Suppose DAVID wants to have P10,000,000 to retire 45 years from now, how much would she have to invest with an annual rate of 15%? A. P17,844 B. P18,561 C.  D.

Q: An amount of 50,000 was borrowed at an interest rate of 10% per year and was to be repaid over a 5-y...

A: Cash Flow Diagram: Income and expenses over some time interval are visually represented in cash flow...

Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed o...

A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11  

Q: return on equity ratio

A: The ratio refers to the relation between two financial values which shows the comparison between the...

Q: he zero-growth model of stock valuation; a. implies a zero growth in stock price over time b. impl...

A: Zero growth model of stock valuation assume that the firm will pay the same dividend forever. There ...

Q: A government bond pays coupons at an annual rate of 6%. It has a nominal value of K100 and it will b...

A: Dirty price of a bond The bond price is called dirty price when it included the accrued interest. Ac...

Q: If P30,000 is deposited each year for 9 years. How much annuity can a person get annually from the b...

A: An annuity refers to a fixed amount or stream of payments or deposits made. Therefore, it helps in p...

Q: An asphalt road requires no repairs until the end of 2 years. At the end of 3rd year, P90,000 will b...

A: Here, Here, From Year 1 to Year 2, Repair cost is P0 From Year 3 to Year 7, Repair Cost is P90,000 ...

Q: please solve by hand instead of using excel. thank you! 3. Use an external investing rate of 12% and...

A: Rate of return shows the net amount earned over the invested amount in percentage terms. It is compu...

Q: The FFR is an important influence on other interest rates, like those on car loans and home loans, b...

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

Q: 5. Finding the interest rate and the number of years The future value and present value equations al...

A: Present Value is calculated by dividing the future value by the 1+r factor for the given required ra...

Q: Annette has just inherited $180,000. She invests this money at a rate of return of 6.47% per year co...

A: Given: Present value $180,000 Rate 6.47% Another annuity $2,851 Years 20 Compounding Quar...

Q: Why is the NPV preferred over the IRR?

A: Net Present Value is a method of finding the profitability of a project by discounting future cash f...

Q: Rachel's health insurance policy has a monthly premium of $500. She has a $1,000 annual deductible, ...

A: Out-of-pocket costs are the costs incurred by the insured and include all deductibles, coinsurance, ...

Q: Adjustable Rate Payment Loan: $250,000.00 Term: 30 Years Pymt 1: Pymt 2: Pymt 3: 1st Year Rate: 3.00...

A: Loan Amount is $250,000 Term of loan is 30 years 1st year rate is 3.00% 2nd year rate is 4% 3rd yeae...

Q: With a required rate of return of 17%, the IRR of a standard capital budgeting project is equal to 1...

A: Required rate of return = 17% IRR = 19%

Q: ared borrowed Charging 3.6 070 cONpornded Monthly interest.

A: Loans are paid by equal monthly payments that carry the payment of principal amount and payment of i...

Q: Will National Debt in the U.S. will ever be 0?

A: Congress has made numerous attempts to reduce the national debt, but it has been unable to slow the ...

Q: Jhon borrows 15,000 to be repaid in equal annual installments at the end of each year for 3 years. F...

A: Annual Cost of debt: The annual cost of debt is generally the interest paid annually on debt and is ...

Q: Daryl Kearns saved $240,000 during the 30 years that he worked for a major corporation. Now he has r...

A: Net present value is the sum of the present value of net of all cash outflows and inflows discounted...

Q: A market research firm with current sales of $750 does not expect any growth in sales for the next t...

A: Current Sales are $750 Growth rate in sales is 0% for next 2 years Tax rate is 34% Straight line dep...

Q: Dorpac Corporation has a dividend yield of 1.6%. Its equity cost of capital is 7.1%, and its dividen...

A: Dividend discount model refers to a stock valuation model which is used by the company for estimatin...

Q: A retail kiosk has listed a pair of sunglasses for $136 less 30%. A department store in the shopping...

A: List price of a good is the price demanded by the supplier. It is the price advertised in the catalo...

Q: A stock does not currently pay required return is 6%. What is the value of the stock?

A: Stock price is defined as the maximum price that an investor is ready to pay for a stock. It is calc...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Given: Cost of machine = $80 Million Working capital = $20 Million Tax rate = 30%

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Operating cash flows is the cash flows generated from normal operations. It can be calculated Operat...

Q: Calculate the missing information based on the format of the income statement. Net sales : $4,236,00...

A: Net Sales are of $4,236,000 Gross margin is of $1,830,000 Net profit of $659,500   To Find: Cost of...

Q: (a) (Write the parameters you use in TVM-Solver.) What quarterly payment will Mike be required to ma...

A: Loan amortization refers to a schedule which is prepared to shows the periodic loan payments, amount...

Q: cost of capital f

A: The current cost of capital refers to the amount of return which company required in order to achiev...

Q: What is the project's IRR?

A: Internal Rate of Return (IRR) is defined as the minimum rate of return that gives zero valuation to ...

Q: Your parents can take out a federal Direct Plus loan to pay for the total remaining cost of your und...

A: Given: Simple interest rate = 6.84% Years =10 graduation on June 1st Loan taken date = 1st September...

Q: You are considering an investment in Justus Corporation's stock, which is expected to pay a dividend...

A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...

Q: Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash F...

A: NPV or Net present value is determined by adding the discounted value of all inflows and outflows to...

Q: 9. A retailer buys an item for RM 700. The operating expense are RM120, and the gross profit is 50% ...

A: The selling price decided by a seller for the product is known as the retail price. It is calculated...

Q: An investment project provides cash inflows of $850 per year for five ears. What is the project payb...

A: Annual cash inflow = $850 Initial cost = $5,6004

Q: You have 3 projects with the following cash flows: (Click on the following icon o in order to copy i...

A: Before investing in new projects or assets, feasibility of the project is evaluated by using various...

Q: #2 - You expect to receive a payment of $1 million in a year. That annual interest rate is 5%. What ...

A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first ...

Q: 9. In December, The Corner Coffee Spot had an average inventory of $123, 456 and retail sales of $19...

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

Q: 3. You have the option of investing money in a bond that will help to grow your money. Bond A offers...

A: Effective annual rate is the interest actually earned on the investment or paid on the loan, as a re...

Q: Consider a 9-year, $1,000 par value, 12% annual-pay bond that is currently trading at a flat price o...

A: Time to maturity of bond is 9 years Par Value is $1,000 Coupon rate is 12% Annual pay Current tradin...

Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the...

A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%  

Q: Supposing we the contract entered in is at the price of $285. We would like to evaluate our position...

A: Here, Spot price = $285. Time of contract = 4 months Forward price = $293.15. To Find: Gain or loss ...

Q: A man has purchased a new automobile. He wishes to set aside enough money in a bank account to pay t...

A: When a number of equal payments are made at equal intervals, it is called annuity. If the payments a...

Q: Consider the following investment options. Option 1: invest $5000 for 7 years at 10% compound annual...

A: FV= PV*(1+r)^n   Where, FV= Future Value PV = Present Value r = Interest rate n= time pe...

Q: v(x) = x for gains and v(x) = -2|x| for losses.

A: An investment is an asset which helps an individual to increase the net earnings in an asset by incr...

Q: Barlae Auto Repair, Inc. is evaluating a project to purchase equipment that will not only expand the...

A: Here, Initial Investment is $200,000 Increase in Net Profit per year is $14,000 Increase in Cash flo...

Q: Soprano's Spaghetti Factory issued 26-year bonds two years ago at a coupon rate of 7.50 percent. If ...

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to finan...

Q: You receive a tax slip from your Canadian mutual fund showing $1,000 of capital gains, $100 of divid...

A: Capital gains and dividend income show that the equity investment is made through the fund.

Q: What is the price of Thera Corpn's zero coupon bond with 10 years to maturity? The bond was original...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: A certain manufacturing plant is being sold and was submitted for bidding. Two bids were submitted b...

A: The discounted value of future cash flows equals the present value of money. The temporal value comp...

Q: Indicate the effects of the transactions listed, on current assets, current ratios and net income. ...

A: Fixed assets are those assets which are being held by the business for longer period of time. For ex...