The annual discount rate is 7.70%. a. What is the present value of a perpetuity that pays 2,000 at the end of every other year, starting at year 2 (that is, payments happen at year 2, 4, 6, ...)?

Q: John sells a product for $65 and it cost $30 to produce (UVC) and has fixed cost (FC) of $175,000…

A: Break-Even Point of Sales is that point on which company will recover all cost ( Variable Cost +…

Q: What happened to the dollar following the announcement by the Group of Five that it would be…

A: Plaza Accord in 1985 was an agreement which was made by G-5 countries with the aim of reducing the…

Q: A large retailer obtains merchandise under the credit terms of 3/10, net 30, but routinely takes 60…

A: Every business needs goods and services to be purchased for its business. It can be on cash basis or…

Q: If a person inherited $100,000 and decided to buy stock in a new venture through a private…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A​ U.S.-based multinational company has two​ subsidiaries, one in Mexico​ (local currency,…

A: Effective interest rate : Formula for calculating effective interest rate: Effective interest rate =…

Q: A computer call center is going to replace all of its incandescent lamps with more energy efficient…

A: IRR is the Capital Budgeting techniques which shown the actual rate of return on the project earned…

Q: Cash $ 140.0 Accounts payable $ 800 .0 Accts. receivable 880 .0 Notes payable 600.0 Inventories…

A: The following equations to be used to solved this problem  5. EBITDA Coverage ratio =(EBIT +…

Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…

A: Par Value of Bond is $1000 Coupon rate is 7.5% Yield is 5% Time to maturity is 5 years Bond is sold…

Q: For the nonconventional net cash flow series shown, the ex return per year using the MIRR method,…

A: The MIRR is the modified rate of internal rate which assumes that reinvestment is different from the…

Q: A man is planning to invest for a project with a benefit cost ratio of 1.8 and provides annual…

A: Benefit Cost Ratio is calculated by dividing Projected Cash benefits by the proposed cash total cost…

Q: A3) Finance A property can be purchased in cash or through an equivalent plan, over 20 years,…

A: A mortgage is a type of secured loan used for the maintenance or purchase of the real estate. The…

Q: The real risk-free rate is 2.75%. Inflation is expected to be 3.75% this year, 4.25% next year, and…

A: Given: Particulars Rate Real risk free rate 2.75% Year 1 Inflation 3.75% Year 2 Inflation…

Q: 1. A company is evaluating two projects, A and B. The company's cost of capital has been determined…

A: We have calculated the NPV by taking the future cash flow and discounting them back to the present…

Q: The funds allocated to products and services used to satisfy citizens' needs are classified as…

A: Solution: Government spends money from its treasuries to fulfil various needs for people in economy.

Q: A good way to align the incentives of a CEO with those of shareholders is to make his pay directly…

A: A company's Earning per share is defined as the earnings available to shareholders divided by the…

Q: Given that a​ firm's return on equity is 17 percent and management plans to retain 37 percent of…

A: In finance growth rate of a firm is the maximum growth that an entity can see or can achieve without…

Q: Amber Marbella is planning to invest on a certain project but will be needing of funds, fortunately…

A: The question is related to cost of capital. The cost of equity is calculated with the help of…

Q: Which of the following statements is most correct? Why?* choices: a. The expected return on…

A: Bonds are referred as the security type, where an issuer used to owe the debt holder and also are…

Q: You are the finance manager of Adventure Tourist Ltd. The following data is available for the…

A: 1) The evaluation of the efficiency of the daily movement of cash flows is done through working…

Q: what is the value of the common stock if the investors require a 15 percent rate of​ return?

A: Value of Common Stock: The value of the common stock is primarily derived from the current value to…

Q: 2021 2020 2019 $6618000 $4632000 $2750000 Accounts receivable 1133000 1395000 1020000 Inventory…

A: Answer -  Current Assets -  Current assets are those resources which a company owns and expects to…

Q: If corporate bonds are traded 12% above the government bond rate of 8% and the recovery rate on…

A: A default generally takes place  when the borrower fails to make the required debt payments.…

Q: Explain in detail, in terms of current yield, capital gain yields and YTM, why:  a) If YTM = coupon…

A: Bonds are fixed-income securities that reflect loans from investors to borrowers (typically…

Q: A chain of appliance stores, APP Corporation, purchases inventory with a net price of $700,000 each…

A: Accounts payable are those supplier accounts from whom business has made credit purchases but amount…

Q: World Enterprises is determined to report earnings per share of $2.17. It therefore acquires the…

A: Merger is that term under which two firm are one after merger under merger which firm acquire (…

Q: Data for Henry Company and Mayer Services are given in the following​ table : Item Henry Company…

A: PE ratio is the ratio of that shows how many times of earnings the price is currently trading.  It…

Q: An investor buys a five-year, 7.5% annual coupon bond priced to yield 5%. The investor plans to sell…

A: Par Value of Bond is $1000 Coupon rate is 7.5% Yield is 5% Time to maturity is 5 years Bond is sold…

Q: Given the following: January 1 inventory April 1 June 1 November 1 Cost of ending inventory Number…

A: Solution: Last-in-First-out (LIFO) method of inventory valuation assumes that the amount of goods…

Q: These are involuntary fees levied on individuals or corporations and imposed by the government…

A: Excise taxes are taxes levied on specified goods. These are indirect taxes that the consumer may not…

Q: The factor payment for the use of financial capital (loans and equity investments) is called...…

A: The cost of finance: Equity and debt are two sources of capital for any business.  Investors who…

Q: Venture capital (VC) firms are pools of private capital that typically invest in small, fast-growing…

A: Principal agent relations refer to the connections between an organization and its personnel.…

Q: A brokerage account for the deposit of client funds OA must require the signatures of two officers.…

A: Brokerage account A brokerage account is associated with a licensed brokerage firm. A licensed…

Q: Find the present value of a loan due on January 23, 2012, with a maturity value of ?ℎ? 412,500 and a…

A: Maturity Amount = 412,500 Interest Rate = 7% Time Period = 205 Days

Q: Given above is the historical data of Jollibee Food Corporation's (JFC) stock price. You invested…

A: Number of shares = Total InvestmentMarket Price per share Return on Investment = ( Selling Price -…

Q: 1a. In 1895, the winner of a competition was paid $110. In 2006, the winner's prize was $70,000.…

A: As per Bartleby honor code, when multiple independent questions are asked, the expert is required…

Q: If you buy a computer directly from the manufacturer for $2.634 and agree to repay it in 36 equal…

A: Present Value of Ordinary Annuity refers to the concept which gives out the discounted or today's…

Q: Suppose you believe that  BVC Inc.’s stock price is going to decline from its current level of…

A: Put option is that option under which trader will earn the profit when the share price will decline…

Q: ​Pioneer's preferred stock is selling for ​$40 in the market and pays a ​$4.40 annual dividend.   a.…

A: Value of a preferred stock depends on the dividend amount paid by the stock and the investor’s…

Q: Shawn purchases a retirement annuity that will pay him $1,000 at the end of every six months for the…

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

Q: Compute the NPV for Project M if the appropriate cost of capital is 9 percent. (Negative amount…

A: Net present value (NPV) of an alternative/project refers to the variance between the initial…

Q: It is a tax on the value of an article increased at each stage of its production or distribution.…

A: Excise tax is a type of indirect tax employed in case of specific goods (eg. fuel, tobacco,…

Q: An integrated, combined cycle power plant produces 295 MW of electricity by gasifying coal. capital…

A: Payback period is the time taken by the project to cover its initial investment. It is the time to…

Q: A computer costs $660 in the United States. The same model costs €515 in France. If purchasing power…

A: The purchasing power parity is used to measure the absolute purchasing power of different currencies…

Q: You have a choice of four increasing Annuity A $300 5% 12 Payment Annual Rate Interest Periods Per…

A: To Find: Which annuity reach FV of $100,000 earlier

Q: On September 1, 2010, you decided to put $ 15000 in a money market fund. On March 1, 2015, you…

A: The future value of an investment is the approximate value of buying and holding an investment for a…

Q: A telephone costs $50 in the United States.  Today, in the currency markets you observe the…

A: Based on the information given in the above question we need to convert the price of telephone in…

Q: Automotive Accessories needs to borrow $135,000 for 6 months for renovations. It is considering two…

A: Here, To Find: Part A. Effective annual rate of interest on each loan =? Part B. Decision to reduce…

Q: If euros sell for $1.63 (U.S.) per euro, what should dollars sell for in euros per dollar? Round…

A: The question is related to calculation of euro per dollar Euro per dollar = 1 ÷ dollar per euro

Q: How much are you willing to pay for a bond with $1,000 face value and an 7% coupon rate with 2 years…

A: The price of a bond today is the sum total of all future payments receivable in the form of coupon…

Q: Information below is related to Jea Maggie Ison’s Company Return on Sale              15% Asset…

A: The question is related to the Ratio Analysis. The return on Equity ia calculation as per Du point…

Present Value

Present value (PV) is defined as the current or present value of all future sums of cash flow or money at a specified rate of return. This rate of return is known as the discounted rate, which is essentially the interest rate, discounted over some time. The expected cash flows are discounted at a discount rate to compute the present value. The higher the discount rate, the higher the future value (FV), but the lower the present value.