Determine the present value of the following cash flows; P4,000 at the end of 4th month and every month thereafter for the first year. and P5,000 every year in perpetuity. Interest rate at 6% effective.

Q: How do you think a compromise between the major stakeholders could be reached?

A: Stakeholders is a wider term. Stakeholders means those parties who have interest in a company's oper...

Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...

A: Inventory period formula = (Average inventory/Cost of goods sold) x Number of days in a period     

Q: 5. Suppose AW(MARR) = $5 for a single alternative. Is this investment economically justified? Justif...

A: Annual Worth: Annual worth is an alternative method for FW and PW Analysis.  Almost all times; It w...

Q: Mr. Jerome has an outstanding balance of $12000 on his credit card. The interest rate on the card is...

A: Concept . Annual percentage rate. It is yearly rate of interest which the individual must pay on loa...

Q: If a bank has quarterly deposit interest expense of $1MM, an average deposit portfolio of $3.2Bn and...

A: Solution:- Interest bearing deposit cost for bank means the bank’s interest expense for its interest...

Q: Find the simple interest of P210,000 for 3 years at 5 %.

A: Simple interest is a quick and easy way to calculate a loan's interest charge. The daily interest ra...

Q: 1. If a company borrows $250,000 for four years at 9%, what would the annual loan payme nts be? If a...

A: 1) Borrowed amount (B) = $250000 r = 9% n = 4 years Let the annual loan payments = A

Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...

A:

Q: An investor buys a property for $683,000 with a 25-year mortgage and monthly payments at 7.3% APR. A...

A: Here we will first calculate the monthly payment for the loan taken Laon = $ 683000 Tenure =25 years...

Q: Assume inflation is 0.16% per month. Would you rather earn a nominal return of 0.79% per month, comp...

A: Annual rate of return = (1 + monthly return)12 - 1

Q: Investment Proposals for Orio Coffee House Daniel Jackson, CEO of OCH, has approached you to work o...

A: Net Present Value: It is the difference between the the present value of cash outflows and present v...

Q: The purpose of the __________ is to provide information to management and ownership about the financ...

A: Solution:- Income statement contains the list of expenditure incurred as well as the revenue generat...

Q: SME Balance Sheet 2021 2020 Assets (in millions) Cash 85.960 56.460 Receivables 89.560 80.6...

A: Price to earning ratio measures the price of stock relative to its earning. It cam be calculated Pri...

Q: 6. A P10,000, 8% bond pays dividends semi- annually and will be redeemed at 110% on April 29, 2027. ...

A: Here,

Q: What is the after-tax cost of preferred stock that pays a $12 dividend and sells at $100 if the firm...

A: Annual dividend = $12 Price = $100 Tax rate = 21%

Q: Yusra has a term loan that she still owes $15,483.58. The annual interest rate on this loan is 3.97%...

A: Given, The amount of loan owed is $15,483.58. Annual interest rate is 3.97%. Monthly payment is $434...

Q: A student decides to make annual payments of Php 1619 into a bank that has a nominal interest of 4% ...

A: Formula Future value = P*((1+i)n-1)/i Where P = Annual payment i.e. Php 1619 i = Annual interest rat...

Q: 12. The construction cost of a new bridge is $1.9M. Annual upkeep is estimated to be $25K. In additi...

A: The present value of cashflows which is assumed to continue for an infinite period can be defined as...

Q: why is knowledge of the money market important for carrying out value maximizing working capital sho...

A: The money market is important for the organizations and the government to keep a smooth cash flow op...

Q: quire comprises plant an machinery worth $80 million and a net working capital of $20 million. The e...

A: As per the guidelines, in the case of multipart questions, we are required to answer only the first ...

Q: Ql: you put $2500 in account bank , this bank gives interest 6.5% for the first 3 months of saving, ...

A: Since you have posted a multiple question so we will be solving the first question only. However, if...

Q: XYZ Ltd. cash budget forewarns of a short-term surplus. Which of the following would be the appropri...

A: The Surplus cash means that the business have extra cash inflows coming into the business. The cash ...

Q: If the price of good 1 is $5 and the price of good 2 is $10, then: O The consumer would have to give...

A: Opportunity cost is the cost which the investor bears for the next best alternative that is foregone...

Q: A business loan of 800,000 is to be repaid in full after 2 year. What is the amount to be paid if th...

A: Loan = 800,000 N = 2 years Effective rate of interest = 8%    

Q: Describe the services and characteristics that are of prime importance to you in a financial institu...

A: Financial institutions are the institutions in which the operations are all finance related. These i...

Q: Everything else equal, an industry with more leverage will have a: higher return on assets. higher r...

A: More leverage means more use of debt and less use of equity. 

Q: Calculate the inventory period of Havells Ltd with an annual cost of goods sold of $8 million, $1.5 ...

A: Inventory days can be said as the number of days an item of inventory is held in a company. It is a ...

Q: 1.) The option is currently a.) In-the-money b.) At-the-money c.) Out-the-money 2.) In/At/Out- t...

A: Call Options: A call option gives the holder the right, but not the obligation to buy the underlying...

Q: A nuclear power plant would generate electricity worth $50 million per year for this year and the ne...

A:

Q: Assets (in KD) Liabilities (in KD) Cash 20000 Accounts payable 80000 100000 Accrued expenses 210000 ...

A: Net sales are 900000 Propert plants and equipments are 1500000 Amortization expense are off 50,000 T...

Q: High-end airlines compete directly with other high-end airlines. When it comes to pricing, competito...

A: In a competitive environment, the companies will try to outdo each other on prices and services in o...

Q: Helen borrows $1000. To repay the amount, she makes 12 equal monthly payment of $93.12. Determine th...

A: Interest rate is a value at which additional amount is received or paid on deposited amount. Interes...

Q: Name two risk management models and how any of them can resolve an operational risk problem.

A: Risk management is that the process of recognising, analysing, and accepting or mitigating uncertain...

Q: Howard is saving for a long holiday. He deposits a fixed amount every month in a bank account with a...

A: Effective interest rate is 7.9% Future Value is $11,000 Time period is 5 years or 60 months To Find:...

Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $105 from ...

A: Monthly Deposit is $105 First Deposit starts on 1st August Closing of Account on 1st December Deposi...

Q: If you

A: Number of years: Number of years is the time period to take the present value of an invested amount ...

Q: What will be the interest rate per interest period if convert to compounding monthly?     1.9967% ...

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...

Q: Suppose a generator owner with marginal generatio costs of $35/MWh enters a swap contract to sell 80...

A: Forward contract are that are delivered in the future date and at the agreed position  and price tha...

Q: Refer to the graph below. It shows 2 indifference curves: for person A and for person B. Which perso...

A: In this question , The Indifference curve (IC) shows the various bundles of two goods that the consu...

Q: Suppose XYZ Corporation's stock price ses or falls with equal probability by $20 each month, startin...

A: Call option gives holder a right to buy a stock, but it is not an obligation to buy the stock. Optio...

Q: Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay...

A: This question is to find out the opportunity cost of capital. Opportunity cost of capital = (Current...

Q: Calculate the simple interest due on a 72-day loan of P3,000 if the annual interest rate is 4%.

A: Given: Loan = P 3000 Interest rate = 4% number of days in loan = 72 total number of days in year = 3...

Q: If an Investment of $5000 will grow to $8000 in four years with quarterly compounding the effective ...

A: We will find the interest rate by applying the requisite formula where we can use the amount 8000 an...

Q: NPV of the project

A: Net present value shows the difference between the present value of cash flow and the present value ...

Q: hat sum of money must be deposited in a trust fund to provide a scholarship of $1520.00, quarterly f...

A: Present value of amount to be received in the future will give the value of the annuity amount depen...

Q: 3. If banks heeded Shakespeare's admonition “Neither a borrower nor a lender be", what would happen ...

A: If banks had noted Shakespeare's rebuke, the circular flow of the economy will become much smaller. ...

Q: incentives of business profits create unwarranted influence in times of war

A: Business have the objective of making more profits but at the time of war like situations this becom...

Q: Prepare a schedule for the following bond, including calculations, yearly income, end-of-year accumu...

A: Given:

Q: Fritz buys a car costing $24,300. He agrees to make payments at the end of each monthly period for 8...

A: A loan is an agreement between two parties where a sum is forwarded in return for periodic payments ...