Midterm Sample
How to calculate PV and FV for different kinds of cash flows? (apply different formulae)
Given PV or FV, can you calculate T or R?
Do you know the difference between APR and EAR?
Use monthly (daily, quarterly, annually) rate to handle monthly (daily, quarterly, annually) cash flows. Should we use APR or EAR to calculate these rates?
Q1 Peter wanted to purchase a house at price $4m. He planed to borrow 50% of the total amount through mortgage loans provided by HSBC. HSBC charged him 6% interest rate and he had to pay off the loans in 20 years. The first payment was made one month after the purchase. 10 years later, HSBC adjusted the loan rate into 12%.
What is the monthly payment during 10th year to 20th year? …show more content…
Q6
A proposed investment has a cost of $5000. It will have a life of 3 years. The cost will be depreciated straightline to a book salvage value of $2000, and will be worth $2500 at the end of the project’s economic life. Yearend sales will be $3200 per year and Yearend costs will be $200 per year. It requires an initial investment in net working capital of $500. The NWC will be recovered at the end of the project. The appropriate discount rate is 10%, and the corporate tax rate is 30%.
What is the financial breakeven (NPV breakeven) level of sales?
Q1
ans. 18,517
2m=x1/0.5%(11/(1+0.5%)^240, first calculate monthly payment according to the old interest rate 6%.
2mx1/0.5%(11/(1+0.5%)^120=x2/1%(11/(1+1%)^120/(1+0.5%)^120
Left handside: pv of the amount that owe to the bank at the end of 10th year.
Right handside: pv of the monthly payment according to the new interest rate 12%.
Q2
0
Q3
a. Choose A and B.
b. Incremental IRR=A’s IRR=15%>10%. Choose B.
c. D’s IRR=C’s IRR=21%>10%. Reject D.
Q4 Ans. 320, 90, 90, 90, 194
Q5 OCF=(10,00020,000)*(130%)+20,000=1,000 After tax salvage value=10,000(10,0000)*30%=7,000

Midterm Microecons
2384 Words  10 PagesMIDTERM REVIEW ECONOMICS 100A: Intermediate Microeconomics Instructor: Prof. Ryan Oprea Prepared by: Aadil Nakhoda BUDGET CONSTRAINT The budget constraint can be described as the following equation: m = p1 x1 + p2 x2 m = income p1 = price of good x1 p2 = price of good x2 Solving the budget constraint: m p1 m p2 = intersect on the x1 axis = intersect on the x2 axis p1 p2 Slope of the budget line =  Some key points to remember: The a¤ordable bundle of goods lie on or below the budget…

Midterm 1 Sample Multiple Choice Questions Essay
1260 Words  6 PagesCONCORDIA UNIVERSITY BUSINESS LAW AND ETHICS: Midterm exam Total Value: 25 Marks Date: September 30th, 2009 Instructor: Benito Aloe Time: 40 minutes Name: _____________________Signature: ___________________ID No:________ Course materials permitted: None. Concordia Academic Code of Conduct will be strictly enforced. unless otherwise indicated. Choose the most appropriate, accurate or correct answer. Answers on questionnaire will not be corrected. At the end of the…

Midterm Exam
1081 Words  5 PagesNAME: _______________________________ BSAD 180: Managerial Finance Midterm Exam I. Multiple Choices (40%) ( b) 1. The primary goal of financial management is to: a. maximize current dividends per share of the existing stock. b. maximize the current value per share of the existing stock. c. avoid financial distress. d. minimize operational costs and maximize firm efficiency. e. maintain steady growth in both sales and net earnings. ( c ) 2. The…

Essay on Ec Midterm
823 Words  4 PagesEC/315 Midterm Examination Directions: This test is openbook and open notes and covers the content from weeks 1 through week 4 of EC/315. The test will be typed and submitted in the Dropbox marked Midterm Exam. The midterm is due the last day of Week 4. PROBLEM 1 (Weight 40 points). NBC TV news, in a segment on the price of gasoline, reported last evening that the mean price nationwide is $1.50 per gallon for selfserve regular unleaded. A random sample of 35 stations in the Milwaukee…

Midterm Exam
1044 Words  5 PagesMidterm Instructions: Answer each question below in essay form, based on the principles and cases that we have reviewed so far this semester (i.e., Recognizing the Opportunity, Marshalling Resources). No. 1: Evaluate John Taylor and Marty Grayson’s effort to identify the opportunity. Are they the right people for this opportunity? Why or why not? John Taylor and Marty Grayson had both always had the interest of being entrepreneurs and when they met eachother is when their search for…

Psy midterm paper
1429 Words  6 PagesMidterm Essay ExaminationMidterm Essay Examination1.Describe the basic functioning of a neuron beginning with receiving signals from other neurons or sense organs and ending with the transmission of a signal to another neuron. Explain how a pattern of neuron firing is related to behavior. Neurons are information processing units in the central nervous system that receive and transmit information. It is made up of an axon, dendrites and a cell body. The nucleus and cytoplasm are contained in the…

Rsm260 Sample Midterm with Answer Essay
2328 Words  10 PagesUniversity of Toronto Faculty of Arts and Science and Rotman School of Management RSM 260H1S – Organizational Behaviour Duration: 110 minutes Aids allowed: one aid sheet (front side only of an 8.5”x11” piece of paper) Paper foreign language dictionary for international students Please answer all questions in this exam. Answers to the multiple choice questions need to be filled in on the scantron sheets (remember to use pencil to fill in the circles) and also circled on the exam…

Essay on Ms6000 Midterm
898 Words  4 PagesView Attempt 1 of 1 Title: Started: Submitted: Time spent: Midterm Exam March 14, 2011 1:11 PM March 14, 2011 3:40 PM 02:28:35 Total score adjusted by 0.0 Maximum possible score: 100 Total score: 99/100 = 99% Done 15 True/False Questions 1. MT T/F Q1 The breakeven point is the volume that equates total revenue with total cost and profit is zero. Student Response True Score: 2/2 Value 100% Correct Answer True 2. MT T/F Q2 Random variations component in a regression model are movements…

Acc 576 Midterm Questions Acc576 Midterm Questions
4194 Words  17 PagesACC 576 MIDTERM QUESTIONS ACC576 MIDTERM QUESTIONS Click Link for the Answer: Download Answer http://workbank247.com/q/acc576acc576midterm/16974 Download Answer http://workbank247.com/q/acc576acc576midterm/16974 Question 1 Which of the following is least likely to be considered a risk assessment procedure? Analytical procedures. Confirmation of ending accounts receivable. Inspection of documents. Observation of the performance of certain accounting procedures. Question…

Sample Midterm for Microeconomics Essay
2514 Words  11 PagesCONCORDIA UNIVERSITY Department of Economics ECON 201 Instructor: Ivan Tchinkov Exam duration: 60 min. SAMPLE MIDTERM EXAMINATION WITH ANSWERS Version 1 Instructions: 1. Write your answers on the IBM SHEET ONLY. 2. Use a PENCIL. 3. Put your NAME and ID on the IBM sheet. 4. Put the EXAM VERSION on the top right corner of the IBM sheet. Multiple Choice Questions (2 marks each). 1. Which of the following statements is correct for a society that emphasizes the production…
More about Midterm Sample

Midterm Microecons
2384 Words  10 Pages 
Midterm 1 Sample Multiple Choice Questions Essay
1260 Words  6 Pages 
Midterm Exam
1081 Words  5 Pages 
Essay on Ec Midterm
823 Words  4 Pages 
Midterm Exam
1044 Words  5 Pages 
Psy midterm paper
1429 Words  6 Pages 
Rsm260 Sample Midterm with Answer Essay
2328 Words  10 Pages 
Essay on Ms6000 Midterm
898 Words  4 Pages 
Acc 576 Midterm Questions Acc576 Midterm Questions
4194 Words  17 Pages 
Sample Midterm for Microeconomics Essay
2514 Words  11 Pages