Technique commonly used when an uncertain single factor determines the selection of an altenative of an engineering project. O a. Uncertainty analysis O b. Breakeven analysis Oc. Economic analysis o d. Balanced assets analysis
Q: -year long-term bonds currently yield 10%. The real risk free rate is 2%. The maturity risk…
A: The yield on the long term bond is combination of risk free rate, inflation and maturity risk…
Q: identify at least three positives and three negatives about the loan request
A: Loan Application: The document on which the lender bases its loan decision. A loan application is…
Q: Find the interest due loan of 5,500 at 3/4% simple interest for 1/4 year, using exact interest
A: To calculate the interest amount we will use exact interest formula as follows: Interest amount =…
Q: Suppose you invest into Fund X for 15 months with a monthly interest rate of 8%. Each month you pay…
A: Future Value: It is the worth of a current asset at a future date based on an assumed rate of…
Q: Identify the type of merger in the following case: ABC manufactures furniture. It acquired a…
A: Merger means acquistion of one business by another. There are two parties involved in merger…
Q: Provide an evaluation of the two proposed projects whose cash flow forecasts are found below:…
A: “Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…
Q: ou are given the financial information for the Unic Company: Earnings Before Interest and Tax…
A: Company Equity is the difference between the assets and liabilities of the company . We also…
Q: If the manager of a gold mine wants to protect its operations against a market price decline, while…
A: It is a financial instrument whose value/price is determined by the given assets. Options, forwards,…
Q: 4. In a CDS the accrual payment is a payment made by CDS and occurs when the to CDS defaults a.…
A: The answer is option b. seller; buyer; reference entity. In a CDS, the accrual payment is a payment…
Q: National Co.’s stock sells for P35 that recently paid a P5 dividend. The growth rate will remain the…
A: As per formula Cost of newly issued equity = [D0*(1+g)/(P0-F)]+g Where D0 - Recent dividend i.e. P5…
Q: in facility for a short sale, Stella sold 200 lots of TULIPS shares at a price of $7,000. Initial…
A: When you short sell the stock than you will get profit if prices goes below the selling price of…
Q: Create a plan of investment on a bank and solve its interest with respect to the rate offered and…
A: Simple interest is computed on the loan's initial main amount, but compound interest is calculated…
Q: 22) The current exchange rate is 0.85 euros per dollar, but you believe the dollar will decline to…
A: The expected exchange rate between two currencies in the spot market on a specified future date. It…
Q: Professor Wendy Smith has been offered the following opportunity A law firm would like to retain her…
A: Upfront Payment $ 49,000.00 Number Hours worked in Month 8 Per Month Rate $…
Q: National Co.'s capital structure consists of 30% long-term liabilities, 30% preferred stock, and 40%…
A: Weighted average cost of capital is calculated as: = Sum of (Weights * Cost of instrument)
Q: Suppose you purchased a stock a year ago. Today, you receive a dividend of $16 and you sell the…
A: To calculate the purchase price of stock we will solve the following equation Rate of return =…
Q: The following are bad consequences of inadequacy of financial risk management EXCEPT a. The entity…
A: Risk management is the process which involves a proper identification of the risks that an…
Q: The common stock of Shepard Auto sells for $47.92 per share. The stock is expected to pay $2.28 per…
A: To calculate the market rate of return we will use following formula Market rate of return =…
Q: What is the total return of an equal-weighted index over the holding period given the following data…
A: Return refers to the additional earnings over the invested amount. Basically, it is a profit which…
Q: Tower City aims to construct a new bypass between two main routes that will reduce commuter travel…
A: Here, Cost of Route is $15 million Cost Savings is 17500 people $100 per year Cost Expense is $7500…
Q: [The following information applies to the questions displayed below.] Allison, Keesha, and Steven…
A: A partnership is a legally binding agreement between two or more persons to manage and run a…
Q: What is the price of a U.S. Treasury bill with 36 days to maturity quoted at a discount yield of…
A: Treasury bills are referred to as short-term debt obligations which are backed up by the U.S.…
Q: 5. What is the Capitalized Worth, when i= 10% per year, of $3000 per year, startıng in one yea…
A: Capitalized cost of a project can be defined as the present value of all costs that will be incurred…
Q: ou just won the NY State Lottery. The Grand Prize is $275 million. Lottery officials give you a…
A: Upfront payment $ 27,50,00,000.00 Periodic Payment 15000000 Time Period 25 Interest…
Q: A tractor was purchased for $74486 and at the bank interest rate of 4.67% per year. The residual…
A: Compound interest is interest charged on a loan or deposit. It is the most widely utilized idea in…
Q: Which is false about Market efficiency? Advancement in trading technology pave way to increase…
A: Market efficiency can be explained as a theory that states that the price of the share is…
Q: ibe how agency conflicts in multinational corporation can be addres
A: Agency problem exist in the corporation due to conflict of interest between the managers and…
Q: 3. A project requires an initial investment of $1,000,000 and generates annual income of $300,000…
A: Present Worth Method: Cash flows of every elective will be decreased to time zero by assuming an…
Q: Which of the following statements is/are true? Statement 1: The PSE is a self-regulatory…
A: Financial markets are said to be perfect when trading costs are very low, access to financial market…
Q: Choose the correct answer. 6. Determining one's current financial situations involves a.…
A: Thanks for the Question: Bartleby's Guideline: “Since you have asked multiple question, we will…
Q: The real risk-free rate of interest, r*, is 3%. Inflation is expected to be 4% this year, 5 percent…
A: Bonds: It is an agreement by a borrower to pay a a money lender their principal and usually…
Q: What is the present value of a $360 payment in one year when the discount rate is 9 percent? (Round…
A: Payment in 1 year (P1) = $360 n = 1 year r = 9%
Q: Find the value of the unknown quantity Z in the following diagram, such that the equivalent cash…
A: A diagrammatic representation of cashflows over a period of time is called cash flow diagram. Given…
Q: traig tô Inves nut cracking machine. The plant engineer has gathered the following data regarding…
A: Data given: Description Data First cost ($) 250000 Annual Benefits (1st year) ($) 73000…
Q: The equivalent annual-pay yield-to-maturity (YTM) for a 5.28% coupon monthly-pay bond is closest to…
A: Annual yield to maturity = 0.0528 Monthly yield to maturity (YTM) = 0.0044 (i.e. 0.0528 / 12) Number…
Q: rate is 1,000,000 vehicles. Determine public project is justified (i=5%). O The project is justified…
A: The net present value of the project that is difference between the present value of cash flow and…
Q: What is the portfolio beta?
A: Portfolio beta = (W1*B1) + (W2*B2) + (W3*B3) Where W1 = Weight of stock 1 W2 = Weight of stock 2 W3…
Q: GS Co. has a financial break-even point at P260,000. Th company paid an annual interest of P80,000…
A: Financial Breakeven point is the minimum level of EBIT needed to satisfy all the fixed financial…
Q: Company XYZ declared a dividend of Php 19,773,000 for its common stock. Suppose there are 42,504…
A: The Dividend is the profit that is paid out to the shareholders by the firms out of the current…
Q: What are the pros and cons of including cryptocurrencies such as Bitcoin and Ethereum in investment…
A: Cryptocurrency It is a virtual currency secured by cryptography to work as a medium of exchange,…
Q: An analyst is studying the movement of the stock Philippines. His research and came up with a…
A: Total expected return (R) = 0.17 Probability of Strong economy (Ws) = 0.30 Probability of normal…
Q: A two-year project has sales of $582,960, cash costs of $411,015, and depreciation expense of…
A: Depreciation expense = $68,109 Tax rate = 0.24 Depreciation tax shield is also known as saving of…
Q: poking to purchase a home that costs $ 160,000. The interest rate is currently at 3.7 %. payment…
A: Mortgage loans are paid by equal monthly payments that carry the payment of interest and payment of…
Q: The National Company’s bonds have 4 years remaining to maturity. Interest is paid annually; the…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: A stock has a dividend growth rate of 2% and a required rate of return of 5%. Bad news reduces the…
A: Existing growth rate = 0.02 New growth rate = 0.01 Rate of return = 0.05 Lets assume next dividend…
Q: Determine the present value of a 4 month, 13 1/2 simple interest loan. if its final amount is 31,350
A: To calculate the present value we will use the simple interest formula as follows: Present value =…
Q: Liam was offered by AMS bank and TML bank with the following conditions: AMS BANK offers him Php…
A: AMS Banks's Offer Payment (Lumpsum) PHP 88,000.00 Time Period 2 Payment (Lumpsum)…
Q: GsCo.’s stock sells for P35 that recently paid a P5 dividend. The growth rate will remain the same…
A: Expected Return: The expected return is the minimum required rate of return which an investor…
Q: A firm has an net operating profit of P300,000, interest of P35,000, and a tax rate of 25%. The firm…
A: WACC = (Cost of equity * Weight of equity) + (Cost of debt * Weight of Debt * (1- Tax rate)) Firm…
Q: National Co. has portfolio consist of three shares below: Stock Investment Beta АВС 140,000 1.45 CDE…
A: Stock Investment Beta ABC 140000 1.45 CDE 75000 1.2 EFG 160000 0.7
Step by step
Solved in 2 steps
- Which of the following statements is incorrect?(a) Economic decisions arc time invariant.(b) Time and risk arc the most important factors in any in vestment evaluation.(c) For a large-seal!! engineering project. engineers must consider the impact of the project on the company·s financial statemen ts.( d) One of the primary roles of engineers is to make capital expenditure decisions.While an engineering manager may prefer to use CFAT estimates to evaluate the AW of a project, a financial manager may select AW of EVA estimates. Why are these preferences predictable?The acronym TELOS provides guidance for accessing project feasibility. The term stands for technical, economic, legal, operational and schedules feasibility. Required: Discuss these feasibilities briefly. And elaborate cost-benefit analysis under economic feasibility.
- Why is it important to make the distinction between company required rate of return (WACC) and project required rate of return when evaluating projects?QUESTION FOUR Discuss how the following factors could impact an Investment Decision: Risk and Uncertainty Length of Project Size of investment project Economic and Market environment Experience and technical knowledge of ManagementWhich of the following statements is (are) true about project appraisal methods: (i) NPV is the best measure for project appraisal even when capital is rationed. (ii) IRR measures percentage returns of an investment rather than added value. (iii) Contrary to real options, NPV assumes a now or never decision to invest.
- discusses the acronym TELOS which providesguidance for accessing project feasibility. The term stands for technical, economic, legal,operational and schedules feasibility. Discuss these feasibilities briefly. And elaboratecost-benefit analysis under economic feasibility1. Analyse the significance of gearing and insolvency for project cost 2. Evaluate labour cost as a major project cost.The analysis of the effect that a single variable has on the net present value of a project is called _____ analysis. Group of answer choices variable erosion sensitivity scenario cost-benefit
- ________ of a project are those that will occur whether a company accepts or rejects a project. a. Opportunity costs b. Erosion costs c. Sunk costs d. Working capital costsInternal Rate of Return is used: a) To determine the interest rate at which benefits of a project are equivalent to its costs. b) To determine which investment to choose when one of two alternatives must be chosen. c) To determine the interest rate for an investment that yields no income. d) To choose an investment that necessary to preserve the operation of the business. e) To justify a “lost-leader” project of a strategic nature.__________ considers the impact of changing one or more inputs or assumptions on the resulting answer (output) of an analysis. a.Sensitivity analysis b.Capital rationing c.Expected value analysis d.The net present value method