Use a calculator to evaluate the amortization formula for the values of the variables P, r, and t (respectively). Assume n = 12. (Round your answer to the nearest cent.) $14,000; 5%; 4 yr
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Use a calculator to evaluate the amortization formula
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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- You 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.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.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 $ $ $ $ $ $
- Project 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.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.)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 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. ___ %Assume 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?Consider 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.
- If you invest $15,000 today, how much will you have in (for further instructions on future value in Excel, see Appendix C): A. 20 years at 22% B. 12 years at 10% C. 5 years at 14% D. 2 years at 7%Falkland, Inc., is considering the purchase of a patent that has a cost of $50,000 and an estimated revenue producing life of 4 years. Falkland has a cost of capital of 8%. The patent is expected to generate the following amounts of annual income and cash flows: A. What is the NPV of the investment? B. What happens if the required rate of return increases?Let's say you have a project which will cost $25mm to build or buy. It will produce after-tax cash flows of $4mm for 9 years with each cash flow occurring at the end of the year. At the end of the 9 years, you will also receive a residual value payment of $3mm. What is the IRR of the project? Round to the nearest one decimal place and use the % symbol. 6.3% would be the form of a correct answer.