(1+r)" or P = F(1+i) -n a) Find the present value of P8,000 due in four years at semi-annually b) P22,500 is due in 6 years at 12% compounded annua the present value c) Find the present value of each of the following: 3. Present Value: P = aa. P28,300, 8% every 6 months for 5 years bb. P27,500, 12% monthly. Terms, 3 years and cc P83 900 10% quarterly Terms 6 years and
Q: Wonder Plc is considering two investment projects in another city and the estimated cash flows are…
A: Capital Budgeting: Using capital budgeting, investors determine the value of new investment…
Q: apley Dental Supply Company has the following data: Net income: $240 Sales: $10,000 Total assets:…
A: Return on Equity is the ratio that shows the profitability of the business by the use of owner's…
Q: he small happy Kingdom of Pollyanna does not trade with the rest of the world, but uses U.S dollars…
A: Tariff is a kind of levy or a tax. Here the import tariff is levied on the imports of tofu and the…
Q: As a result of an accident due to faulty equipment at a shopping mall, Leslie is permanently…
A: The payments in an insurance contract are made through various methods to the insurer, some are…
Q: 1. The Viking Company is preparing budgets for the second quarter ending June 30. Last year's…
A: As per the Honor code of Bartleby we are bound to given the answer of first three sub part only,…
Q: 1) Based on the data in the table below in which the average yield, the standard deviation of…
A: concept. 1. systematic risk. Systematic risk is also called the undiversifiable risk, market risk,…
Q: he table below shows a book balance sheet for the Wishing Well Motel chain. The company’s long-term…
A: Weighted Average Cost of Capital (WACC) of a company is the average cost after considering the tax…
Q: If a certain stock sells for 626.659 dollars on the NYSE, how much will it sell for, in dollars, on…
A: 1) If a Stock trades at more than one stock exchange, then the price at all the stock exchanges will…
Q: Company Miami just paid annual dividend of $25 today. The dividend is expected to grow at 8% for the…
A: Solution: Price of a share of company Miami Stock: $675
Q: reservation point?
A: Reservation point is the minimum point which the party will accept a agreement. It is always denoted…
Q: A Zambian company has a bond outstanding that sells for 87 percent of its K100,000 par value. The…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Consider the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0…
A: Required return is 13% To Find: Payback period NPV
Q: 1. Mr. Reyes borrows P600,000 at 12% compounded annually agreeing to repay the loan in 15 equal…
A: Annual Payment to be made = P * r * [(1+ r)n/({1 + r}n -1)Where, P = Principal borrowed = 600,000 r…
Q: Adrian is contemplating purchasing for £60,000 a machine which he will use to produce 10,000 disks…
A: Given
Q: If you were in early 2021with the once-in-a-generation low interest rate environment, and the rates…
A: There are three possible options to mortgage. We have to choose the one that is best suited to us.
Q: Lassiter Industries has annual sales of $220,000 with 12,000 shares of stock outstanding. The firm…
A: Price earning Ratio - In simple words we can say how much money investor pay for the stock to earn…
Q: next 12 years. If the profits wil compounded continuously, what is the 12-year present value of this…
A: Information Provided: Year 0 Profit = $393,000 Decline in profit annually = 4% Interest rate = 7%…
Q: What is the real interest rate if the nominal interest rate is 3% and inflation is 2%?
A: Inflation rate will be the part of real interest rate. Inflation rate means increase in prices which…
Q: t is the monthly amortization for a period of four years? is the total interest earned? word problem…
A: Loans are paid by the equal monthly payments and these payments carry the payment for principal…
Q: Northwest Corporation is estimating its WACC. Its target capital structure is 35 percent debt and 65…
A: Here, To Find: Part A. Cost of debt =? Part B. Cost of equity =? Part C. WACC =?
Q: Mrs Ireen Ndhlovu kaleji has US$ 2,000 which she is planning to exchange with Zambian Kwacha. She…
A: Cross exchange rate When there is no direct quotes available, cross exchange rates are used to…
Q: Suppose the European C80 (100) = 30 suddenly becomes an American option. Are there arbitrage…
A: Arbitrage is the simultaneous buying and selling of an item in separate marketplaces in order to…
Q: Assume that expected rates of inflation over the next 5 years are 4 percent, 7 percent, 10 percent,…
A: Average inflation rate = ((1+i1)*(1+i2)*(1+i3)*(1+i4)*(1+i5))1/n-1 Where i1 = Inflation rate year 1…
Q: determine the structure of prices of the forward unitary zero coupon bonds.
A: Zero coupon bonds are bonds that are issued at a discount (price lower than par value). At maturity,…
Q: A major repair on the suspension system of Jane's 3-year old car will cost her $3.000 every 3 years…
A: The equivalent annual cost is a capital budgeting tool used to measure the cost-effectiveness of the…
Q: Brown Mack Ltd currently has two large manufacturing divisions that share a single plant. Brown Mack…
A: Overheads are the indirect expenses that are incurred in the business. They are allocated on…
Q: will result in an ending balance of: (Report an integer)
A: Ending balance will arrive when we multiply the initial amount with 1 + rate of interest and number…
Q: Ms. Nelson will receive $12,000 a year for the next 20 years from her retirement fund. If a 6…
A: Annual payment = $12,000 Period (N) = 20 Years Interest rate = 6% Current value of present value = ?…
Q: The variance (risk) of an N-asset portfolio can be written as: N-1 o² = +¹ Cov 2 where o² is the…
A: Variance of the portfolio is a function of variance of returns. Covariance is a measure of how two…
Q: Country Switzerland (Franc) CHF Euro € USD equivalent BID 0.8653 1.4000 ASK 0.8667 1.4200 What is…
A: Cross-exchange rate is a method of cross-currency triangulation that provides for the exchange rate…
Q: Part 1: In which account will he earn more interest? Select one of the choices below. O A. He will…
A: Information Provided: Cash prize = $1225 Interest rate = 6% simple interest Interest rate = 5.75%…
Q: Isolde Corporation, a manufacturer of land mines used in civil wars, has operations around the…
A: Solution: Correct answer is option (5) none of the above reaction is consistent with informational…
Q: New share price|NPV > announced] The market cap of the firm is $100 million (10 million shares at…
A: Market price per share = (Market Capitalization + Present value of cash flow)/ No of shares…
Q: What are the tax consequences to and Corporation on the following dates: January 1, ; January 1,…
A: Stock option is an option given by the company to its employees to purchase shares at less than…
Q: The higher the firm's tax rate, the lower the firm's after-tax cost of debt and WACC will be (other…
A: WACC depends the cost of debt and cost of equity and their weight in the capital structure of the…
Q: Cori's Corporation has a book value of equity of $13,380. Long-term debt is $8,550. Net working…
A: As per acounting principle, Total Assets = Total liabilities + Shareholders' equity Fixed Assets +…
Q: vestor purchases 250 shares of ABC stock at $313 per share. The investor deposits the initial margin…
A: Brokers provide margin for trading in future and options and they also provide loans and they charge…
Q: What is the Current Yield of a Bond selling at $897 and has a Coupon Rate of 5%? 5.57%…
A: Solution:- Current Yield means the percentage of coupon amount to the current market price of bond.…
Q: What is the purpose of pro forma financial statements on this table?
A: Porforma financial statements are considered as forecasted financial statements for future years…
Q: 6. Find the monthly amortization for a loan of Mr. Frederick Dizon amounting to P750,000 to be paid…
A: a. Periodical rate of interest: Since the loans will be paid off in EMIs, the monthly interest rate…
Q: how much will you pay for a share today?
A: Price of the share means price at which share is currently sold in the market. It is important from…
Q: At the time of her grandson's birth, a grandmother deposits $9000 in an account that pays 8%…
A: We will use the below formula to calculate the future value Future value = PV*(1+r)n Where PV -…
Q: Calculate the Net Investment of this project, Calculate the Net Cash Flows for the five (5)…
A: Net Present Value: It is a measure of profitability used in capital budgeting to determine the…
Q: & 15) i Acme Auto Repair entered into an agreement to lease equipment from Cromley Motor Products on…
A: Lease payment give the right to use of assets by paying the annual payment to be paid at the…
Q: You have bought property today for $600,000. You have estimated that it will provide monthly net…
A: Implied rate of return Implied rate of return helps investors understand the return on investment…
Q: A passbook savings account has a rate of 8%. Find the effective annual yield, rounded to the nearest…
A: Y = (1+(r/n))n - 1 Where Y = Effective Annual Yield (TO be calculated) r = Annual rate of interest…
Q: Which of the following statements regarding dealers is least accurate?
A: Answer: Option 2. They fill their clients’ orders by trading with them.
Q: Lean systems require large batch sizes to gain economies of scale. Question content area…
A: Lean system are designed to produce output with fewer resources than traditional planning.…
Q: Western Gold Property Development Company is refurbishing a 200-unit condominium complex at a cost…
A: Initial cost = $1,875,000 Annual cash flow = $415,350 Period = 7 years
Step by step
Solved in 4 steps
- What is the future value of a lump sum of $18,443 invested for 15 years at 3.2 percent compounded annually? $29,581.97 $348,092.67 $29,786.22 $400,306.57The present value of $64,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interes Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197The present value of $60,000 to be received in one year, at 6% compounded annually, is _____ (rounded to nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75132 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55840 0.50835 0.38554 0.32197 a.$3,396 b.$60,000 c.$63,396 d.$56,604
- 3. If money is worth 10% compounded quarterly, which of the following obligations is more valuable? Use at the end of 9 years as comparison date. a. ₱ 300 000 due at the end of 9 years without interest; or b. ₱ 160 500 due at the end of 5 years with accumulated interest from today at the rate of 7% compounded semi-annually.The present value of $40,000 to be received in 2 years, at 12% compounded annually, is _____ (rounded to the nearest dollar). Use the following table, if needed. Present Value of $1 at Compound Interest Periods 5% 6% 7% 10% 12% 1 0.95238 0.94340 0.93458 0.90909 0.89286 2 0.90703 0.89000 0.87344 0.82645 0.79719 3 0.86384 0.83962 0.81630 0.75131 0.71178 4 0.82270 0.79209 0.76290 0.68301 0.63552 5 0.78353 0.74726 0.71299 0.62092 0.56743 6 0.74622 0.70496 0.66634 0.56447 0.50663 7 0.71068 0.66506 0.62275 0.51316 0.45235 8 0.67684 0.62741 0.58201 0.46651 0.40388 9 0.64461 0.59190 0.54393 0.42410 0.36061 10 0.61391 0.55839 0.50835 0.38554 0.32197What present value amounts to $11,273.57 if it is invested for 5 years at 10% compounded annual?The present value is $. (Round to 2 decimal places.)
- 1) Determine how much is in each account on the basis of the indicated compounding after the specified years have passed; P is the initial principal, and r is the annual rate given as a percent. (Round your answers to the nearest cent.) P = $5000 and r = 3.1%, compounded annually (a) after 6 years$ (b) after 10 years$ (c) after 15 years$ (d) after 34 years$a. $4,000 received at the end of each year for 2 years compounded annually at 12%.The future value (FV) for this scenario is b. $2,000 received at the beginning of each year for five years compounded annually at 8%. The future value (FV) for this scenario is . Part 3 c. $7,000 received at the end of the fifth, sixth, seventh, and eighth years at 7% compounded annually. The future value (FV) for this scenario is .JRT Publishers invests P100,000 today to be repaid in five years in one lump sum at 12% compounded annually. If the inflation is 4% compounded annually. How much profit, in today’s pesos, if realized over the five-year period? Formulas: a) Solving for the future account (F) F = P(1+i)ⁿ b) Solving for the equivalent future amount in today’s pesos due to 4% inflation: P = F / (1+ i)ⁿ c) Profit = P – F
- An investment of S6,560 earns interest at the rate of 5% and is compounded quarterly. What is the accumulated value of the investment at the end of 7 years? USe A = P (1+r/n)nt a59.289.00 b. S6,794.00 c. $11.245.00 d. $2.296.00Which among the following is the present value of Php 40, 000 due in 6 years if money isworth 10% compounded annually?A. 28, 198.42 B. 29, 188.42 C. 38, 198.42 D. 39, 188.42A series of year and payments extending over eight years are as follows: First Year : P11,085 Second Year: P23,819 Third Year: P30,911 Fourth-Eight Year: P40,000 Assuming money is worth 12.15% Compounded annually. Determine the ff: a.) Present Value of all payments. (Answer: 108,138.03) b.) Equivalent semi-annual payments. (Answer: 10,627.783) Note: Show the step by step solution. Don't use excel.