Which two statements about robo-advisors are true?

Q: You have been awarded a 41 payment, constant growth annuity. First payment at Yeat 0 and is equal to…

A: The present value of an annuity refers to the current value of a series of future cash flows,…

Q: oblem 9-13 NPV versus IRR [LO1, 5] nsider the following two mutually exclusive projects: Year Cash…

A: YearCash flow (X)Cash flow (Y)0-$19,600-$19,6001$8,750$9,9002$8,900$7,7003$8,700$8,600

Q: Beranek Corp has $560,000 of assets (which equal total invested capital), and it uses no debt-it is…

A: Total Assets / Equity = $560,000Desired debt to total capital ratio = 40% or 0.4

Q: A local university decides to install motion detection light switches in the faculty offices. The…

A: The objective of the question is to understand the financial implications of the university's…

Q: If the rate of interest (r) is 9%, then you should be indifferent about receiving $9,500 in one year…

A: The objective of the question is to find out the present value of $9,500 that will be received in…

Q: Here is some price information on Fincorp stock. Suppose that Fincorp trades in a dealer market. Bid…

A: Bid price refers to the maximum price offered by a buyer for a security and ask price refers to the…

Q: Assume Gillette Corporation will pay an annual dividend of $ 0.64 one year from now. Analysts expect…

A: Value of share can be obtained using the dividend discount model. According to this model, dividends…

Q: Which of the following statements regarding a 20-year (240-month) $225,000, fixed-rate mortgage is…

A: The objective of the question is to identify the correct statement about a 20-year (240-month)…

Q: How is the impact of uncertainty reflected in a discounted cash flow (DCF) analysis?a) Debt/equity…

A: The objective of the question is to identify how uncertainty is reflected in a discounted cash flow…

Q: Problem 1-44 (LO 1-3, LO 1-4) (Algo) Hugh has the choice between investing in a City of Heflin bond…

A: Interest rate on City of Heflin bond = 3.45%Interest rate on Surething Incorporated bond = 4.75%Tax…

Q: Calculate the total interest and principal portions for the series of monthly payments of $166.95…

A: An annuity refers to a series of periodic payments provided/received in exchange for a lump sum…

Q: Molly deposits $2,500 in her checking account today. Her checking account pays interest of 2.5%…

A: Annual interest rate (r) = 2.5% or 0.025Principal (P) = $2,500Number of years (n) = 23

Q: 34. No Leak Roofing is considering mutually exclusive Projects A and B, which have the following…

A: NPV refers to net present value. It is the sum of present values of all cash flows of a project. NPV…

Q: We are evaluating a project that costs $845,000, has an eight-year life, and has no salvage value.…

A: Given parameters:Initial investment (project cost): $845,000Project life: 8 yearsSalvage value:…

Q: Present Value Computation Paul Jefferson made a deposit into his savings account three years ago,…

A: The present value of money refers to the concept that a dollar received in the future is worth less…

Q: Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate of 8.18…

A: Premium recovery period is also known as the payback premium term. This is the investor premium…

Q: 3%: • 3-year zero-coupon bond with face value of $1,000 • 3-year coupon bond with face value of…

A: Duration of bond shows the weighted period of bond required to receive all cash flow from the bond.

Q: Assume you plan to borrow $400,000 from your bank to buy a home. The bank offers: a 5-year fixed…

A: A five-year fixed-rate loan is a type of financial agreement where the interest rate is fixed for…

Q: A patient is planning to have his knee replaced. The patient has applied for a loan with a six…

A: Cost of capital is a financial metric that measures the amount of debt a company needs to finance…

Q: Determine the size of your investment account 30years from now (when you plan to retire) if you…

A: Future value of annuity , FV= P * ( (1+r)^t -1) /rwhere P =$12,000r=0.10t=30 yearsFV =?

Q: Please help. Assume that Almond Milk Company has a $1,000 face value bond with a stated coupon rate…

A: At $1,098.14, the bond's market price, you purchase it.As long as you own the bond, you will get…

Q: A project has the cash flows shown in the following table.  If the cost of capital is 9%, what is…

A: NPV is a method used in capital budgeting to evaluate projects. NPV can be found by deducting the…

Q: Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial…

A: Future amounti=n=1$36,0007%172$30,0009%153$41,00012%154$56,00011%9

Q: Fred is considering an investment that will cost him $1000 today and will pay $200 at the end of…

A: Any investment (or any capital budgeting case or project) will have a series of cash flow. The…

Q: Individual A owns shares of a Canadian-controlled private corporation. All of the corporation's past…

A: In this scenario, Individual A will realize a capital gain on the redemption of their shares.…

Q: Of the following investments, which would have the lowest present value? Assume that the effective…

A: The objective of the question is to determine which of the given investments has the lowest present…

Q: How long will it take an RRSP to grow to $820,000 if it takes in

A: Using Excel's self explanatory function=NPER(r/12,-monthly payment, 0,future value)

Q: fintech corporation, a large multinational firm, has various business units operating in diverse…

A: The objective of the question is to identify the strategy that would lower the risk for investors in…

Q: Ten years ago, Kronan Corporation earned $0.50 per share. Its earnings this year were $2.20. What…

A: The objective of the question is to calculate the annual growth rate of earnings per share (EPS) for…

Q: What's the present value of a 4-year ordinary annuity of $2,250 per year plus an additional $3,000…

A: The objective of this question is to calculate the present value of a 4-year ordinary annuity of…

Q: 12. If a financial contract promises you to pay $110 next year and $121 the year after that, and if…

A: Year 0 cash flow = -$200 (i.e you pay $200 now)Year 1 cash flow = $110Year 2 cash flow = $121

Q: Problem 1 Suppose it is the start of year 2008. You have $100,000 to invest and decide to invest in…

A: The solution requires understanding of optimal portfolio theory. It also requires use of excel…

Q: Calculate the future value of ​$7 comma 0007,000 earning 1010 percent after one​ year, assuming…

A: The objective of the question is to calculate the future value of an investment of $7,000 earning an…

Q: A successful software company is approached by two larger firms for a possible buyout. The current…

A: Market value: It is the value of the company based on market value of its assets and liabilities.…

Q: You are going to make 20 annual payments of $800, with the first payment made today. At the end of…

A: Future value of money is the amount of money deposited and the amount of compounded interest…

Q: Grant just joined a new gym and signed up for a one-year membership. Membership fees can be paid in…

A: Present Value is the current price of future value which will be received in near future at some…

Q: Amount to be invested Annual net cash flows: Year 1 Year 2 Year 3 Year Maintenance Equipment…

A: Net present value or NPV is the modern technique for capital budgeting. It is the most appropriate…

Q: What provides the framework for conducting return on assets (ROA) analysis by incorporating revenues…

A: The objective of the question is to identify the framework that allows for the calculation of Return…

Q: Use the compound interest formula for compounding more than once a year to determine the accumulated…

A: Here,Deposit Amount (PV) is $20,000APR (r) is 3.7%Time Period (n) is 32 yearsCompounding Period (m)…

Q: Find the present value of the ordinary annuity. (Round your answer to the nearest cent.) Amount of…

A: An annuity is a stream of cash flows that are usually fixed in nature and that occur at regular…

Q: Suppose you borrowed $15,000 at a rate of 8.5% and must repay it in 5 equal installments at the end…

A: The objective of the question is to find out the remaining loan balance after the first payment has…

Q: Suppose the Omega Graphics Company wishes to set aside an equal, annual, end-of-year amount in a…

A: Future Value required in 6 years is $5,000,000Calculating the Annual Deposit to be made each year…

Q: Andouille Spices, Incorporated, has the following mutually exclusive projects available. The company…

A: Payback period (PBP) refers to the period or duration within which the company is able to recover…

Q: 341,866 and it is 100% equity financed. The firm is considering restructuring so that it is 44% debt…

A: The Modigilani Miller model is commonly used in finance. This states the market value of company…

Q: Assume Gillette Corporation will pay an annual dividend of $ 0.64 one year from now. Analysts expect…

A: Dividend discount model is used to calculate the value of a stock by discounting the expected…

Q: You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%.…

A: Information provided:Risky portfolio rate of return (Re) = 18%Risky portfolio standard deviation…

Q: Perpetuities are also called annuities with an extended or unlimited life. Based on your…

A: The problem case focuses on identifying the correct statements about the perpetuity and calculating…

Q: "Amber recently inherited $510,000, which she immediately invested in an equity index mutual fund.…

A: HerePresent value (PV) = $510,000Monthly withdrawal(PMT) =$2000Time = 43 years or 43 x 12 = 516…

Q: If you are considering the purchase of a bond that pays $850 per year forever, and the rate of…

A: The objective of the question is to determine the price of a bond that pays a perpetual annual…

Q: A project will increase revenue from $3.6 million to $4.4 million.  Wages are 30% of revenue.…

A: The objective of this question is to calculate the incremental expenses that will result from…

Flow of Funds

The flow of funds is the financial accounts of the nation, which monitor and control the cash flow among various sectors or industries, or markets. Central banks use these flow of funds statements to acquire macroeconomic data, to publish cash inflow and cash outflow statements of the nation. This flow of funds system is utilized to identify economic activity and changes in the economy. It is used by Federal Reserve to determine the Gross Domestic Product (GDP) of the nation and to implement monetary policy and fiscal policies.