What is the IRR of the project?

Q: Beginning in​ January, a person plans to deposit ​$1000 at the end of each month into an account…

A: We need to use future value of ordinary annuity formula to calculate interest amount. Future value…

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: A small plant manufactures riding lawn mowers. The plant has fixed costs (leases, insurance, and so…

A: Solution:- Break- even point is the number of units at which the total cost incurred by a firm in…

Q: A project requires a $1 million initial investment, and will yield incremental after-tax cash flows…

A: To calculate the IRR we will use the below formula   IRR = (CF1/P)+g Where CF1 - After tax cash…

Q: What is the minimum (break-even)  $OCF of this project if the required return is  16% per year?

A: Operating Cash Flow: It refers to the amount of cash generated by the business from its normal…

Q: Anderson International Limited is evaluating a project in Erewhon. The project will create the…

A: Required rate of return is 13% To Find: NPV , IRR of the project

Q: for the next 5 years. And after that it is assumed to have a g indefinitely. The dividend paid for…

A: The price of stock can be found from the constant dividend growth model of that depend on the…

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: Use the future value formula to find the indicated value. n = 50; i = 0.02; PMT= $72; FV = ? FV=$…

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: CTY Inc just made a deposit of $1.5 million in an account expected to earn 10.8% APR compounded…

A: Future Value Future value refers to the value of the investment at a certain point of time in future…

Q: You spend $725.00 to purchase a $1,000 bond that will have no coupon payments and matures in 12…

A: For the calculation of interest rate our formula will be as follows:   Interest rate = (Maturity…

Q: In October 2008, six-month (182-day) Treasury bills were issued at a discount of 1.42%. What was the…

A: Treasury bills are short term financial instruments that are issued by the US treasury  with a…

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

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

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: The IRR evaluation method assumes that cash flows from the project are reinvested at the same rate…

A: MIRR refers to modified internal rate of return. MIRR, as a capital budgeting tool, seeks to remove…

Q: ​(Common stock​ valuation)  Assume the​ following:   •   the​ investor's required rate of return is…

A: As per Gorden's Model Growth is calculated with the help of following formula  Growth = Retention…

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: 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: If the marlet interest rates rise to 4.0 percent, the bond price to buy will ____

A: Bond valuation (BV) refers to a method or technique which is used to compute the current value or…

Q: A US government bond in the amount of $1,000 will mature in six years, has no coupon payments, and…

A: To calculate the value of this bond we will use the below formula   Value of bond = FV/(1+r)n Where…

Q: Financial statements are an important element of any organization. Discuss their significance and…

A: Financial statements give a detailed picture of a company's financial situation at a specific period…

Q: explain three CAPM assumptions and their appropriateness for family firms?

A: The  (CAPM) describes the link between systematic risk and expected return on assets, namely stocks.…

Q: Construct the amortization schedule for a $16,000.00 debt that is to be amortized in 12 equal…

A: Amount of Debt is $16,000 Interest rate per half year is 6%  Total number of semi annual payments…

Q: If Exxon uses FIFO for its inventory valuation, calculate the cost of ending inventory and cost of…

A: FIFO stands for First In First Out. Under this method of inventory valuation, the sale of goods…

Q: An investment of $13,335 earns 12% interest compounded monthly for 3 years. (a) What the future…

A: As per the given information: Investment amount - $13,335Interest rate - 12% compounded…

Q: How much will be in the account at the end of 4 years?

A: Time value of money (TVM) refers to the method or technique which is used to measure the amount of…

Q: National Co. wants to construct a bond portfolio consisting of Bulldogs bonds which has a maturity…

A: A bond is a debt instrument that can be issued by companies, firms, and even governments as a means…

Q: You are given the following information. Revenue Current liabilities Days sales in receivable…

A: Here, To Find: Cash amount =?

Q: Discount ₱264,000 for 2. 75 years converted quarterly at 10.64%.

A: The concept of time value of money will be applied here. As per the concept of time value of money…

Q: A 5-year bond with 10% coupon rate and P1000 face value is selling for P1,054.30.  Calculate the…

A: Yield to maturity is referred as the total return, which are anticipated on the bond, when the bond…

Q: Suppose that call options on a stock with strike prices $100 and $106 cost $8 and 55, respectively.…

A: Call options are defined as the financial contracts, which provides the option the purchaser the…

Q: 2) 1) What is its bank discount yield? What is its holding period return? What is its effective…

A: The discount is rate at which T bills are selling below the par value of T bills. It depends on…

Q: ordinary annuity that earns 7.3% compounded monthly has a current balance of $600,000. The owner of…

A: We will apply the required formula for all 3 monthly payments and will calculate the number of…

Q: The Waygate Corporation is interested in contracting out a testing function.Two firms have submitted…

A: The present value analysis can be used to find out the actual value of the project at the beginning…

Q: As an operations management consultant, you have been asked to evaluate a furniture manufacturer's…

A: The question is related to Cash Operating Cycle:- The cash operating cycle (also known as the…

Q: XYZ Corporation invests $450,000 into 91-day treasury bills with an interest rate of 1.54%. If the…

A: Here, Amount invested in Treasury bills = $450,000 Duration = 91 days Interest rate = 1.54% Broker…

Q: The amount of interest earned in 11 years on Php 1,000,000 deposited in an account paying 8%…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: Which of the following projects have conventional cash-flow streams? Select all that are…

A: Solution:- Conventional cash flow stream is that cash flow stream in which the sign of cash flows…

Q: What is the value of a preferred stock where the dividend rate is 15 percent on a ​$100 par​ value,…

A: Value of preferred stock = Preferred dividend / Required rate of return or yield

Q: QUESTION 7 Consider the market for a bond which has a face value of $2,000, pays a coupon of $100,…

A: Solution: Yield to maturity means that the rate of return earned by an investor.

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: Accumulate P25,300 for 7 years at 8% compounded semiannually.

A: FV = P (1+ r/m)^mt Where, FV = future value P = Initial value of Investment  r = Interest Rate m =…

Q: The​ after-tax cost of debt using the​ bond's yield to maturity​ (YTM) is _____​(Round to two…

A: The after tax cost of debt using the RATE function in excel: RATE = (NPER, PMT, PV, FV) where NPER =…

Q: Discuss MM proposition II under the situation when there are corporate taxes and risk-free debt.

A: Corporate tax is defined as the tax on the corporate's tax. Here, taxes used to make the payment on…

Q: A firm's management wants to improve its cash flows with regard to working capital and wants to…

A: Working capital is very important in smooth operations of company and maintain the adequate…

Q: Model A B C D E F G H (3) |(4) Input 546 600 550 790 340 110 (6) (7) Output 500 579 635 587 530 108…

A: Data given: Model Input Output Defect Productivity A 546 500 5 (1) B 600 579 (2) 95% C (3)…

Q: What interest rate was applied for ₱16,400 to earn interest of ₱3,600 invested for 650 days using…

A: Principal Amount (P) = ₱16,400 Interest Amount (I) = ₱3,600 Total Amount Accured (A) = Interest +…

Q: debt financing.

A: Debt financing refers to the amount which is raised by the company after selling the debt…

Q: A company’s sales were $250 million in 2019. If sales grow at 6% per year, how large will they be 10…

A: Growth in sales means every year sales will be increased from its previous level. As the time flows,…

Q: The Black-Scholes model is used to value call options on the stock of National Co. The following…

A: Black Scholes Model is one of the way to value an option, it could be a call or a put option.…