MVP, Inc., has produced rodeo supplies for over 20 years. The company currently has a debt-equity ratio of 50 percent and the tax rate is 21 percent. The required return on the firm’s levered equity is 15 percent. The company is planning to expand its production capacity. The equipment to be purchased is expected to generate the following unlevered cash flows: Year Cash Flow
0 $18,300,000
1 5,730,000
2 9,530,000
3 8,830,000

The company has arranged a $9.39 million debt issue to partially finance the expansion. Under the loan, the company would pay interest of 8 percent at the end of each year on the outstanding balance at the beginning of the year. The company would also make year-end principal payments of $3,130,000 per year, completely retiring the issue by the end of the third year.

Required:
Calculate the APV of the project.

Resources that are valuable but not rare can be categorized asanswers: organizational weaknesses.distinctive competencies.organizational strengths.complementary resources and capabilities.

Both renewable and nonrenewable resources are used within our society. how do the uses of nonrenewable resources compare to the uses of renewable resources?

On december 31, 2016, the decarreau, andrew, and bui partnership had the following fiscal year-end balance sheet: cash $10,000accounts receivable $20,000inventory $25,000plant assets - net $30,000loan to decarreau $18,000total assets $103,000accounts payable $14,000loan from bui $15,000decarreaua, capital (20%) $32,000andrew, capital (10%) $23,000bui, capital (70%) $19,000total liab./equity $103,000the percentages shown are the residual profit and loss sharing ratios. the partners dissolved the partnership on january 1, 2017, and began the liquidation process. during july the following events occurred: * receivables of $18,000 were collected.* all inventory was sold for $15,000.*all available cash was distributed on january 31, except for$8,000 that was set aside for contingent expenses.the book value of the partnership equity (i.e., total equity of the partners) on december 31, 2016 isa. $58,000b. $71,000c. $66,000d. $81,000