The future value of this cash flow would be the present value of this cash flow, assuming i = 2% A$1000 $400 2 $200 3 greater than not enough information to tell the same as O less than
Q: 8. (1): 100.000$ after 8 years received discount 10.5% (2): 100.000$ what present value is after i
A: Since multiple questions are asked, we will solve 1st question for you as per prescribed guidelines....
Q: The leasing company has offered to finance the entire leasing deal at 2% annual interest rate. How d...
A: A lease is a contract in which one party agrees to rent an asset from another party on particular te...
Q: What is the monthly payment for a 5-year car loan of $14,000 that has an APR of 6% compounded daily ...
A: An amortized loan is repaid in equal installments. Each installment comprises interest on loan outst...
Q: Translate into symbolic proof and provide the reason for each step: If interest rates fall, then th...
A: An investment is a purchase made with the intention of earning money or increasing in value. The ter...
Q: Based on quarterly compounding, what would be yield-to-maturity (YTM) be on a 12-year, zero-coupon, ...
A: Given Information : Par value of Bond = $1000 Current traded price = $456.78 Number of years to mat...
Q: The firm invests $1,000 today, and realizes after tax cashflows in the amounts of $110, $660, and $8...
A:
Q: The firm has bonds outstanding that mature in five years. The par value of each bond is $1,000, the ...
A: Face value of bond is $1000 Coupon rate is 5% The bond pays annual coupons for 5 years until maturit...
Q: Long-term debt financing can have a possibility of more funding but is more risky in terms of long-t...
A: Long-term debt financing is the way of funding in which the institution lends long-term debt to the ...
Q: A store in a more popular location expects to sell 6 eyePhones every 15 minutes. How many eyePhones ...
A: Solution:- We know 1 hour = 60 minutes So, Expected sales in one hour = (Sales in 15 minutes/15) x ...
Q: The firm is contemplating the following (base case): Vehicle acquisition cost ...
A: The formula for the calculation of WACC is as follows: WACC=Cost of equity×Proportion of equity+Cost...
Q: Explain the call-put parity relation and how it is justified
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: The fixed payment for a mortgage is P1 297.20. The original balance is P200 000.00. If the interest ...
A: The new balance of loan will be original balance minus principal payment
Q: The equivalent present worth of the project is:
A: answer 1 + nominal rate = (1 + real rate) * (1 + inflation rate) 1 + 15.42% = (1 + real rate) * ( 1 ...
Q: 2. Interpreting Bond Yields Suppose you buy a 7 percent coupon, 20-year bond today when it's first i...
A: Solution: Since only Question 2 is reflecting full, so only solution to that question is mentioned b...
Q: The American debt as of today amounts to 12 trillion. This balloons with an interest rate of 0.16% y...
A: In order to calculate the monthly payment to be made by earning individuals, we are required to calc...
Q: You expect to have it $12,000 in one year. A bank is offering loans at 3.5% interest per year. How m...
A: Amount available after one year (FV) = $12000 Interest rate (r) = 3.5%
Q: The market risk premium is 5%. The firm has an estimated beta of 0.9 and the current risk free rate ...
A: Given Information : Market risk premium = 5%Beta = 0.9 Risk free rate = 3%
Q: A bank account pays 5.5% annual interest, compounded monthly. How long will it take the money to dou...
A: Present Value The present value is the value of cash flow stream or the fixed lump sum amount at tim...
Q: The firm is contemplating the following (base case): Vehicle acquisition cost ...
A: Operating Cash Flow (OCF) is the amount of cash generated by the regular operating activities of a b...
Q: 7.21 Consider the following two bonds which make semiannual coupon payments: a 20- year bond with a ...
A: Bond Duration: The duration of a monetary resource that comprises fixed cash flow, like a bond, is t...
Q: Accounting Question 4. Today is Mr. Wang's 30th birthday. He plans to retire on his 65th birthday. A...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Consider the following cash flow profile, and assume MARR is 11 percent/year. ΕΟΥ NCF $-115 $19 2 $1...
A: a) According to Descartes' rule of signs, there are as many IRRs as there are sign changes in the ca...
Q: How important is the ability to borrow money from an individual and what is the primary risk of incu...
A: Borrowing money is the act of obtaining money from the lender in order to fulfill a financial goal w...
Q: Why do you think crypto have negative impacts, but you still invest in crypto?
A: A cryptocurrency is a type of digital currency that is represented by a data string that is encrypte...
Q: A man bought a car for P 650,000 on an installment basis. If he paid a down payment of P 120,000 cas...
A: Car price = P650,000 Down payment = P120,000 Loan amount (PV) = 650,000-120,000 = P530,000 Period = ...
Q: Consider the following risk-free bonds available for sale in the bond market (assume annual Ecoupons...
A: The term structure of interest rates: Also known as the yield curve, the term structure of interest ...
Q: A depositor opens a new savings account with $11,000 at 7% compounded semiannually. At the beginning...
A: While making deposits into savings accounts, an individual might deposit some amount at the beginnin...
Q: Manning Imports is contemplating an agreement to lease equipment to a customer for four years. Manni...
A: A lease is a written legal agreement between a two-party lessor and the lessee. In lease agreement l...
Q: You are considering purchasing shares in First Dawn Inc. Your research reveals the dividend trend fo...
A: The stock price which is the maximum price to be paid for share consists of dividends and terminal v...
Q: what is the role of the Insurance Core Principles as it relates to underwriting risks, in the effect...
A: It is very important to evaluate and regulate the insurance supervision. There will be flaws in the ...
Q: It is a fact that teachers receive very meager salaries. Do you think this is an injustice? Explain ...
A: Teachers are the foundation of a nation's future as they educate children and guarantee a society of...
Q: 1- Consider a project of the Pearson Company. The timing and size of the incremental after-tax cash ...
A: Net Present Value is referred as the method, which are majorly used for the financial analysis for t...
Q: 3. As a financial analyst, you are tasked with finding the price per share of XYZ, a telecom company...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: What is Dantzler's horizon, or continuing, value? (Hint: Find the value of all free cash flows beyon...
A: Horizontal Value: Horizontal value or Continuing value determines the value of the company into per...
Q: What is the effective rate equivalent to 17% compounded quarterly?
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only o...
Q: (a) What is meant by the term correlation? What is meant by the term diversification? (b) Suppose th...
A: Corrleation for second part is 0.96 To Find: Expected return Standard deviation
Q: Suppose you decide to save P3,000 per month for the next three years. If you invest all of these sa...
A: Here, Equal amount at equal interval (A) = P3,000 per month Time period in years (n)= 3 years Rate o...
Q: When Microsoft went public, the company sold 2 million new shares (the primary issue). In addition, ...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: Suppose that $1,000 is invested for 4 years at an interest rate of 12%, compounded quarterly. How mu...
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...
Q: $2000 is deposited on March 1 and $1000 on April 1 in a bank that pays 4% interest. What is the tota...
A: First, we will calculate the value of the amount on 1st June taking the amount deposited on 1st Marc...
Q: sheet 3, use information to complete sheet 4 & 5 Date Closing Market Index value Closing Price for ...
A: Here, Excess Return is equal to =Return Earned - Risk Free Rate of Return Monthly Return is calcula...
Q: How do you calculate the rate on an Adjustable Rate Mortgage? O Survey the cost of funds an local ba...
A: Adjustable rate mortgage :- Adjustable rate mortgage is a kind of mortgage whoes rate is adjustable ...
Q: Princetown Corp issues 6% coupon bonds for par value today. These bonds make semi-annual coupon paym...
A: Here,
Q: Define “Financial assets"; list them and explain their evaluation criteria in the balance sheet
A: A balance sheet is a financial statement that shows the assets, liabilities, and the shareholder equ...
Q: what is an example of a discounted payback period? which is one of the six models of a capital budge...
A: Before investing in new assets or projects, feasibility of the project is evaluated by using various...
Q: Which of the following best describe a speculative stock? high risk, low volatility, start-ups high ...
A: Speculative stocks are those where the price of stock changes too frequently and are quite volatile.
Q: Bank can be a source of short-term funding in terms of credit card applications. These fundings on c...
A: Credit cards are issued by banks to individuals with good credit score. The individual to whom the c...
Q: Explain different methods for cash transactions, and the costs associated with each.How these costs ...
A: Cash transaction is referred as the transaction, which used to involve an immediate an outflow of th...
Q: Mr. Jones will invests P 5,000 in a fund at the end of each 6 months to accumulate P 100,000 to buy ...
A: Compounding of interest means, interest is received on principal as well as the earned interest amou...
Q: We are interested in making a bid for Privately Held Automotive Group (PAG). PAG is an up-and- oming...
A: Unlevered or asset beta When a company has only equity and no debt, its beta is known as unlevered o...
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- What is the present value of the following cash flow stream at a rate of 12.00%? Years: 0 1 2 3 4 CFs: $0 $75 $225 $0 $300 Select one: a. $511.28 b. $402.03 c. $546.24 d. $441.36 e. $436.99Determine the ERR (External rate of return) of the cash flows if external rate (e) is given as %19. Year Cash Flow 0 -3000 1 2000 2 4000 3 -1000 4 3000 5 4000 6 -5000 7 9000 Select one: a. 0.2988 b. 0.2638 c. 0.2565 d. 0.3073 e. 0.2783 f. 0.3491Consider the following cash flows: Year Cash Flow 0 −$ 29,000 1 14,700 2 14,200 3 10,600 What is the profitability index for the cash flows if the relevant discount rate is 10 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 15 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161. What is the profitability index if the discount rate is 22 percent? Note: Do not round intermediate calculations and round your answer to 3 decimal places, e.g., 32.161.
- What is the future value of this cash flow stream at the beginning of year 7 : $100 at the end of 1 year, $150 after at the end of year 2,200 at the beginning of year 3, $300 at the end of year 3, and 500 at the beginning of year 5 assuming the appropriate interest rate is 15%? ( The answer is 604.75 but i dont know how it came) Please show the calculations manually by formula and not by excelUse the following information Year 0 1 2 3 Cash flow -$1000 $300 $500 $700 WACC= 8.0% Calculate: a) NPV b) IRR c) Payback d) MIRR e) EAAWhat is the future value of the following cash flow stream at a rate of 5%? Do not round intermediate calculations. Years: 0 1 2 3 4 CFs: $0 $1,350 $3,750 $4,500 $6,250
- Which of the following is closest to the future value of a cash flow of $1,000 invested today for 7 years given an interest rate of 4% p.a.? Group of answer choices A) Need more information to answer the question B) $1,315.93 C) $759.92 D) $1,310.80 E) $762.90Which of the following is closest to the present value of a cash flow of $1,000 occurring in 7 years’ time given a discount rate of 4% p.a.? Group of answer choices A. $762.90 B. Need more information to answer the question C. $1,315.93 D. $1,310.80 E. $759.92Required information Cash flow series Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Annual Cash Flow ($ per year) Year Prob = 0.4 Prob = 0.23 Prob = 0.37 0 –5000 –6000 –4000 1 1000 500 3500 2 1000 1500 1200 3 1000 2000 100 Determine the expected present worth of the following cash flow series if each series may be realized with the probability shown at the head of each column. Let i = 20% per year. The present worth when the probability is 0.4 is $________ . The present worth when the probability is 0.23 is $________ . The present worth when the probability is 0.37 is $_________ . The expected present worth value is $______________ .
- What is the NPV of the following cash flows if the required rate of return is 0.09? Year 0 1 2 3 4 CF -6,816 3,577 3,505 2,732 3,757Consider the following cash flows: Year Cash flow 0 -25000 1 7000 2 6000 3 5000 4 3000 5 3000 6 1500 7 1500 8 500 Compute the rate of return represented by the cash flows.a. What is the present value of the following set of cash flows, discounted at 10.6% per year? Year 1 2 3 4 5 CF $11 $21 $31 $41 $51 b. What is the present value of the following set of cash flows, discounted at 10.6% per year? Year 1 2 3 4 5 CF $51 $41 $31 $21 $11 c. Each set contains the same cash flows ($11, $21, $31, $41, $51), so why is the present value different?