Kingbird Corporation wants to withdraw $126,920 (including principal) from an investment fund at the end of each year for 9 years. What should be the required initial investment at the beginning of the first year if the fund earns 11%?

Q: BRCC is evaluating two options for funding its working capital during the next year. Option one is…

A: a) Option 1: Money to borrow = Fund need / (1 - Rate*180/365) / (1 - Compensating balance) + $5000…

Q: EU Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: The concept of the time value of money (TVM) states that money accessible now is valued more than a…

Q: The pension fund of Glencore Group Pte Ltd has to make a lump sum payment of USD260,000,000 in four…

A: Pension funds are pooled contributions from employers, unions, or other organizations to provide for…

Q: Buckeye Healthcare Corp. is proposing to spend $186,725 on an eight-year project that has estimated…

A: a.  Calculation of Net Present Value, using rate of return 12%

Q: GROW fund Charges a front end load of 3%, but has no 12B-1 fee an expense ratio of .5%. Assume the…

A: Front-end load can be defined as a one-time charge that is applied to the investment at the time of…

Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…

A:

Q: ELJ Corporation plans to construct its own building at the end of 10 years for an estimated cost of…

A: Given: Years =10 Cost = P15,000,000 Interest rate = 13% Future value = P24,000,000

Q: A company project needs to establish a fund within a ten-year period by making annual deposits of…

A: Beginning of the year deposits (B) = P 90000 Let the end of the year deposits = X r = 6.2% n = 10…

Q: Sheridan Company will invest $830000 today. The investment will earn 8% for 7 years, with no funds…

A: The answer is as fallows

Q: Answer the following questions related to Dubois Inc. a.    Dubois Inc. has $600,000 to invest. The…

A: As you posted multiple questions we are answering only first question kindly repost the unanswered…

Q: DDR Corporation has a 12 percent opportunity cost of funds and currently sells on terms of net/10,…

A: Total amount to be received from the customer after 60 days on term net/10 is as follows: Resultant…

Q: Crane Company will invest $830000 today. The investment will earn 4% for 6 years, with no funds…

A: Investment fund at the end of 6 years = Initial invetment x Future value factor (4%, 6 years)

Q: GROW fund Charges a front end load of 5%, but has no 12B-1 fee an expense ratio of .25%. Assume the…

A: grow fund has a Front End load fee of 5%  And Expense Ratio = 0.25% Rate of Return (before any fees)…

Q: If all the negative cash flows are moved to year 0. If the minimum attractive interest rate for the…

A: Capital budgeting is the technique through which corporations decide their capital investments.…

Q: re to made to the fund

A: Money Required (Future Value) = 40,000 Present Value (value at start) = 0 N = 3 years Quarterly…

Q: egardalast Company uses a 12% hurdle rate for all capital expenditures. Based on company policy,…

A: Discounted payback is period required to recover initial investment considering the time value of…

Q: Consider a $10 million fund with 20% incentive fees and 2% management fees that lasts 5 years, earns…

A: Hedge funds are an investment option available for HNIs because they involve complex trading…

Q: Acceleron is planning future expansion with a new facility in Indianapolis. The company will make…

A: Total value = $1.2 million Rate of interest = 10% Present value = $400000

Q: An investment project costs $19,000 and has annual cash flows of $5,100 for six years. a. What is…

A: The payback period is one of the techniques that is used by the management in order to evaluate…

Q: An investor injects $ 40,000 in a new project. After investing an additional funds of $2000 in the…

A: For Profitability Index calculation we need to first calculate the present value of cash inflows and…

Q: Sunland Company will invest $910000 today. The investment will earn 8% for 7 years, with no funds…

A: This problem can be solved using FV of $1 table factor. It can also be solved using Excel also.

Q: A company wants to save GH¢100000 over the next 5 years so that they can expand their plant…

A: GIVEN, FV = GH¢100000 N = 5 YEARS R=6%

Q: A Company sets aside Peso 200,000 at the end of each year for plant expansion. If the fund draws 8%…

A: Compound interest (also known as compounding interest) seems to be interest computed on a mortgage…

Q: Smith Investors places $50,000 in an investment fund. One year after making the investment, Smith…

A: IRR(internal rate of return) is the rate of return an investment generates in its lifetime expressed…

Q: A financial manager is considering two possible sources of funds necessary to finance a $10,000,000…

A: Current liabilities are the short-term debt of a company that is anticipated to be redeemed within a…

Q: Halifax Technologies primarily relies on 100% equity financing to fund projects. A good opportunity…

A:

Q: An A&E firm planning for a future expansion deposited $44,000 each year for 5 years into a sinking…

A: Given information: Annual payment of $44,000 Number of years is 5 years, Future value of annuity is…

Q: Michael has decided to invest $40,000 in three types of funds. Fund A has projected an annual return…

A: Investment amount = $ 40000 Return on fund A = 8% Return on fund B = 10% Return on fund C = 9%…

Q: An investment project costs $10,000 and has annual cash flows of $2,950 for six years. What is the…

A: Discounted Pay-Back (DPB) period shows time in which discounted value of inflows completely recovers…

Q: A supplier of certain suspension system parts for General Motors wants to have a contingency fund…

A: Given,  Time = N = 5 Interest rate = i = .1 Future value = FV = 15000000 Deposit= PV = 1500000…

Q: XYZ, Co. is considering the purchase of a new building that will allow them to expand their market.…

A: In taking of Capital Budgeting decision we consider the free cash flow from project. meaning of free…

Q: Tyu plans to construct an adiitional building at the end of 10 years at an estimated cost of…

A: Use PMT function in Excel with the following inputs N = 10, PV = 0, FV = 5000000, rate = 13% annual…

Q: An investment project costs $10,000 and has annual cash flows of $2,920 for six years.    a. What…

A: The discounted payback period is a method used in the capital budgeting process to determine the…

Q: Purple Cloud Inc. has $500,000 to invest. The company is trying to decide between two alternative…

A: The decision about the choice of alternative will be based on the calculation of present value of…

Q: Your company estimates it will have to replace a piece of requirement at a cost of $800,000 in 5…

A: Sinking fund is a dedicated fund set to fund a future liability by depositing small amounts…

Q: Metaz is planning to invest OMR 3500 every year for the next six years in an investment paying 12…

A: As per company policy it is only possible to solve one question in case of multiple question.

Q: The management of Osborn Corporation is investigating an investment in equipment that would have a…

A: (Annual cash inflow x Present value annuity factor) + NPV excluding cash flows = 0

Q: ter's Shop wants to start a fund to accumulate half of the expected P600,000 cost of expanding their…

A: As the money is being deposited than money growth with time and amount of compounding and grow to…

Q: An investment project costs $15,000 and has annual cash flows of $4,300 for six years. What is the…

A: Discounted payback period is a capital budgeting approach that helps in determining the total time…

Q: Ayayai Corporation wants to withdraw $125,900 (including principal) from an investment fund at the…

A: The question is related to Presnt Value. In the given question the company wants to withdraw $125900…

Q: An investment project costs $10,000 and has annual cash flows of $2,940 for six years.    a. What…

A: The discounted payback period is a forecast of the time it will take to fully recover the initial…

Q: Labeau Products, Ltd., of Perth, Australia, has $35,000 to invest. The company is trying to decide…

A: Net present value is a method of calculating company's cash flows that applies to projects that…

Q: Cargojet Corp. is preparing for the replacement of one of its jets in three years by making payments…

A: The question is based on the concept of  sinking fund to accumulate the required amount at end . The…

Q: nd of 3,000,000 for a fund set aside for operating expenses. The cost to transfer funds into this…

A: Optimum cash balance: It is the balance wherein the cost of depositing the fund is minimum if we…

Q: Eaglet Corporation has a 12 percent opportunity cost of funds and currently sells on terms of…

A: Credit terms refer to the payment time period offered to the customers at the time of sale of a…

Q: An investor has at most $10,000 to invest in government bonds, mutual funds, and money market funds.…

A: A government bond is a debt security issued by government bodies to raise long-term debt funds. A…

Amortized Loans

The term "amortization" refers to spreading the value of a loan or a debt over a series of regular payments or installments comprising of both the principal and interest amount. It generally involves the process where in the value of a loan or an intangible asset is written down over its maturity period.