(b) (5%) Could Percival do even better by investing equal amounts in the corporate bond portfolio and the index fund? The correlation between the bond portfolio and the index fund is \(+0.1\).

6. You are considering a plan to manufacture and market a brand-new sluffing machine. The most likely outcomes for the project are as follows: (1) Expected sales: 30,000 units per year (2) Unit price: $50 (3) Variable cost: $30 (4) Fixed cost: $300,000. A $1 million initial expenditure is needed for the ten-year project, which will be straight-line depreciated throughout the course of the project to zero. The required rate of return is 12%, while the firm's tax rate is 30%. You are aware, nevertheless, that some of these estimations might be inaccurate. Sales may drop by 30% during the course of the project, in which case the unit price would likely only be $40. The good news is that variable expenses would decrease proportionately to sales, and fixed expenditures may be as low as $200,000. (a) \((10\%)\) What is project NPV if all variables are as expected?

(b) \((5\%)\) What is NPV in the worst-case scenario?

7. At a variable cost of $32 per ounce, 10,000 ounces of silver may be extracted from a silver mine. Regardless of whether the mine is open or closed, the annual fixed expenses of ownership are $40,000. Silver may sell for $48 an ounce in half of the years, while it can only sell for $24 in the other years. Ignore taxes. (a) \((5\%)\) What is the average cash flow you will receive from the mine if it is always kept in operation and the silver always is sold in the year it is mined?

(b) \((10\%)\) Now suppose you can costlessly shut down the mine in years of low silver prices. What happens to the average cash flow from the mine?

8. (10%) Your firm has gained exclusive manufacturing rights for barkelgassers (BGs) in North America as a result of acquiring a significant patent. An immediate capital expenditure of $25 million will be required to construct production facilities for 200,000 BGs annually. The projected cost of production is $65 per BG. Until the patent expires in five years, the BG marketing manager is certain that all 200,000 units may be sold for $100 each (in real terms). After that, the marketing manager is clueless about the selling price. What is the NPV of the BG project? Assume the real cost of capital is 9%. To keep things simple, also make the following assumptions: The technology for making BGs will not change. Capital and production costs will stay the same in real terms. - Competitors know the technology and can enter as soon as the patent expires, that is, they can construct new plants in year 5 and start selling BGs in year 6. If your company invests immediately, full production begins after 12 months, that is, in year 1. There are no taxes. BG production facilities last 12 years. They have no salvage value at the end of their useful life.

115年 - 108 國立臺北大學_日間學士班轉學生招生考試試題_金融與合作經營學日間學士班3年級：財務管理#147577

115年 - 115 國立臺北大學_日間學士班轉學生招生考試試題_金融與合作經營學系日間學士班3年級：財務管理#147576

115年 - 115 國立臺北大學_碩士班一般入學考試試題_金融與合作經營學系：財務管理#146899

115年 - [無官方正解]115 國立嘉義大學_碩士班招生考試試題_財務金融學系：財務管理#143876

114年 - 114 國立臺北大學_日間學士班轉學生招生考試試題_金融與合作經營學日間學士班3年級：財務管理#147589

114年 - 114 國立臺北大學_碩士班一般入學考試試題_金融與合作經營學系：財務管理#147210

114年 - [無官方正解]114 國立嘉義大學_碩士班招生考試試題_財務金融學系：財務管理#144011

113年 - 113 國立臺北大學_碩士班一般入學考試試題_金融與合作經營學系：財務管理#146935

113年 - [無官方正解]113 國立嘉義大學_碩士班招生考試試題_財務金融學系：財務管理#144362

112年 - 112 國立臺北大學_日間學士班轉學生招生考試試題_金融與合作經營學日間學士班3年級：財務管理#147588