What is the present value of the following set of cash flows at an interest rate of 6% p.a. compounded annually?                                                 End of Year 1    $2,200 End of Year 2    $5,100 End of Year 3    $1,150   Select one: a. $7,580.01 b. $8,450.00 c. $7,850.01 d. $5,880.35

Q: Analyse the different capacities of Mudarib as Trustee, Partner ,Liable, Employee.

A: Mudarabah is a silent partnership agreement made up of cash and labor. It can be reached between the…

Q: General Computers Inc. Purchased a computer server for $72,000. It paid 30.00% of the value as a…

A: Here, To Find: No. of payments required to settle the loan =?

Q: BHP Billiton, an Australian company, just paid $0.85 as a dividend, which is expected to grow at 6.0…

A: Here, Current Dividend is $0.85 Growth Rate is 6% Stock Price is $82 Coupon Rate is 6% Quoted Price…

Q: An insurer issues a portfolio of identical 20-year term insurance policies to independent lives aged…

A: Present Value of loss of policy : It is nothing but the amount that the policyholder will gonna…

Q: You bought a 90-day bank bill 30 days ago. The face value of the bill is $100,000. The yie on this…

A: T-bills are issued at discount to the face value of Bill and the discount on bill is the rate of…

Q: Which of the following statements constitutes a definition of a financial plan? Group of answer…

A: Finance is the amount of money needed to run a business. Finance is the study of banking, capital…

Q: HERB, a pharmaceutical firm just paid a dividend of $5 per share. Being in an established industry,…

A: Dividend (D0) = $5  Growth Rate = 3%  Risk-free rate = 5% Risk premium = 7%

Q: What is the net income from the following incor

A: Net Sales = Sales - Sales return = 12800 - 360 = 12440

Q: Alec bought a home for $179,000. He had a $50,000 down payment and got a 30-year fixed rate mortgage…

A: Mortgage is a value which is borrowed from the external sources like banks for the particular period…

Q: A major retailer of appliances does some market research and finds that when the price of a type of…

A:

Q: t is perceived that CSR of an organization may lead to trust development among the employees which…

A: CSR is the corporate social responsibility that is acting responsibility towards the society and…

Q: Question 3 What is the future value four years from now of each of the following cash-flow streams…

A: Interest rate = 5.25% compounded quarterly Effective Interest Rate = (1 + (Interest Rate / Number of…

Q: At the beginning of the year, you purchased a stock for $35. Over the year the dividends paid on the…

A: Purchase price of the stock (P0) = $35 Dividend paid (D) = $2.75 a. Stock price at the end of the…

Q: Explain how inflation impacts capital budgeting analysis.  Why do we care? How is NPV impacted if…

A: Nominal rate and inflation rate are related to each other through real rate as shown below. Nominal…

Q: Finance What is the YTM of a four-year semi-annual pay bond with a par value of $1,000 and a 4…

A: YTM is the yield to maturity is rate of return realized if the bond is held till the maturity of…

Q: Pearson stock will pay an annual divident of $.26 next year.  If after that, the dividend grows 2%…

A: Where,P0 = Stock value D0 = Current dividend g = growth rate in decimal format  D0 ( 1 + g)…

Q: Discount Factor Year 1 0.833 Year 2 0.694 Year 3 0.579 Year 4 0.482 Required: Ascertain by computing…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: The government has two (2) plans to deal with their water supply problem in Zamboanga. Option 1 is…

A: Present value of includes the all cost that are going to occur during the use of equipment life…

Q: Assume that you borrow 20million JPY from some bank repay 80,000 JPY monthly under the plan of total…

A: Here, To Find: Case-I: 1. Total number of months =? 2. Completed years =? 3. Remaining months =?…

Q: You believe that you can set aside $1,200 each year for the next four years, starting immediately,…

A: Given : Interest rate = 4% compounded annually Year Payment 1 1200 2 1200 3 1200 4…

Q: Explain the advantages and disadvantages of having protective covenants placed into the bond…

A: Covenant of protection. A provision in an indenture or loan agreement that restricts certain…

Q: How many years must you wait for your $4,380 investment to grow to $7,700 if you invest at 5 percent…

A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…

Q: For the year ending December 31, 2017, sales for Company Y were $62.91 billion. Beginning January 1,…

A: As per the given information: Sales for Company Y ending December 31,2017 - $62.91 billionAmount…

Q: investment, what nominal rate of interest, compounded semi-annually must you earn?

A: Information Provided: Principal = $26,000 Years = 13 Semiannual payments to be received = $1700

Q: provided. After careful deliberation. Hope decides on a plan from Acadian Alliance Life Insurance…

A: Answer   (a)

Q: What is opportunity cost?

A: Opportunity cost is the cost of loosing a value of one option when another is chosen. This is an…

Q: traditional debt and alternative financing instruments for e

A: Entrepreneurs refer to an individual who is establishing the business, handling most of the risks,…

Q: We say that refinancing a loan is an "investment." Why? How could taking out a new loan, and paying…

A: When the terms of an existing loan, such as interest rates, payment schedules, or other…

Q: Equinox Outdoor Wear issues 1,000 shares of its $0.01 par value preferred stock for cash at $19 per…

A: Share price: Share price is the current market price of the share. It is the price of the share at…

Q: A marketing manager leases a car for 24 months after agreeing to a negotiated price of $44,250 and…

A: Data given: Negotiated Price=$ 44250 Down payment = 20% of negotiated price Money factor=0.0022…

Q: What is an option? How does an Option differ from a forward or future contract?

A: Derivative Security: A derivative is financial security whose price and value are determined based…

Q: 2. This graph shows interest earned by an annuity that pays $17 000 at the end of each year for time…

A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…

Q: Part 2 On October 1, ET Inc. has available for issue a $324,000 bond due in eight years. Interest at…

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Q: Kermit plans to open a boutique. The initial investment is $10,000. He has to spend $1,500 in annual…

A: Here, Initial Investment = $10,000 Annual operating and maintenance cost = $1,500 Annual revenues =…

Q: Show the answer on excel and how you did it: Puppet is evaluating two alternative, mutually…

A: Cash flows for both the options are tabulated below and the incremental Cash flows are computed Cash…

Q: , calculate the net investment for the new line.

A: Information Provided: Existing line cost = $600,000 Existing line book value = $200,000 Salvage…

Q: Assume that the price of Swiss cheese increases by 50%. Andreas Tell, a maker of Swiss cheese in…

A: The opportunity cost refers to the amount of money that is forsaken when the investor chooses an…

Q: "A furniture store has an ad for a sofa set priced at $1600. The customer is offered the choice of…

A: A loan is an agreement between two parties where one party forwards an amount for it to be paid back…

Q: Consider the following data. 14,6,−11,−6,5,1014,6,−11,−6,5,10 Copy Data Step 2 of 3:  Determine…

A: Given The data is 14,6,−11,−6,5,10

Q: The City of San Antonio is considering various options for providing water in its 50-year plan,…

A: Given, The cash flow for the first 4 years is $4.1 million The interest rate is 6%.

Q: Marty Corp is issuing a perpetual bond today that will pay $100 per year starting in 3 years. If…

A: Given: Particulars Amount Amount paid $100 Years 3 Cost of capital 5%

Q: A home video entertainment set is offered for sale for 20124 down payment and P9475 every three…

A: Given, Down payment P20124 Quarterly payment P9475 Rate 5%

Q: an can be repaid in two ways:   (i) a perpetuity-due with annual payment $1000;   (ii) a 3-year…

A: Loans are paid by the equal annual installments these carry the payment for interest and payment for…

Q: Determine the present value of an annuity for 15 years if the interest rate is 8.8% per annum…

A: An annuity is a constant stream of cash flows. In this case the cash flow amount is $72.50 in each…

Q: A friend of yours just invested in an outstanding bond with a 5% annual coupon and a remaining…

A: Face Value                1,000.00 Coupon Rate 5% Yield to Maturity 7% Time Period  10 Given…

Q: also good for 13 years. How much money would you need to invest in Investment B today for it to be…

A: Information Provided: Monthly payment (Investment A) = $1650 APR (Investment A) = 7,8% compounded…

Q: 6. Andy borrowed $800 from his father to purchase a mountain bike. Andy paid back $1,200 to his…

A: Given Amount borrowed $800 Amount paid back is $1200 Term is 5 years

Q: a farmer has developed projection of future cash flows from a new variety of brain. Yr1=50, Yr2=60,…

A: Present value will be reflective of the value of future cash flows at present after discounting the…

Q: Sepia Inc. issued $325,000 bonds that were redeemable in 7 years. They established a sinking fund…

A: A sinking fund is a fund where a debt holder can make periodic payments to for covering the debt at…

Q: What interest rate must your bank offer if you want your $2,730 invested today to grow to $3,470 in…

A: Present Value:  The present value is the present sum of a series of fixed payments. The series of…