Find the present value of 20 bimonthly payments of P1,700 each if the first payment is done at 1 year and 8 months and money is worth 18% compounded bimonthl

Q: . Inflation is expected to average 2.4% per year for the next 44 years. How much money will be…

A: Inflation rate = 2.4% Period = 44 Years Value of goods and service today = $1

Q: The par value of 10% debenture is $1,000 with maturity is 3 years. What would be the price if…

A: Given: Particulars Amount Par value (FV) 1000 Debenture interest 10% Years(NPER) 3

Q: 1- Find the internal rate using the method of Internal Rate of Return (IRR) if i = 15%, for the…

A: Internal Rate of Return (IRR) refers to the rate which equates the present value of future cash…

Q: What factors affect accounts payable turnover ratio?

A: Accounts Payable ratio is calculated by dividing total supplier purchases by the average accounts…

Q: An existing machine in a factory has an annual maintenance cost of P40,000. A new and more efficient…

A: Present value is referred as the current value of the future amount of funds or cash flow streams,…

Q: Suppose you take out a 20-year mortgage for a house that costs $286,205. Assume the following: The…

A: Rule 28% says that any persons total housing expenses could not be greater than 28% of gross salary.…

Q: internal rate of return (IRR): Group of answer choices will always lead to the same decision as…

A: IRR is a method used for investment appraisal. It is the rate of return at which the present value…

Q: Boone's last dividend was $1.80 per share, and the dividend is expected to grow at 7 percent…

A: Risk-free rate = 8% = 0.08 Beta = 0.90 Market premium = 7% = 0.07 Required Rate of Return (RRR) =…

Q: If Project A and Project B are independent, which project should be undertaken? PLEASE ANSWER THE…

A: Independent projects are those available set of investment alternatives who are not related to each…

Q: You buy a 6 year bond with an annual 5% coupon at par value, $1000. If the yield to maturity at the…

A: Solution: Bond value is the present value of the cash inflows receivable from the bond for the…

Q: An amount of $15,000 is accumulated at a simple interest rate of 8% per annum or at a compound…

A: Present value = $15,000 Simple interest rate = 8% Compound effective interest rate = 7.5%

Q: You have a 30-Year mortgage loan for $300,000 with an interest rate of 6%  If you want to pay off…

A: First, we need to calculate annual repayment: Solved using Financial Calculator  N = 30 I/Y = 6 PV =…

Q: Explain whether it is better for an investor to buy a discount bond and pay a price below its face…

A: A bond is a type of loan. The investor issues bonds to the borrower in which he uses the loan for…

Q: ou have a 30-year mortgage loan for $250,000 with an interest rate of 6% which requires you to make…

A: This pertains to time value of money.  The concept of time value of money tells us that worth of…

Q: A year​ ago, an investor bought 400 shares of a mutual fund at ​$7.52 per share. This​ year, the…

A: Given: Particulars Amount Number of shares 400 Price per share $7.52 Dividend $0.77…

Q: Amy has invested ₱500,000 on March 1, 2022 at 10% interest compounded annually for 10 years. Compute…

A: The total amount of an investment earning a fixed rate of interest will be equal to the future value…

Q: 9. A corporation has decided to use borrowed capital to finance a portion of an equipment purchase.…

A: Borrowed amount is $40,000 Time Period is 2 year Interest rate is 7% Compounded annually To Find:…

Q: Consider the following cash flows. The interest rate is 10%. What is the total wealth after 2 years…

A: Given, we are supposed to find out the cashflow price and the  amount which is to be received after…

Q: 1. Determine the amount of money invested today at 12% interest can provide the following…

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

Q: A pension fund manager decides to invest a total of at most $30 million in US treausry bonds paying…

A: Profit or interest maximization is the process of finding out the maximum profit while keeping…

Q: What is the future value of general annuity of P48,000 per annum, for 5 years, at 15% interest…

A: Annual payment (P) = P48,000 Number  of annual payments (n) = 5 Years Interest rate (r) = 15% Number…

Q: A loan of 6 semi-annual payments of 4,500 Php are to be made to pay for a loan at 5 1/2 % compounded…

A: Given That: semi-annual payments=4,500 Php n = 6 semi annual payments r =5.5%/2 = 2.75% semiannual.…

Q: You are going to invest P20,000 in a portfolio consistin g of assets X, Y, and Z, as follows:…

A: The beta of the portfolio is calculated as sum of weight of each stock and the respective betas

Q: what is the expected return on a portfolio that is invested 70 in k and 30 given the following…

A: Average Return  in scenario 1 = (16+13)/2 = 14.5% Average Return  in scenario 2 = (12+8)/2 = 10%

Q: Which of the following statements about Floating-Rate Debt is NOT true?  A) Floating-rate debt has…

A: A floating rate note is a debt instrument that allows companies to keep the interest rate variable…

Q: Suppose you create a portfolio with two securities: Security Security Weight (%) Security…

A: Portfolio means a bunch of assets or investments. To maximize the profits, investors invest their…

Q: You have just purchased an Australian Treasury Bill, which is a zero-coupon bond security with a…

A: Whatever the type of bond, when a) Bond YTM falls, Price of the bond rises b) Bond YTM rises, Price…

Q: Hunger Industries operated as a monopolist for the past several years, earning annual profits…

A: Estimated loss due to regaining monopoly position is $100 million Estimated annual profit is $40…

Q: Based on these information, how much is the firm value after accounting for excess earnings?

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: Consider the following statement: “In contexts of increased uncertainty, the usefulness of real…

A: A real option allows a company's executives the option, but not the responsibility, to pursue…

Q: You have invested your annual bonus in a one year fixed deposit at Alpha Bank which offers a nominal…

A: The effective annual rate of return is the return that an investor actually gets for their…

Q: A small coffee shop currently offers a cup of cafe latte for P106. The variable costs are P63 per…

A: Here, Number of Units Sold is 10,079 Sales Price per cup is P106 Variable Cost per cup is P63 Profit…

Q: Find the future value of an annuity due for payments of $450 for 12 years with a rate of 0.24%…

A: Solution:- When an equal amount is paid each period at beginning of each period, it is called…

Q: 15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…

A: Budget is the process by which a firm assesses truly massive projects or investments.A new plant's…

Q: 2. [Cross Rate] When 1EUR = 1.05USD and 1USD = 130JPY, calculate: 1EUR = JPY

A: 1EUR = 1.5USD 1USD = 130JPY

Q: An annuity loan of 120 000 € is taken for 15 years with monthly payments. The interest rate of the…

A: Time Period 15 Points in the beginning 0.90% Interest in the beginning 0.22% Interest after 1…

Q: Bellflower Co. stock costs $50 today.Use a1step binomial tree to estimate the price of a six-month…

A: Hedge ratio It is the ratio that justifies the portfolio value to be the same, regardless of which…

Q: he Riverton Company, a Utah ski resort, recently announced a $470,340 expansion of lodging…

A: IRR is that rate at which NPV is nil. In other words at IRR initial cost = present value of all…

Q: What is the present value of a stream of monthly payments of $500 each over 10 years, if the…

A: Monthly payment (P) = $500 Interest rate = 10% Monthly interest rate (r) = 10%/12 =…

Q: XYZ Inc., the Calapan-based computer manufacturer, has developed a new all-in-one device: phone,…

A: Here, Annual Revenues is $850,000 Fixed Operating Expenses is $100,000 Variable Operating Expenses…

Q: ou bought a stock on 1 January 2018 for $135.5 and below are the year-end price data and annual…

A: The stock price at the beginning = $135.5 Standard deviation is computed by computing the return…

Q: You own a hotel that you will receive EURO. 150,000 in rental income for next year. The rent will be…

A: Solution:- When an equal amount is receivable each period with a constant growth rate over a number…

Q: NPV Total and Differential Analysis of Replacement Decision Assume Mitsubishi Chemical is evaluating…

A: Evaluation of the alternatives of keeping the old compressor and purchasing the new compressor.…

Q: The expected returns for the two assets are given below: Asset G 17% Year Asset F 2013 16% 2014 17…

A: Year Asset F Asset G 2013 16% 17% 2014 17% 16% 2015 18% 15% 2016 19% 15%

Q: Explain the role of the Central Bank and critically evaluate the advantages and disadvantages of the…

A: The central bank performs a lot of roles which are discussed below: It maintains price stability.…

Q: Suppose that the EUR/USD spot exchange rate is EeUr'USD =0.95 and that a 12-month for contract is…

A: The rates may go up and down depending on the interest rate and there may be appreciation or…

Q: Sketch the NPV profile for projects A & B. Determine the crossover point for these projects’ NPV…

A: NPV refers to the net present value. It is the sum of present values of all cash flows occuring in…

Q: Malenia is looking to purchase a 10-year, $10,000 face value zero coupon bond. Assuming the current…

A: Price of zero-coupon bond = Face value / (1 + r) n Wherre, r = interest rate N = Time period   a)…

Q: Compute the above indicated ratios for DEL Bhd. b) Evaluate the overall performance of the company…

A: Indicated ratios are the same as Industry average ratios. So, the ratios that need to be computed…

Q: The following information is available on two mutually exclusive projects. Project…

A: Crossover rate is the rate at which the NPV of the two projects are equal. NPV is the sum of present…