Carson electronics uses65 percent common stock and 35 percent debt to finance its operations. the aftertax cost of debt is 5.8 percent and the cost of equity is 16.1 percent. management is considering a project that will produce a cash inflow of $42,000 in the first year. the cash inflows will then grow at 3 percent per year forever. what is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project?

Carlos would like to start saving for his son’s college expenses. which type of savings account should carlos open? ida money market 529 plan basic savings account

Anew equipment has been proposed by engineers to increase the productivity of a certain manual welding operation. the investment cost is $25,000, and the equipment will have a market value of $5,000 at the end of a study period of five years. increased productivity attributable to the equipment will amount to $10,000 per year after operating costs have been subtracted from the revenue generated by the additional production. if marr is 10%, is investing in this equipment feasible? use annual worth method.

An electronics store is running a promotion where for every video game purchased, the customer receives a coupon upon checkout to purchase a second game at a 50% discount. the coupons expire in one year. the store normally recognized a gross profit margin of 40% of the selling price on video games. how would the store account for a purchase using the discount coupon?