Use a calculator to evaluate the amortization formula m = P r n 1 − 1 + r n −nt for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to the nearest cent.) $150,000; 8%; 30 yr
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Use a calculator to evaluate the amortization formula
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for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to the nearest cent.)
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- Consider the following cash flow profile and assume MARR is 10%/year. EOY NCF 0 -$100 1 $15 2 $15 3 $15 4 $15 5 $15 6 $15 Part a Determine the ERR for this project: % Carry all interim calculations to 5 decimal places and then round your final answer to 1 decimal place. The tolerance is ±0.2.Project A requires an initial outlay at t = 0 of $3,000, and its cash flows are the same in Years 1 through 10. Its IRR is 18%, and its WACC is 12% What is the project's MIRR? Donot round intermediate calculations. Round your answer to two decimal placesYou are offered an asset that costs $150,000 and has cash flows of $1,350 at the end of every month for the next 6years. Assume the cost of capital is 9percent per year.a. What is the IRR of the asset?b. What is the NPV of the asset? c. If your cost of capital is 12percent, should you purchase it? (Setup cash flows in Excel spreadsheets and uses the following Excel Financial functions, IRR, and NPV to derive your answers.
- Complete the table to find the amount P that must be invested at rate r to obtain a balance of A = $300,000 in t years. (Round your answers to the nearest cent.) r = 7%, compounded daily t 1 10 20 30 40 50 P $ $ $ $ $ $You invested $100,000 in a project and received $40,000 at n = 1, $40,000 atn = 2, and $30,000 at n = 3 years. For some reason, you need to terminate theproject at the end of year 3. Your interest rate is 10%; what is the project balanceat the time of termination?(a) gain of $10,000 (b) loss of $8,039(c) loss of $10,700 (d) just breakevenProject C requires an initial outlay at t = 0 of $2,000, and its cash flows are the same in Years 1 through 10. Its IRR is 18%, and its WACC is 8%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places.
- Project A requires an initial outlay at t = 0 of $4,000, and its cash flows are the same in Years 1 through 10. Its IRR is 15%, and its WACC is 8%. What is the project's MIRR? Do not round intermediate calculations. Round your answer to two decimal places. ___ %For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1, and PVAD of $1) (Use appropriate factor (s) from the tables provided. Round your final answers to nearest whole dollar amount.) Present Value Future Value I n ____________ $ 40,000 10% 5 $ 36,289 $ 65,000 _____ 10 $ 15,884 $ 40,000 8% ____ $ 46,651 $ 100,000 ______ 8 $ 15,376 ___________ 7% 20Assume that a money manager is considering the buy of a $35,000 machine and that he appraises that the machine will give a return (net of working expenses) of $10,000 each year for a very long time. Accept that the going pace of interest is a) 8 percent, b) 2% would it be advisable for him to get it?
- Compare the following alternatives based on the equivalent uniform annual value analysis, using a 15% annual interest rate with continuous capitalization. Alternative A Alternative B Initial Cost $18000 $25000 Annual Cost $4000 $3600 Salvage Value $3000 $2500 Life (years) 3 4Consider the following EOY cash flows for two mutually exclusive alternatives (one must be chosen): The MARR is 5% per year. Solve, a. Determine which alternative should be selected if the repeatability assumption applies. b. Determine which alternative should be selected if the analysis period is 18 years, the repeatability assumption does not apply, and a battery system canbe leased for $8,000 per year after the useful life of either battery is over.What is the present value of the following? Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. $8,100 in 14 years at 7 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
