You are offered a job that pays $37,000 during the first year with an annual increase of 9% per year beginning in the second year. That is, beginning in year 2, your salary will be 1.09 times what it was in the previous year. What can you expect to earn in your fourth year on the job? Round your answer to the nearest dollar.
Q: ssume a project has normal cash flows. All else equal, whic llowing statements is correct? A…
A: The pay back period is the amount of time required to recover the initial amount of investment and…
Q: 8) What lump sum should you deposit now at 1.6%, compounded continuously, to attain $750,000? 9) The…
A: Time value of money (TVM) refers to the method used to measure the amount of money at different…
Q: You are considering making a movie. The movie is expected to cost $10.0 million up front and take a…
A: Net present value is the difference between the present value of cash inflows and present value of…
Q: A gold-mining firm is concerned about short-term volatility in its revenues. Gold currently sells…
A: Strike price When a derivative contract is exercised, the strike price is the price at which it can…
Q: The company has a 25% tax rate, and its WACC is 10%. Write out your answers completely. For example,…
A: Operating Cash Flow: It is the amount of cash generated from normal business operations. Cash from…
Q: _______ When a company reports financial numbers that are lower than expected, generallya. the…
A: Company Results: These are results reported by the company to the investors and general public…
Q: 13. A sinking fund of $60,000 is to be established with equal payments at the end of each 3-month…
A: Future value or sinking fund to be established = $60,000 Quarterly interest rate = 0.03 (i.e. 0.12 /…
Q: 1. Distinguish between the conventional and contemporary scope of public finance in your own words…
A: The study of government receipts and payments is referred to as public finance. The term 'finance'…
Q: D4) What is the interest income in dollars on a $10 million art financing loan priced at 8%…
A: A loan under which the borrower pledges his/her asset to get the loan is known as a collateral loan.…
Q: What is the company's WACC? (Do not round intermediate calculations and enter your answer as a…
A: WACC refers to the joint cost of company's capital from all the sources of the company. It includes…
Q: A company had 20 000 shares of ordinary shares outstanding on January 1; on May 1, 4 000 shares were…
A: Earnings per share = Net income available to common stockholders/Weighted average number of shares…
Q: It costs P500,000 at the end of each year to maintain a section of Kennon Road in Baguio City. If…
A: Perpetuity: Perpetuity is the series of fixed payments which is incurred or received for the…
Q: What is discounting? / why do people discours?
A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…
Q: A company has net income of 213,700 a profit margin of 7.1 percent, and an accounts receivable…
A: Net income = 213,700 Profit margin = 7.1% Sales = Net income/Profit margin = 213700/0.071…
Q: Find the value (using Binomial Tree) of a European style call option on an underlying stock which is…
A: Options are instruments to hedge risk. They are a type of derivative, whose value is derived from…
Q: Given the following information, compute the current ratio Cash $ 120,000 Accounts receivable…
A: Current ratio = Current assets/Current liabilities
Q: Clifford, Inc., has a target debt-equity ratio of .80. Its WACC is 9.1 percent, and the tax rate is…
A: WACC is a weighted average cost of all the sources of capital. It is equal to the sum of products of…
Q: Money spent from a debit card is money that is borrowed and must be paid back. O True O False
A: Money spent from debit card is the money owned by the customer and is in customers account only. i,…
Q: Why is share in a considered a is perpetuit
A: In finance a perpetuity refers to that financial asset or that financial security that goes on…
Q: 10 Years 14. Given the data for two alternatives, choose the better a analysis. MARR = 8%…
A: B/C ratio = PV of Benefits/PV of costs. Alternative X: initial cost = 100,000 Operating costs…
Q: can you explain this pic by words Net Present Value Sales Net cash flow Initial investment -72000000…
A: Data given: Year Initial investment Operating cost Sales Net Cash Flow -72000000 0 0 0 2024…
Q: How long will it take for PhP 20,690 to accumulate to PhP 24,774 if money is worth 8% compounded…
A: Present value (PV) = Php 20,690 Accumulated amount (FV) = Php 24,774 Quarterly period = n Interest…
Q: Joshua Industries is considering a new project with revenue of $478,000 for the indefinite future.…
A: Adjusted present value means that we have to determine the NPV (net present value) of a project in…
Q: How much will $10,000 grow to in 3 years, assuming an interest rate of 9% compounded quarterly? What…
A: As you have asked a multiple subpart question, we will answer the first three subparts for you. To…
Q: Todd Payne, the company’s operations manager, believes that the money should be used to expand the…
A: Net Present value Present value index
Q: ako sa sunour busa buong p ly Determine your monthly mortgage payment (in dollars). (Round your…
A: Loan Payments: These payments are made by the borrower to the lender to amortize the loan amount.…
Q: 34. Thirty-year Treasury bonds typically have a higher yield to maturity than two-year Treasury…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: A.) Calculate the coefficient of variation for Project A (Format: 1.1111) B.) Calculate the…
A: Solution:- Coefficient of Variation (CV) measures that how much times is the risk in comparison to…
Q: Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for…
A: Payback period refers to the period within which the sum invested by the company in a project will…
Q: Tannen Industries is considering an expansion. The necessary equipment would be purchased for $16…
A: Equipment purchased = $16,000,000 Net working capital = $1 million Tax rate = 25%
Q: O The NPV and IRR methods, when used to evaluate two independent and equally risky projects, will…
A: Net present value is defined as the difference between the PV of cash flows that are inflows and…
Q: A project requires an initial outlay at t = 0 of $4,000, and its cash flows are the same in Years 1…
A: Weighted Average cost of capital (WACC): The WACC is the overall cost of capital from all the…
Q: that currently has 100 units of capital, and their desired level a epreciation rate is 10%, how much…
A: For a company units of capital is an essential input factor. Units of capital along with labor are…
Q: The PC shop obtains a loan from a finance company. It is to be repaid by quarterly payments of PHP…
A: Quarterly payment (P) = PHP 50,000 First payment period = 2 Years First payment period in quarters…
Q: You borrow $364000 for the the purchase of a house at an APR of 7.52% for 15 years. Your monthly…
A: A mortgage is a loan on a property for which the property itself is the collateral.
Q: a. What is the company’s total book value of debt? (Enter your answer in dollars, not millions of…
A: Cost of debt (yield to maturity) refers to the total return generated by a bond until it matures.…
Q: bank discount and proceeds for these notes. Assume that the notes were discounted on June 10 at a…
A: Notes are issued by the banks on discount and the customer have to pay the face value on the…
Q: Suppose that a firm has 700,000 outstanding shares, each valued at Php 141. Suppose further that the…
A: Total number of shares outstanding is 700,000 Value of share is Php 141 Replacement cost of physical…
Q: all uranium mine started producing 1000 tpa of U3O8.The market price of uranium was US$30 and it…
A: A foreign exchange gain and loss, is the consequence of a shift in the currency rate used when an…
Q: mutual fund has an offer price of $14.06. If you invested a lump sum of $14,000, how many shares did…
A: Offer price = $14.06 Investment = $14000
Q: Beta is a measure of? Risk in a well diversified portfolio Systematic risk The extent to which the…
A: Beta is measure of stocks movement or volatility in respect to market. Stocks with higher beta are…
Q: When a business makes an investment, it is expecting a Stream of costs O Stream of profits O Capital…
A: As per Bartleby guidelines, If multiple questions are posted , only first 1 question will be…
Q: Kobe Ltd recently sold 15 million shares in an IPO. The offering price was Sh.25.50, and the…
A: Floatation costs are costs incurred by a company while issuing new equity. These are expressed as a…
Q: Mackenzie Company has a price of $33 and will issue a dividend of $2.00 next year. It has a beta of…
A: Given, (Part a)The cost of capital,=Risk-free rate+Beta×Market (risk) premium…
Q: Case A B C D E Amount of Annuity $2,500 500 30,000 11,500 6,000 Interest Rate 8% 12 20 9 14 Deposit…
A: Ordinary annuity is the annuity in which regular payment has been made at the end of each period…
Q: ncial fu
A: Futures are a sort of financial derivative in which one party contracts with another to buy or sell…
Q: A Large pizza at Brismarcks’s pizzeria cost$6.80 plus $0.90 for each topping.The cost of a large…
A: Solution:- In order to find out the number of toppings, the total cost of pizza from both the pizza…
Q: Woland National Bank purchases a three-year interest rate cap for a fee of 2 percent of notional…
A: LIBOR refers to the London Interbank Offered Rate. It is the interest rate at which the banks lend…
Q: Raymund just won the lottery. He can get his prize either in the form of $40,000 at the end of each…
A: Prize money at the end of each year us $40,000 Single amount paid immediately is $500,000 Interest…
Q: Based on the following information, compute the (1) current ratio and (2) working capital. (Round…
A: Current ratio = Current assets/Current liabilities Working capital= Current assets - Current…
You are offered a job that pays $37,000 during the first year with an annual increase of 9% per year beginning in the second year. That is, beginning in year 2, your salary will be 1.09 times what it was in the previous year. What can you expect to earn in your fourth year on the job?
Round your answer to the nearest dollar.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Now assume that it is several years later. The brothers are concerned about the firm’s current credit terms of net 30, which means that contractors buying building products from the firm are not offered a discount and are supposed to pay the full amount in 30 days. Gross sales are now running $1,000,000 a year, and 80% (by dollar volume) of the firm’s paying customers generally pay the full amount on Day 30; the other 20% pay, on average, on Day 40. Of the firm’s gross sales, 2% ends up as bad-debt losses. The brothers are now considering a change in the firm’s credit policy. The change would entail: (1) changing the credit terms to 2/10, net 20, (2) employing stricter credit standards before granting credit, and (3) enforcing collections with greater vigor than in the past. Thus, cash customers and those paying within 10 days would receive a 2% discount, but all others would have to pay the full amount after only 20 days. The brothers believe the discount would both attract additional customers and encourage some existing customers to purchase more from the firm—after all, the discount amounts to a price reduction. Of course, these customers would take the discount and hence would pay in only 10 days. The net expected result is for sales to increase to $1,100,000; for 60% of the paying customers to take the discount and pay on the 10th day; for 30% to pay the full amount on Day 20; for 10% to pay late on Day 30; and for bad-debt losses to fall from 2% to 1% of gross sales. The firm’s operating cost ratio will remain unchanged at 75%, and its cost of carrying receivables will remain unchanged at 12%. To begin the analysis, describe the four variables that make up a firm’s credit policy and explain how each of them affects sales and collections.Salaries Suppose you are offered two identical jobs,job 1 paying a starting salary of $20,000 with yearlyraises of $1000 at the end of each year and job 2 paying a starting salary of $18,000 with yearly increasesof $1600 at the end of each year.a. Which job will pay more in the fifth year on the job?b. Which job will pay more over the first 5 years?An investment firm has a job opening with a salary of N45,000 for the first year. Suppose that during the next 39 years, there is a 5% raise each year. Find the total compensation over the 40-year period.
- You are considering a job that offers a starting bonus of $2,500, paid immediately, and an annual salary of $44,000, $47,000, and $50,000 for each of the next 3 years, respectively. One year the offer expires, you will receive a gratuity of $20,000. The annual salary is paid at the end of each year. What is this offer worth today at a discount rate of 5.6 percent?Ms. Adams has received a job offer as an administrative assistant. Her base salary will be $50,000. She will receive her first annual salary payment one year from the day she begins to work. In addition, she will get an immediate $10,000 bonus for joining the company. Her salary will grow at 4 percent each year and each year she will receive a bonus equal to 10% of her salary. Ms. Adams is expected to work for 30 years. What is the present value of the offer if the appropriate discount rate is 10% (EAR)?The president of a growing engineering firm wishes to give each of 20 employees a holiday bonus. How much needs to be deposited each monthfor a year at a 12% nominal rate, compounded monthly, so that each employee will receive a $2,500 bonus? a. $2,070 b. $3,840 c. $3,940 d. $4,170.
- You have just entered a two-year part-time Executive MBA. The tuition fee is $15,000 per year payable at the beginning of each year. Before the program you eamed $40, 000 per year. Your expected salary after graduation. is $55, 000 per year. You can invest your money at 8%. Assume that you will work for 30 years after graduation. The salary differential of $15,000 will continue through this period. How much is your EMBA worth?Suppose that you are offered a job for three years, with the following three possible payment options, from which you can choose (all other conditions are equal): Option 1: You are offered $500 for the first month, and each month after you’ll receive an additional amount that increases $50 a month. That is, you’ll receive $500 + $50 = $550 for the second month, and $550 + 100 = $650 for the third month, and $650 + $150 = $800 for the fourth month, etc. Option 2: You are offered $1000 for the first month, and $100 additional dollars each month after. That is, you’ll receive $1100 for the second month, $1200 for the third month, etc. Option 3: You are offered one cent for the first month, and your payment will be doubled each month. That is, you’ll receive 2 cents for the second month, 4 cents for third month, 8 cents for the fourth month, and 16 cents for the fifth month, etc. Construct a table for monthly payments for three years for each of the three options. Make a…A mechanical contractor has four employees whose combined salaries through the end of this year are $250,000. If he expects to give an average raise of 5% each year, calculate the present worth of the employees’ salaries over the next 5 years. Let i = 12% per year.
- You expect to start working three years from today, and to work for 30 years thereafter. In years 4 through 13 (i.e years 1 through 10 of your working career) your salary will be $55,000. In year 14, your salary will increase by $5,000 and continue at this new level through the end of year 18. In year 19, your salary will increase by a further 20%. It will remain at this new level for the rest of your working life. Assume that you expect to live 30 yeas following the date of your retirement, and that the appropriate discount rate is 8%, compounded annually. Further assume that all income is received at the end of each year. Suppose that you wish to spend an equal amount in each of the next 33 years, and that your annual retirement will be 20% lower than our spending in the first 33 years. How much will you be able to spend in each of the first 33 years, and in each of your retirement? (Assume that your entire spending takes place at the beginning of each year).Engineering Economics An employee was promised by his boss that he will have a salary of P300,000 on his first month and will be increased by 31.6% on the succeeding months. What will be his total salary for one year if interest is 24% compounded annually.Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you received your salary of $53,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next year. You have decided that one year from today you will begin depositing 10 percent of your annual salary in an account that will earn 9.3 percent per year. Your salary will increase at 2 percent per year throughout your career. How much money will you have on the date of your retirement 35 years from today?