An investment will give you monthly payments of $890 for 9 years. If your required return is 8.13%, what is it worth today?

Q: A manual stamping machine currently valued at Rs. 1000/- is expected to last 2 years and costs Rs 40...

A: We need to find the present worth of costs for both machines. As manual machine's duration is 2 year...

Q: With respect to issues related to the cost of capital: Multiple Choice an increase in the debt ratio...

A: Cost of capital refers to the percentage that shows the proportion of total financed amount includin...

Q: Suppose you invest $25500 for 12 years paying 2.25% annual interest. How much will you have at the e...

A: The future value is the amount that will be received at the end of a certain period. The future valu...

Q: Q1:Compare the alternatives below using future worth analysis at i = 8% %3D per year using LCM. P Fi...

A: P : First Cost = -23,000 Annual Cost = -4,000 Salvage value = 3,000 N = 3 years   Q: First Cost = -3...

Q: Which of the following financial measures are used to determine a company's credit rating?   a)A com...

A: Company's credit rating - is a rating  which determines the credit worthiness of a company i.e., it ...

Q: Suppose a savings account pays 7% annual interest with interest compounded daily (assume there are 3...

A: Daily compounding Nominal rate= 7% Number of compounding periods = 365 Deposit = 2578 N = 3285 days ...

Q: If Expected return of stock A is 12%, Expected return of stock B is 15% and Expected return of stock...

A: Expected Portfolio or the overall rate of return of Portfolio is the total return which is generated...

Q: For items 1-10, refer to the following The owner of Dawn Winery decided to lend kegs of we amounting...

A: The rate of interest is the rate at which an investment grows. In the case of compounding, the inves...

Q: The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $40. The un...

A: Net present value - It is the sum of the present value of all future cash inflows  minus the sum of ...

Q: A note dated August 18 and due on March 9 (no leap year) runs for exactly:

A: In the world of finance 'note' refers to a legal document which is represenatation of a loan amount ...

Q: The nominal interest rate is adjusted based on _______ from the real interest rate.

A: Nominal interest rate is that interest rate before taking inflation into account. On the other hand ...

Q: An exchange traded fund (ETF) is a security that represents a portfolio of individual stocks.  Consi...

A: The ETF is trading at $366. The current price of IBM is $121.57. The current price of MRK is $36.59....

Q: Suppose the stock price is $83 and the continuously compounded annual interest rate is 7%. If the 6-...

A: Stock price or spot rate is $83 6 month forward price is $85  To Find: Forward premium

Q: When the annual cash flows are unequal, the payback period is computed by adding the annual cash flo...

A: Year Annual cf Cumulative cf 1 20000 20000 2 30000 50000 3 40000 90000 4 50000 140000 5 60...

Q: Alaska North Slope Crude Oil (ANS) $71.75/Bbl West Texas Intermediate Crude Oil (WTI) $73.06/Bbl ...

A: Worth of ANS is $76. Worth of WTI is $77.  

Q: You want to endow a scholarship that will pay $7,000 per year forever, starting one year from now. I...

A: Annual payment (P) = $7000 Discount rate (r) = 5%

Q: The formula below tells us how to obtain the maturity value on a simple discount loan if we are give...

A: Simple discount rate = 7.56% How many years for debt to double? Assuming Debt = 100 Future Value = 2...

Q: Yesterday, the value of the Australian dollar was $0.69. Today, the spot is $0.73. The Australian d...

A: Previous rate per Australian dollar (S1) = $0.69 Spot rate per Australian dollar (S2) = $0.73

Q: + Explanation of Time Needed for Payback with uneven cash flows Note: For each year in which the unr...

A: The payback period is the amount of time that is required to break even, i.e., to recover the initia...

Q: You are a manager at Northern Fibre, which is considering expanding its operations in synthetic fibr...

A: To calculate the value of project, it is required to calculate the net present value of Project usin...

Q: In November 2009, Perrigo Co. (PRGO) had a share price of $39.20.  They had 91.33 million shares out...

A: Enterprise value is also known as firm value and this is the market value of a company or a business...

Q: How much is the total assets for 2021?

A: Total Assets = Net Book value of Non current assets or Plant and equipments + Total current assets

Q: The future value of an investment is Php5,500,000 while its present value is Php3,500,000. It has a ...

A: Let the quarterly rate = r n = 13 years = 52 quarters Future value (F) = Php 5500000 Present value (...

Q: The mortgage on your house is five years old. It required monthly payments of $1,422​, had an origin...

A: a. Calculate the monthly repayments on the new loan as follows: Therefore, monthly loan payment is ...

Q: Canliss Mining Company borrowed money from a local bank. The note the company signed requires five a...

A: The amount borrowed is the present value is the discounted value of future payments. This is compute...

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The f...

A: Fund grant for each year = P120,000 for 5 years Grant each quarter = P30,000 for next 5 years  Grant...

Q: 14.) The Virginia Corporation recently issued 10-year bonds at a price of $1,000. These bonds pay $6...

A: The current price of a projected amount of money or series of payments with a predetermined rate of ...

Q: Jimmy has $212,810 accumulated in a 401K plan. The fund is earning a low, but safe, 3% per year. The...

A: Given, amount accumulated $212,810. Rate is 3% per year withdrawals are $23,000 each year

Q: Find the nominal rate of an investment with duration of 4 and a half years compounded once a year. T...

A: Time period is 4.5years Present value of investment is Php50,010 Future Value is Php60,072.82 To Fin...

Q: Solve the problem. Twin City Freezer accepts a note with face value of $5290 on June 6. The note is ...

A: Discounted the note means, receive cash against the note before the maturity period. To compute the ...

Q: Hit or Miss Sports is introducing a new product this year. If its see-at-night soccer balls are a hi...

A: Additional After-Tax Cash Flow = Increase in Production × (Selling Price - Variable Cost) × (1 – tax...

Q: Quantum Corporation has two different bonds currently outstanding. Bond M has a face value of K20,00...

A: Face Value of M bond = K20,000 Time period of M bond = 20 years Semi-annual Payments = K800 for 8 ye...

Q: Earl Miller deposited $25,000 at Y Bank at an interest rate of 12% compounded quarterly. The effecti...

A: Interest rate (r) = 12% Number of compounding per year (m) = 4

Q: A fund is to be donated by a wealthy man to provide annual scholarships to deserving students. The f...

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

Q: A total amount of money worth $50,000 bond with rate of 8% annually pays dividend quarterly is redee...

A: We need to use the concept of time value of money (TVM). According to the concept of TVM, the value ...

Q: Kolomela (Sisheni South) represented a major expansion mining project for Kumba. Kumba is considerin...

A: Sales revenue in 1st year = K20 Billion  Sales revenue in 2nd year = K30 Billion  Sales revenue in 3...

Q: QRW Corp. needs to replace an old machine with a new, more efficient model. The  new machine being c...

A: A capital budgeting project is a long-term project undertaken by the company and involves some addit...

Q: Analyse TWO (2) issues that manager would be facing when they consider changing a business firm's ca...

A: The capital structure of a firm refers to the exact mix of debt and equity used to finance its asset...

Q: Mrs. Pores invested P150,000 in a bank that pays an 13% interest converted monthly. If her account b...

A:

Q: Coval, Jurek, and Stafford describe a 2007 phone call in which Fitch stated that a 1-2% drop in hous...

A: Fitch is a credit rating agency and like other credit rating agencies Fitch rates different debt ins...

Q: t lump sum of money must be deposited into a bank account at the present time so that $500 per month...

A: Future withdrawal monthly depends on the monthly interest rate and period of withdrawal for which wi...

Q: ABC has a major supplier that offers a credit term of 2/15, n/45. Cash not yet used for payments are...

A: Credit Period:  It is the  payment terms  between the buyer and seller .Payment terms is  mentioned ...

Q: You have just received a bonus of $10,000 and are looking to deposit the money in a bank account for...

A: Value after a period can be calculated as: = Principal * (1 + Periodic Interest rate)^number of conv...

Q: Answer question 9, is it true or false

A: In the world of lending, banking and finance loans are usually secured loans and unsecured loans. 

Q: Use the following information to answer the question below.   Nielson Motors is considering an opp...

A:

Q: Brief Exercise 3-5 Determine accrual-basis and cash-basis net income (LO3-1, 3- 2) Rebel Technology ...

A: Under cash basis accounting, only cash received and cash payments will be considered for calculation...

Q: uppose you have 30 stocks, and you want to derive the efficient frontier. Number of covariances requ...

A: Covariance shows the relationship between two stocks and how the two stocks are related to each othe...

Q: Consider two stocks M and N with a standard deviation of 25% and 40% respectively. The returns of th...

A: Standard Deviation of M is 25% Standard Deviation of N is 40% Corrleation Coefficient is -1 Let Weig...

Q: Which of the following measures reflects the excess return earned on a portfolio per unit of its sys...

A: Treynor's measure is the measure of excess return earned per unit of beta of portfolio. ​ Treynor Ra...

Q: Which of the following would not be classified as a current asset? Prepaid expenses Plant, property ...

A: Current assets are those assets which are already in cash or can be converted into cash into short p...

Types of Insurance Contract

Insurance is a contract wherein an individual or entity gets financial protection from the insurance company for any damages or losses incurred. The individual or entity is called the insured, whereas the insurance company is called the insurer. The insured and the insurer enter a legal contract for a fixed term called the insurance term, and the contract is called an insurance policy.