheet. The initial investment is $2,500 and the discount rate is 9.50 percent.

3. Calculate the NPV and IRR for Purifighters. Show the calculations in the Quiz 5 data spreadsheet. The initial investment is $2,500 and the discount rate is 9.50 percent.

4. You are a Wells Fargo banker. Analyze the first of the other two companies, not your own company. Would you make a loan to the company? Why or why not? Consider the results in questions 1, 2, and 3. Can the company repay the loan? What are the risk factors?

5. You are a Wells Fargo banker. Analyze the second of the other two companies, not your own company. Would you make a loan to the company? Why or why not? Consider the results in questions 1, 2, and 3. Can the company repay the loan? What are the risk factors?

The assignment is due by 6:00 pm on March 31, 2018. Late submissions will not be accepted without prior permission. The quiz is worth 30 points. Grammar, spelling, and punctuation will be graded along with the content of the assignment.

The responses are to be sent in a plain, simple, easy-to-read Word and Excel file. Include your name at the top of both documents. The business plans and projections are in the Content section on Blackboard.

There is to be no discussion of the assignment or cooperation with others, individually or jointly as in study groups. If such discussions or consultations occur, all involved students may get as low as ZERO for the assignment or an “F” for the course.

The assignments are to be submitted using SafeAssign in Blackboard.

Go to Quiz 5 submit in the Content section.

Click on View/Complete.

Upload your assignment in section 2.

Click on Global Reference Database in section 3.

Click on Submit.