Q: Jason has credit card with the monthly interest rate of 1.3%. His statement from October 10 to Novem...
A: Beginning balance (B0) = $1132 Days from Oct 10 to Nov 10 = 32 Purchase on Oct 17 (P1) = $900 Days f...
Q: (WACC) and leverage
A: Cost of capital refers to the tool which is helpful in analyzing the cost of the capital projects an...
Q: Taylor and Charlie currently live in New Orleans. Taylor is currently making $60,000 per year, and C...
A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Cashflows means movement of cash it may be inflow or outflow. For the purposes of capital decision,...
Q: The market compensates investors for accepting which type(s) of risk? O None of the listed selection...
A: Risk refers to the level of uncertainty in returns that an investor expects while making investments...
Q: Explain the importance of a business report.
A: A business report is a report or a document which is essentially includes an array of data and analy...
Q: Describe three circumstances under which a person who has ceased to be a liquidator is released from...
A: Liquidation of assets can be voluntary or compulsory. Voluntary liquidation may be conducted to rais...
Q: Tn real estate question
A: An affiliate broker is a person who is licensed and works as an agent but not working in his or her ...
Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is compou...
A: The value of annuity can be calculated with the help of future value function
Q: The Board of Alaska Permanent Fund is reviewing a proposal to modify its reference portfolio, the ri...
A: "Hi, Thanks for the Question. Since you asked multiple sub parts question, we will answer first thre...
Q: Deposits of 10 are placed into a fund at the end of each year for 18 years with the first deposi occ...
A: The today value is the present value of annual series considering the interest rate and given period...
Q: Machine M Machine N $ 25,000 5 years $3,000 $25,000 4 years $4,000 $11,000 $3,500 Initial Cost Estim...
A: Net present value is calculated to determine the profitability of the project. In case of different ...
Q: You are consider we IRRS that excee RRECT? Assume t
A: Cost of capital refers to the tool which is helpful in analyzing the cost of the capital projects ...
Q: If you invest sh.100,000 at an interest rate of 15 percent, how much will you have at the end of eig...
A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question i...
Q: Flounder Company's net income for 2020 is $672,000, and 91.000 shares of common stock were issued an...
A: The diluted earning per share is used to measure a company's earning per share by assuming that all ...
Q: Question 7 What is the other name for fim-specific risk? O Systematic risk O Market risk O Micro-cap...
A: Risk includes the likelihood of losing some or all of the original investment. Business risks refer ...
Q: 6. Jake and Archie are looking for places to live. Jake decides to rent a house for $1400 Archie buy...
A: Interest is compounded semiannually, which means it is compounded once every six months. As a result...
Q: Identify methods for using and analysing working capital cycles ( max. 300 words )
A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...
Q: A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15. ...
A: Loan amount (P) = RM6500 Interest rate (r) = 18% Period from June 15 to September 15 (d) = 92 days
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...
A: Net present value is the sum of the present values of net of all future cash outflows and inflows di...
Q: ZDL Ltd's earnings per share next year is expected to be $1.50 and the earnings are expected to grow...
A: Present value of growth opportunity (PVGO) refers to the valuation method used by the company to det...
Q: Machine X Machine Y $ 6,000 7 years $12,000 13 years $4,000 $175 Initial Cost Estimated Life Salvage...
A: Solution : If we having two option for purchase of Machine & cost/ Expenses details was given of...
Q: 1. What are the annual net cash inflows that will be provided by the new dipping machine? 2. Compute...
A: Companies invest only in those machines and projects are profitable. To evaluate the profitability o...
Q: The Ewing Distribution Company is planning a $100 million expansion of its chain of discount service...
A: Given, Amount required for expansion is $100 million
Q: FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend l...
A: Since the dollar return is over all income and capital return in a given period. Dollar Return= (End...
Q: You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of...
A: Amount available to invest = $ 10000Return of X = 12.4%Return of Y = 10.1% Desired return from portf...
Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this accou...
A: Money that is invested today earns interest. This makes the future value of money more than present ...
Q: BHP Billiton, An Australian company’s stock, has a beta of 0.90. The expected return on the market i...
A: Value of firm is calculated by discounting all future expected free cash flows to present using WACC...
Q: Step 2 Calculation and Conclusion NAL =Cost of equipment - OCF*(PVIFA@5.12%,4 Years) =6300000 - 16...
A: Given: Operating cash flows = 1,683,800 Interest rate = 5.12% Years = 4
Q: ery month. What is the APR?
A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.
Q: the amount of the down payment?
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts fo...
Q: Taylor and Charlie currently live in New Orleans. Taylor is currently making $60,000 per year, and C...
A: Taylor Charlie Currently making $ 60,000.00 $ ...
Q: antha lives under an imputation tax system. Her income tax rate is 35%, which applies to all of her ...
A: The companies pay dividend out of the net income and this is paid to shareholders but shareholder ha...
Q: . What is the net present value $ of project A? 2. what is the profitability index for project A? ...
A: Net Present Value: It represents a measure of the profitability of a project or investment in dolla...
Q: what is a contract
A: A Contract A contract is an agreement between at least two parties or more that generates enforceab...
Q: A concrete pavement on a street would cost P2M and would last for 5 years. Minor maintenance cost is...
A:
Q: Westco Co. issued 15-year bonds a year ago at a coupon rate of 5.4 percent. The bonds make semiannua...
A: A Bond refers to an instrument that represents the loan being made by the investor to the company an...
Q: Q7-2. Will an investor earn more if interest is compounded semiannually or if the investment pays on...
A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...
Q: 4. A man paid 10 % as down payment of P200,000.00 for a house and lot and agreed to pay the balance ...
A: As per our guidelines we are supposed to answer only one question (if there are multiple questions a...
Q: You are required to: 1. Compute the cost of equity for this project 2. Compute the relevant cost of ...
A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all th...
Q: Find r: You have $2,000 in a money market account. If you make no deposits to or withdrawals from th...
A: Amount at the end of certain years is calculated as: = Principal (1 + r)^number of years Where 'r' i...
Q: complete the following using ordinary interest. (use days in a year table.) (don not round intermedi...
A: Principal (P) = $585 Interest rate (r) = 9% Period (d) = 193 days
Q: 17. You are considering two mutually exclusive, equally risky projects. Both have IRRS that exceed t...
A: Before investing in a new project or assets, profitability of the project is evaluated by using vari...
Q: An investment pays simple interest, and quadruples in 10 years. What is the interest rate?
A: Time Period = 10 Years
Q: Velma and Keota (V&K) is a partnership that owns a small company. It is considering two alternative ...
A: Given: Year First investment Second investment 0 -$6,328.24 -$11,072.11 1 $2,500 $3,800 2 $...
Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...
A: Loan amount (P) = $30,000 Interest rate = 12% Monthly interest rate (i) = 12%/12 = 1% Period = 10 Ye...
Q: Identify the following if it is an example of COMMERCIAL BANK, THRIFT BANK, GOVERNMENT BANK, PRIVATE...
A: Banks is referred as the financial institution, which helps in accepting the deposits from public as...
Q: 3. A mortgage balance of $18000 is renewed for the remaining amortization period of 3ycars at %4 com...
A: Mortgage balance (B) = $18000 n = 3 years = 36 months Interest rate = 4% compounded semiannually Mon...
Q: What is the YTM of this corporate bond - 20-year bond issued 5 years ago, interest rate of 4%, you j...
A: Par value = $1000 Coupon rate = 4% Coupon amount = 1000*0.04 = $40 Current price = $1062.50 Years to...
Q: down payment.
A: A home loan refers to the amount borrowed from financial institutions or banks for the purpose of bu...
Step by step
Solved in 3 steps
- Finance The time value of money refers to: a) Factors that show future value b) Factors that show past value c) Concept that a dollar received today is worth more than a dollar received in the future d) Concept that a dollar received today is worth less than a dollar received in the future explain in detailWhat happens to the present value of some fixed dollar amount to be received in the future as time to the money decrease? Why?Why does money have a time value? Does inflation have anything to do with making a ringgit today worth more than a ringgit tomorrow?
- Why is a dollar today worth less than a dollar sometime in the future?1) Which of the following statements about time value of money is not correct? Present value of money is today's value of money. Money grows with interest and time. Value of $1 today is greater than tomorrow. Value of $1 today is less than tomorrow. 2) The present value of a lump sum is: today's value of expected cost savings in the future. today's value of a total future cash flow. today's value of multiple equal payments in the future. today's value of a single payment in the future. 3) ACE Company acquired $500,000 to construct a new warehouse. To obtain this fund, the company issued 3,000 preferred stocks with $100 par value and 8% dividend rate for $300,000 and bonds for $100,000 with 5% interest, and borrowed the rest from its bank with 6% interest rate. The company requires a 3% buffer margin. What is the required rate of return on this project? 7% 12% 10% 13.9% 10.9%Which of the following is not a factor in explaining why the present value of a future dollar is less than one dollar?A. InterestB. Inflation C. Risk of failure to receive expected cash inflows D. Historic cost
- What are the equivalent annual worth and future worth of the cash flow given in Problem 20.15 ? Assume i = 8% .Is the value of money affected by time, and if it is, in which direction? O a. It is not affected O b. It depends O C. It is affected, the present value of money decreases the bigger the time horizon is O d. It is affected, the present value of money increases the bigger the time horizon isQuestion 12 Which of the following methods does not adjust for the time value of money: A internal rate of return B net present value C profitability index D payback period
- How can we calculate the present worth of actual dollars?2. Future value The principal of the time value of money is probably the single most important concept in financial management. One of the most frequently encountered applications involves the calculation of a future value. The process for converting present values into future values is called . This process requires knowledge of the values of three of four time-value-of-money variables. Which of the following is not one of these variables? The interest rate (I) that could be earned by deposited funds The trend between the present and future values of an investment The duration of the deposit (N) The present value (PV) of the amount deposited All other things being equal, the numerical difference between a present and a future value corresponds to the amount of interest earned during the deposit or investment period. Each line on the following graph corresponds to an interest rate: 0%, 9%, or 17%. Identify the interest rate that corresponds…Which of the following statements about the time value of money is true? a.) A dollar in hand today is worth less than a dollar to be received in the future. b. ) The value of a dollar invested at a positive interest rate decreases over time. c.) The further in the future you receive a dollar, the less it is worth today. d.)The higher the rate of interest, the more likely an investor will elect to consume at present and forgo invest his funds.