You need $42.000 need to save today 6.500 dollars 7,500 dollars 8.500 dollar years Eastem bank pays 72 aly You will receive a dividend of $140 I save t in the Easter bank. The amount of money that you
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- If you invest $12,000 today, how much will you have in (for further Instructions on future value in Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at l5% D. 19 years at 18%Assume that an investment of 100,000 produces a net cash flow of 60,000 per year for two years. The discount factor for year 1 is 0.89 and for year 2 is 0.80. The NPV is a. 0 b. 6,800 c. 1,400 d. (4,000)How much would you invest today in order to receive $30,000 in each of the following (for further instructions on present 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%
- 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%Brook Corporation’s free cash flow for the current year (FCF0) was $3.00 million. Its investors require a 13% rate of return on (WACC = 13%). What is the estimated value of operations if investors expect FCF to grow at a constant annual rate of (1) −5%, (2) 0%, (3) 5%, or (4) 10%?You saved $25,000.00 and want to diversify your monies. You invest 40% in a Treasury bond for 3 years at 4.25% APR compounded annually You place 35% in a CD at 3.15% APR for 3 years compounded annually 25% you invest in a stock plan that increases 8% the first year, decreases in value by 4% the second year, and increases by 6% the third year. You must show all of your work for each question in order to receive any credit. 1.) How much money will you start with in each account? Show your work below. (Hint: be sure your amounts add to $25,000.00) bond= CD= stock= 2.) What will be the balance for each type of investment at the end of the third year? Be sure to show your work for each investment below. bond- (year 1, 2 , 3)= total balence afer 3 years= cd ( years 1, 2 , 3)= total balence after 3 years= stocks (years 1, 2, 3)= total balence after 3 years= 3.) What is your total gain from all the investments combined? Show your work below. 4.) If you had invested 25% in treasury…
- A firm's current profits are $450,000. These profits are expected to grow indefinitely at a constant annual rate of 3 percent. If the firm's opportunity cost of funds is 6 percent, determine the value of the firm: Instructions: Round your responses to 2 decimal places. a. The instant before it pays out current profits as dividends. $ million b. The instant after it pays out current profits as dividends. $ million's current profits are $900,000. These profits are expected to grow indefinitely at a constant annual rate of 2tunity cost of funds is 4 percent, determine the value of the firm:actions: Enter your responses rounded to one decimal place.instant before it pays out current profits as dividends. millione instant after it pays out current profits as dividends.millionA firm needs $1.2 million in additional funds. These can be borrowed from a commercial bank with a loan at 7 percent for one year or from an insurance company at 9 percent for six years. The tax rate is 30 percent. What will be the firm's earnings under each alternative if earnings before interest and taxes (EBIT) are $415,000? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $ If EBIT will remain $415,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 5 percent? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $ If EBIT will remain $415,000 next year, what will be the firm's earnings under each alternative if short-term interest rates are 13 percent? Round your answers to the nearest dollar. Commercial bank: $ Insurance company: $
- An entrepreneur needs thousand of dollars to launch the global expansion of his software business. I have agreed to lend him the money today (n=0) at an interest rate of 8% compounded quarterly. I required that the loan be repaid in eight annual payments starting at Year 3 with a $10K payment. Subsequent payments will decrease by $1K each year thereafter. (1) What is the present value of the money being borrowed? (2) Convert your Present Value to Annual Payment. Answer: ieff (show in four decimal) = P0Total = A/P0Total =You want to receive $5000 per month for 20 years in real dollars in an account when you retire in 35 years. The first monthly payment to be received 1 month after you retire. The nominal return on your investment is 9.94 percent and the inflation rate is 3.2 percent. What is the real amount you must deposit each year for 35 years to achieve your goal? Pls do using ExcelCash Flow Diagram 1. You are 40 years old and have accumulated $50,000 in your savings account. You can add $100 at the end of each month to your account which pays an annual interest rate of 6% compounded monthly. Will you be able to retire in 20 years? 2. How much should be invested now (at present time) at 8% compound interest per year, in order to receive US$ 1360.5 within 4 years; or what is the present equivalent worth of US$ 1 360.5 to be received four years in the future?