Maintenance cost of a machine is S 100 during the second year and to increase by $ 100 every year for the succeeding 5 years.  What is the present value of the maintenance costs if the gradient to present equivalent conversion factor is equal to 32.18 ,the gradient to uniform series conversion factor is 4.59, the gradient to future equivalent conversion factor is 42.8

Q: Steber Packaging Inc. expects sales next year of $42 million. Of this total, 30 percent is expected…

A: The after-tax operating cash flow shows the financial viability of a company and whether it is able…

Q: 16. Lancaster Corp is considering two equally risky, mutually exclusive projects, both of which have…

A: IRR of project A = 11% IRR of project B = 14% Crossover rate = 8%

Q: What is your expected annual rate of return for this portfolio: stock A 1000 shares at $22/share…

A: Given, Stock A has 1000 shares at $22/share Stock B has 750 shares $11.50/share Bond $25000 Money…

Q: Apply incremental B/C analysis at an interest rate of 8% per year to determine which alternative…

A: The relation between the cost of the project and the benefits from the project is known as…

Q: Analysts expect Exxon Mobil stock to pay a dividend of $3.43 in 1 year and is expected to sell for…

A: Expected dividend of Stock in year 1(D1) = $3.43 Expected Selling Price of Stock in year 1(P1) =…

Q: Ivanhoe Company’s income statement for the year ended December 31, 2020, contained the following…

A: Statement of cash flow from operating activity Net income 88000 Adjustments:   Depreciation…

Q: us ways to manage the funds of a business ente

A: Step 1 It is a way of planning, organizing, managing, and analyzing financial resources to meet the…

Q: 2. You invested $39,000 in Yug Industries at an annual interest rate of 5% compounded continuously.…

A: Formula Future value = PV*ert Where PV - Investment amount i.e. $39000 e - Euler's number i.e.…

Q: What is TRUE about the Future Value general growth: I. For a given interest rate: the longer the…

A: The present value (PV) and future value (FV) of money indicate how much its worth has shifted over…

Q: A quoted rate of interest is a “nominal” rate because it includes inflation expectations. a) True…

A: Answer:-   True. The nominal interest rate comprises of the real interest rate and a premium for…

Q: Which statement best describe subprime loans? a.Loan issued to high-risk borrowers with poor credit…

A: Subprime loans are the types of loans which carries interest rate of more than prime rate. These are…

Q: Milan plans to purchase a new work truck. The dealer requires a 10% down payment on the s36,000…

A: The loan amount and down payment can be calculated as per terms of financing. The monthly payment on…

Q: What is the shape of the yield curve given in the following term structure? What expectations are…

A: Yield curve shows the relation between the interest rates of a bond with respect to the time period.

Q: Patrick makes payments of $250 per month at the end of each month. At the end of 10 years, he wants…

A: The rate of interest required to have the desired amount can be calculated with the help of rate…

Q: investors who beat the market on a given year are

A: Investors are the persons who are investing in the company for a long period of time with the belief…

Q: You have just retired with savings of $4 million. If you expect to live for 34 years and to earn 13%…

A: This is the case of an annuity due. This is because money is being spend at the start of each year.

Q: You have two options to invest $1000 in: i) A $1050 face value bond with coupon rate c = 6%. ii) A…

A: Bond is the debt security that investors uses to reduce the risk and increase stable return from…

Q: Consider the following information: Rate of Return if State Occurs Probability of State of Economy…

A: Answer a:-The following table shows the portfolio return under each state of the economy. The…

Q: Student E saves his allowance worth of P 25,000 and promised to use it only when it reaches the…

A: Present value (PV) = P 25,000 Future value (FV) = P 45,000 Interest rate = 8% Quarterly interest…

Q: a.If the interest rate is 10%, what is the present value of a security that pays you K1,100 next…

A: Since you have posted multiple questions, we shall be solving the first one for you. In case you…

Q: Mr. Jhonny bought a car worth P900,000 last January 1, 2000, and intend to sell it for P300,000…

A: Annuity means a set of finite number of deposits/payments made at equal intervals of time for a…

Q: 40. Phillips, Inc. just paid a dividend of $3.25 per share on its common stock (that is, De-3.25).…

A: Price of the stock is sum of all the discounted cash inflows from the stock. So first we need to…

Q: Project X requires an initial outlay of sh.500, 000 and has a profitability index of 1.4. The…

A:

Q: Contrast the differences/similarities of common stocks and bonds. Explain how they would be used in…

A: The difference between the common stock and the bonds is that the stocks are the shares that define…

Q: Question 20 An analyst estimates that project C's expected rate of returm is 10%, your required rate…

A: To analyse a project, the expected rate of return and required rate of return are compared. if the…

Q: A company is considering a 3-year project with a projected net income of sh. 4M, 6M,5M in year 1,…

A: Accounting rate of return is one of the techniques of the capital budgeting analysis. This technique…

Q: Bank Balance Sheet Assets Liabilities and Equity Reserves $20,000 Deposits $100,000 Loans 95,000…

A: When the total debt is divided by the total equity the outcome is known as the equity multiplier. It…

Q: The Michner Corporation is trying to choose between the following two mutually exclusive design…

A: Required return is 11% To Find: Profitability Index Net peresent Value

Q: You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of…

A: Amount available to invest = $ 10000Return of X = 12.4%Return of Y = 10.1% Desired return from…

Q: 3. Robbins Inc. is considering a project that has the following cash flows and cost capital (r)…

A: Net present value is the sum of the present values of net of all future cash outflows and inflows…

Q: Company Dividend Yield Dividend next year Chesapeake Energy Corp 7.91% $1.74 What is Chesapeake's…

A: Dividend yield = 7.91% Dividend next year = $1.74

Q: 3. PHL assembles security monitors. It purchases 900 black-and-white cathode ray tubes per month at…

A: The ideal order quantity for a company to purchase to minimize inventory costs such as holding…

Q: You put $6,500 into a Roth IRA and invest everything in a corporate bond fund.  The fund has an…

A: An investment is an asset or item purchased with the intention of generating income or appreciation.…

Q: A stock is expected to pay dividends of $1.45 per share in Year 1 and $1.68 per share in Year 2.…

A: Shares are the company’s securities which are issued by the company to raise the funds. Value of…

Q: 2.Brian invests $15,500, at 6% interest, compounded semiannually for 2 years. Manually calculate the…

A: Investment (PV) = $15500 Interest rate = 6% Semi annual rate (r) = 6%/2 = 3% Period = 2 Years Semi…

Q: Mr. Cruz deposited P150, 000.00 now, so that his 2 years old daughter will receive 5 equal amounts…

A: First payment period (t) = 15 Years Interest rate (r) = 12% Number of payments (n) = 5 Deposit…

Q: Suppose you buy a bond with a coupon of 9.6 percent today for $1,090. The bond has 6 years to…

A: Coupon Rate  9.60% Price  $                                            1,090.00 Time Period 6…

Q: Q7-8. Is it possible to convert a present value of an ordinary annuity table to the present value of…

A: Let r = Interest rate Periodic payment = P Duration = n

Q: 36) You have been accepted into college. The college guarantees that your tuition will not increase…

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…

Q: ou iust invested 549.000 that you received as an insurance settlement. How much more will this…

A: Money that is invested today earns interest. This makes the future value of money more than present…

Q: Find the mean of Terry's stock, giving the following information? Year Return 2011 22% 2012 -8% 2013…

A: Here, To Find: Mean =?

Q: (Bond valuation relationships) A bond of Telink Corporation pays $120 in annual interest, with a…

A: a) Coupon (C) = $120 Par value (P) = $1000 n = 10 years r = 10%

Q: Mr. Kinders has contributed $116.00 at the end of each month into an RRSP paying 6% per annum…

A: Monthly contribution (P) = $116.00 Interest rate = 6% Monthly interest rate (r) =…

Q: Given all else equal, if the yield to maturity of a Treasury bond decreases substantially, generally…

A: The yield to maturity is the discount rate for the bond or the return that the investor earns if the…

Q: If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a…

A: Principal Amount = $800 Time Period = 6 Months Interest = $44

Q: 8. Nichols Inc. is considering a project that has the following cash flow data. What is the…

A: The internal rate of return (IRR) is a financial metric that is used to evaluate the profitability…

Q: ardial GreenLights, a manufacturer of energy-efficient lighting solutions, has had such success with…

A: In finance external equity refers to the funds that a company has to obtain from outside the company…

Q: What are the arithmetic and geometric returns for the stock?

A: Geometric return is annualized return found by taking individual return. This return is calculated…

Q: pay out period.

A: The payback period refers to the amount which is required to cover its initial investment in the…

Q: no preferred stock. The yield to at the company's WACCs 12.60% What is Pearson's cost of common…

A: Weighted average cost of capital is the cost o capital considering the weight of the different…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.