The ZXC Company deposited P5,000,000 in a bank account on June 15 and withdrew a total of P5,750,000 exactly one year later. Compute: (a) the interest which the ZXC Company received from the P5,000,000 investment, and (b) the annual interest rate which the ZXC Company was paid.
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- The following cash flows result from a potential construction project for your company: 1. Receipts of $565,000 at the start of the contract and $1,200,000 at the end of the fourth year 2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000 3. A net cash flow of $0 at the end of the third year. A Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):? Answers entered using text are case sensitive! What is the approximate ERR for this project? Number 5 Should your company undertake this project? (Enter either 'Yes' or 'No'): 198 团Consider the cash flow listed below. Year Expenses ($ M) Revenues ($ M) 45 1 25 60 40 100 3 25 15 4 50 40 20 15 35 45 a) Determine the number of possible i* values and the type of the investment b) Write (do not solve) an equation to find all rate of return values between 0% and 100% c) Find one of the rate of return values between 0% and 100% considering years 0, 1 and 2 onlySuppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost; however, she does know that the project's regular payback period is 2.5 years. Year Cash Flow Year 1 $350,000 Year 2 $400,000 Year 3 $475,000 Year 4 $475,00 If the project's weighted average cost of capital (WACC) is 9%, what is its NPV? $373,562 $336,206 $317,528 $429,596
- A firm reports that its IRR for each quarter is 1.09%. What is the equivalent annual effective rate of return for this firm expressed in percentage terms to 3 digits after the decimal point?Perth International anticipates a 4.68 per cent increase in the year-one income of its subsidiaries in year-two. It has information that the current 5.22 per cent, 8.43 per cent, 13.74 per cent and 11.63 per cent nominal interest rate in Australia, China, India and Malaysia, respectively, will remain the same in the next three years. Due to foreign currency higher nominal interest rate, subsidiaries will invest 21 per cent, 53 per cent and 39 per cent of their year-two earnings in China, India and Malaysia, respectively, for next year. Subsidiaries will remit their remaining incomes (i.e., after investment) to the Australian parent. Perth International believes in the International Fisher Effects with considering a 2.20 per cent real interest in Australia, China, India and Malaysia to calculate the expected foreign currency value against the Australian dollar for year-two based on the year-one exchange rates A$/CNY, A$/INR, and A$/MYR. What is the total Australian dollar (A$) cash flow…The following cash flows result from a potential construction project for your company: 1. Receipts of $505,000 at the start of the contract and $1,200,000 at the end of the fourth year 2. Expenditures at the end of the first year of $400,000 and at the end of the second year of $900,000 3. A net cash flow of $0 at the end of the third year. Using an appropriate rate of return method (Approximate ERR), for a MARR of 20%, should your company accept this project (Perform all calculations using 5 significant figures and round your answer to one decimal place. Also remember that text answers are case-sensitive):? Answers entered using text are case sensitive! What is the approximate ERR for this project? Number Should your company undertake this project? (Enter either 'Yes' or 'No'): %
- Suppose that you purchase a tractor for $170,000 and sell it in 10 years for $50,000. What is the annualized cost (capital recovery) if your required return on capital is 12%?Net present value (NPV) of the project =Single payoff x PVIAF (10.20%, 9 years) - initial outlay = $6,947 x 0.42340 - $2,182 = $759.39 What's the equation for the bolded item?If you sell in March a bond future contract for 125 that matures on June 30 of the same year, and at the maturity date the same future sells for 135, you have a (profit/loss) of $
- A man is considering investing P 500,000 to open a semi-automatic washing business in a city of 400,000 population. The equipment can wash on the average 12 cars per hour using two men to operate it and to do small amount of handwork. The man plans to hire two men in addition to himself and operate the station on an 8-hour basis, 6 days per week, 50 weeks per year. he will pay his employees P 25.00 per hour. He expects to charge P 25.00 for a car wash. Out of pocket miscellaneous cost would be P 8,500 per month. He would pay his employees for 2 weeks for vacations each year. Because of the length of his lease, he must write off his investment within 5 years. His capital now is earning 15% and he is employed at a steady job that pays P 25,000 per month. He desires a rate of return of at least 20% on his investment. Would you recommend the investment? Use ROR method and Annual Worth method.What is the i*% for the given project? (Round answers to the third number after the decimal) Cash Flow 0 ($7,000) 1 $3,600 2 $2,900 3 $0 4 $1,300 5 $500Commercial You are a corporate account officer with the Commercial & In- dustrial Bank Corporation (CIBC). One of your major manufacturing clients, who are re- tooling one of their factories, just bought a piece of customized machinery to be delivered in six months’ time. The company’s treasurer intends to initially finance the purchase in the short-term loan market for six months and inquires about the possibilities of locking in the borrowing cost now. The amount is USD 10m and the loan would be disbursed in a six months from now to be repaid in exactly one year’s time from now. The current SOFR term structure is as follows: Maturity (D) SOFR Rate (%) 30 0.15% 90 0.24% 180 0.33% 360 0.55% Use excel to calculate Define and calculate the SOFR forward Why or why not is it a good predictor for future SOFR rates? At expiration, e., six months after entering into the agreement, the 180D 20 SOFR stands at 0.90%. Who wins and who loses?…