If the available stable funding is 25M and the net stable funding ratio is at 15%, what could have been the required amount for stable funding?
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If the available stable funding is 25M and the net stable funding ratio is at 15%, what could have been the required amount for stable funding?
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- Answer the following lettered questions on the basis of the information in this table: a. If the interest-rate cost of funds is 8 percent, what will be the optimal amount of R&D spending for this firm?b. Explain why $20 million of R&D spending will not be optimal.c. Why won’t $60 million be optimal either?A project has an initial cost of $40,000, expected net cash inflows of $9,000 per year for 7 years, and a cost of capital of 11%. Requirements: What is the project’s NPV? What is the project’s IRR? What is the project’s PI? What is the project’s payback period? What is the project’s discounted payback period?You are evaluating a project that costs $75,000 today. The project has an inflow of $160,000 in one year and an outflow of $65,000 in two years. What are the IRRs for the project? What discount rate results in the maximum NPV for this project?
- What is the NPV of a project with an initial investment of $100, a cash flow in one year of $105, and a discount rate of 10 percent?A project has a NPV of 15,000 when the cutoff rate is 10%. The annual cash flows are 20,505 on an investment of 50,000. What is the profitability index?An investment project has annual cash inflows of $4,200, $5,300, 6,100 and $7,400 and a discount rate of 14 percent. What is the discounted payback period for these cash flows if the initial cost is $7,000? What is the discounted payback period for these cash flows if the initial cost is $10,000? What is the discounted payback period for these cash flows if the initial cost is $13,000? Do not round intermediate calculations and round your final answer to 2 decimal places.
- If a project requires a $1000 initial investment, it returns $500 at the end of the first year, $600 at the end of the second year, $700 at the end of the third year, and -$500 in the fourth year. Calculate MIRR for this project if the discount rate is 9% Group of answer choices 15.96% 10.45% 14.77% 11.99%Wandering RV is evaluating a capital budgeting project that is expected to generate $36,600 per year during its five-year life. If its required rate of return is 14 percent, what is the value of the project to Wandering RV? Do not round intermediate calculations. Round your answer to the nearest cent.Giorgio Co. is looking at an investment project with an internal rate of return of 10.8%. The initial outlay for the investment is $90,000. The hurdle rate or minimum acceptable rate of return is 10.2%.
- Would you rather have $7,500 today or at the end of 20 years after it has been invested at 15%? Explain your answer. The following are independent situations. For each capital budgeting project, indicate whether management should accept or reject the project and list a brief reason why.Project Y cost $8,000 and will generate net cash inflows of $1,500 in year one, $2,000 in year two, $2,500 in year three, $3,000 in year four and $2,000 in year five. What is the NPV using 8% as the discount rate?A project has the following projected outcomes in dollars: $250, $350, and $500. The probabilities of their outcomes are 25%, 50%, and 25%, respectively. What is the expected value of these outcomes?