With interest at 10%, what is the benefit-cost ratio for this government project? Initial Cost $243,606 Additional costs at the end of $32,572/year year 1 and year 2 Benefits at end of year 1 and year 2 $0/year Annual benefits at end of year 3 through year 10 Enter your answer as follow: 12.34 $90,556/year

Q: 20. Debt issued by Kaspi Bank currently yields 9%. A municipal bond of equal risk currently yields…

A: Given: Yield of debt issue “Y” =9% (Taxable rate) Yield on municipal bond “Ym” = 5% (Non-Taxable…

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: NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that…

A: Annual dividend = D = $1.50 Equity cost of capital = Ke = 0.12 or 12%   We will use dividend…

Q: onto 45. Bill borrowed PHP 10,000 from Mr. Will on July 11, 2018 and promised to pay it by December…

A: The question is related to the simple Interest. The Simple Interest is calculated with the help of…

Q: To what amount will ​$5,000invested for 10 years at 10 percent compounded annually​ accumulate?…

A: Initial amount (I) = $5,000 Period (t) = 10 years Interest rate (r) = 0.10 or 10% Accumulated value…

Q: What would you expect the nominal rate of interest to be if the real rate is 4.2% and the expected…

A: Solution:- Nominal rate of interest means rate of interest after the effect of inflation in real…

Q: Holding other factors constant, an increase in the tax rate on revenue generated by capital will:…

A: Increase in tax rate acts as the addition of tax liability of the business. This tax rate is…

Q: . If Jennifer contributes $500 every quarter into her superannuation fund for the next 45 years, how…

A:

Q: TargetCo has earnings per share of $5.50, 4 million shares, and a price per share of $55. If…

A: Expected Market price = PE multiple * Earnings per share = 15 * 5.5 = 82.5

Q: what is an available-for-sale security?

A: Securities are financial instruments that can be traded easily. The entities use these securities to…

Q: Carlton Co plans to buy a new machine. The cost of the machine, payable immediately, is $800,000 and…

A: Net Present value ( NPV) is a capital budgeting techniques which help in decision making on the…

Q: Andrew has been employ and open his own independent pharmacy. His annual expenses will include…

A: Implicit cost-It represents  an opportunity cost. Implicit cost in this case would be: Implicit…

Q: An engineer buys a car for $20,600. giving a down payment of $5,000. followed by 48 monthly…

A: Information Provided: Down payment = $5000 Car cost = $20,600 Monthly installments = 48 Installment…

Q: Ruth Hornsby is looking to invest in a three-year bond that makes semiannual coupon payments at a…

A: Here, To Find: Yield to maturity =?

Q: What are elements of financial reporting as per conceptual framework? Explain with example

A: The release of financial statements, which contain the income statement, balance sheet, and…

Q: 18. The six-month forward rate between the British pounu If six month interest rates are 4% in the…

A: The exchange rate between the two currencies depends on the prevailing interest rates in two…

Q: How much interest (to the nearest dollar) would be saved on the following loan if the home were…

A: Mortgage/ Borrowings:  Borrowings are the loans taken by an individual, from banks or non-banking…

Q: O year zero coupon bond is issued wit ue of $100 and a rate of 6%. What is

A: Zero coupon bond do not pay the coupon but pay the face value of bond on the maturity of bond and no…

Q: Sarah Wiggum would like to make a single investment and have ​$2.0 million at the time of her…

A: Future value (FV) = $2,000,000 Rate of return (r) = 0.04 Period (t) = 35 years Present value (P0) =…

Q: Big Rock Brewery currently rents a bottling machine for $50,000 per year, including all maintenance…

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Q: Finance Companies A and B are each considering an unanticipated new investment opportunity that will…

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Q: ABC and XYZ have total equity values of P5,000,000 and P10,000,000 respectively. If they merged, a…

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Q: Carrie wants to invest in five-year bonds that are currently priced at $872.48. These bonds have a…

A: The current market yield of the bond =Annual coupon payment/current market value. Assuming face…

Q: An IPO is offered at $9.50 per share for 7 million shares. The IPO underwriters had a spread of…

A: Offer price = $9.50 Underwriters spread = 0.0725 Underwriters pay per share = ?   Underwriters…

Q: Related to Checkpoint​ 9.2)  ​(Yield to​ maturity)  The Saleemi​ Corporation's ​$1,000 bonds pay 7…

A: Yield to maturity is that which help we can know the yield on the investment at the time of mature…

Q: A mortgage for a condominium had a principal balance of $48,400 that had to be amortized over the…

A: Monthly payment refers to the amount paid every month for a particular period of time up to the…

Q: Consider the following financial market with two risky assets x and y as well as a risk-free asset…

A: Any location or system that gives buyers and sellers the ability to exchange financial assets, such…

Q: (Related to Checkpoint 9.2) (Yield to maturity) The market price is $1,100 for a 12-year bond…

A: Solution:- Yield to maturity (YTM) means the rate of return yielded by bond, if bond is hold until…

Q: What is the future value at the end of year three of the following set of cash flows at an interest…

A: Future Value = Present value * ( 1 + Interest rate)time period

Q: What's the present value of $18,500 discounted back 5 years if the appropriate interest rate is 9%,…

A: PV = FV / (1 + r / n)nt Where, PV = Present value FV = Future value r = Rate of interest…

Q: he market price of TRUST bond is currently $890. Its par value is equa nd it is expected to mature…

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Q: Find the nominal rate compounded quarterly which is equivalent to 12% compounded semimonthly. O…

A: First we need to use effective annual rate formula to calculate nominal rate Effective annual rate…

Q: An efficient portfolio is one that:   Select one: a.   maximises return for a given level of…

A: Efficient Portfolio is the Portfolio or group of stocks invested which maximises the expected rate…

Q: Find the present value of a deferred annuity of P9565 every six months for 4 years that is deferred…

A: To calculate the present value we will use the we will use the below formula   Present value =…

Q: Discuss the implications of not having a data governance framework to support product analytics

A: Data governance is referred as the process of the management of the usability, integrity,…

Q: Thornton borrowed $250,000 at a rate of 7.25%, simple interest, with interest paid at the end of…

A: Simple interest is simple interest that means there is interest on the principal amount only and…

Q: The interest rate on a $6400 loan is 7% compounded semi-annually, and the loan is to be repaid by…

A: Here, To Find: Number of months required to settle the loan =? Amortization schedule =? Total…

Q: What is the most we should pay for a bond with a par value of $1000, coupon rate of 4.9% paid…

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Q: what is an annuity? Provide an example

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A: Share price:  The share price indicator offers information on the costs of ordinary shares offered…

Q: ich of the following will not reduce risk in a portfolio?   Select one: a.   Selecting two…

A: Portfolio risk :- A portfolio is a combination of various assets that carries a risk that the value…

Q: If you deposit ​$3,500today into an account earning an annual rate of return of 11​percent, what…

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Q: a loan of 10,000 is to be repaid during 4 years with equal monthly payment of P. the nominal…

A: Loan amount              10,000.00 Time Period 4 1st Year Interest Rate 2% 3 year Interest…

Q: Bianca purchased a $5,000 bond that was paying a coupon rate of 4.50% compounded semi-annually and…

A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…

Q: Calculate the simple interest earned on an investment of: $2 000 at 4% per annum for three years…

A: Here, Investment Amount (P) is $2,000 Time Period (T) is 3 years Rate (R) is 4%

Q: If you invested $10,000 for ten years at 6% p.a. compounded monthly, how much in total would you…

A: Compound interest is calculated by multiplying the original loan amount, or the principle, by one…

Q: Trapper Corporation is comparing two different capital structures, an all-equity plan (Plan I) and a…

A: MM Proposition I maintains that the capital structure of the company has no bearing on its value…

Q: Tara purchased a house for $475,000. She made a down payment of 30.00% of the value of the house and…

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

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Q: Phoenix Company is considering investments in projects C1 and C2. Both require an initial investment…

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Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.