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Hi, this is already a repost. Pls answer item 3. Thank you.
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- Harley worked for many years to save enough money to start his own residential landscape design business. The net cash flows shown are those he recorded for the first 6 years as his own boss. Find the external rate of return using the modified rate of return approach with a reinvestment rate of 15% per year and a borrowing rate of 8%. Additionally, after using the procedure, use the MIRR function to confirm your answer. Year 0 1 NCF, $ -9,000 4,100 2 -4,000 The external rate of return is 3 -7,000 % per year. The spreadsheet function is =RATE(6,-17986,,25972) 4 5 12,000 700 6 1,050suppose that you have started a manufacturing/Service Organization in Abu Dhabi UAE with a capital of $250000 1-you need to assume cash flows with assumed discounted rate for five years and calculate the NPV of the project. 2- Find out the BEP (Break Even Point) of your business and take necessary actions on the basis of your results.Assume that after completion of your MBA you have started working as a financial planner at Askari Capital Limited. In a second week of Job you have got assignment to invest Rupees 100,000 for a client. Because the funds are to be invested in a business at the end of 1 year, you have been instructed to plan for a 1-year holding period. Moreover, your manager has restricted you to the investment alternatives in the following table, shown with their probabilities and associated outcomes. (For now, disregard the items at the bottom of the data; you will fill in the blanks later.) Estimated rate of returns State of the Probability T-Bills Nescom Nawab PK_Steel Pak Market portfolio Recession 0.1 3% -14.25 12.25 1.75 -9.75 Below average 0.2 3% -4.75 5.25 -8.25 -2.75 Average 0.4 3% 6.25 -0.5 0.25 3.75 Above average 0.2 3% 13.75 -2.5 19.25 11.25 Boom 0.1 3% 21.25 -10 11.75…
- Participation #5: Think about the cash flows associated with putting in the bank for five years, assuming you draw out the interest each year and then close the account. Now think about a set of hypothetical cash flows associated with putting the same money in a business, operating for five years, and then selling out. Write an explanation of why the IRR on the business project is like the bank’s interest rate. How are the investments different?Assume that after completion of your MBA you have started working as a financial planner at Askari Capital Limited. In a second week of Job you have got assignment to invest Rupees 100,000 for a client. Because the funds are to be invested in a business at the end of 1 year, you have been instructed to plan for a 1-year holding period. Moreover, your manager has restricted you to the investment alternatives in the following table, shown with their probabilities and associated outcomes. (For now, disregard the items at the bottom of the data; you will fill in the blanks later.) Estimated rate of returns State of the Probability T-Bills Nescom Nawab PK_Steel Pak Market portfolio Recession 0.1 3% -14.25 12.25 1.75 -9.75 Below average 0.2 3% -4.75 5.25 -8.25 -2.75 Average 0.4 3% 6.25 -0.5 0.25 3.75 Above average 0.2 3% 13.75 -2.5 19.25 11.25 Boom 0.1 3% 21.25 -10 11.75…suppose that you have started a manufacturing/Service Organization in Abu Dhabi UAE with a capital of $200,000-$800,000. You are free to assume/invest within the range of $200,000 - $800,000, depending on the size of the business. 1-you need to assume cash flows with assumed discounted rate for five years and calculate the NPV of the project. 2- Find out the BEP (Break Even Point) of your business and take necessary actions on the basis of your results.
- WORKSHEET # 2 Direction/s: Answer the following problems. Show your complete solutions.\ 1. Find the compound amount Php9,500 is invested for 7 years and 5 months at 6% compounded semi-annually. 2. Zeus invested Php45,000 in the stock market which guaranteed an interest of Php9,200 after one and a half years. What is the rate of his investment? 3. If you borrowed Php50,000 from a bank charging 11% simple interest, how would you pay at the end of 18 months? 4. Sara invested an amount at 8% interest compounded quarterly. After 5 years, her investment became Php80,000. How much interest did she eamed in her investment? 5. Brad invested Php 75,000 in a bank and earned Php17,800 at 7% interest compounded quarterly. How long did he invested his money?Gordon has a goal of purchasing a new second hand car valued at approximately $14,000 financed from the returns generated on his investments over the next 12 months. He currently has approximately $150,000 available for investment and wishes to select any one of the following alternative investments in order to realise his goal: Expected Income return (% p.a.) Details 1 year unsecured bank note 10 1 bedroom rental property 4 Shares in Australian bank 3 Expected Capital return (% p.a.) 0 8 12 Ignore the effects of taxation in your calculations. (a) Calculate the expected amount of income and capital generated by each investment over the next 12 months (b) Rank the investments in the order of their total return (expressed as a dollar amount) from the highest to the lowest2. A manager of a small company secured a $45,000 to buy a new truck that is to be delivered in 61 days. He thought it would be wise to invest this amount in a principal-safe account that yields 8.75% interest, with a brokerage fee of $80? How much would he gain if he did?
- A man with $30,000 to invest decides to diversify his investments by placing $15,000 in an account that earns 6.2% compounded continuously and $15,000 in an account that earns 7.4% compounded annually. Use graphical methods to determine how long it will take for his total investment in the two accounts to grow to $45,000For example, if you a simple average of 5 year of either income or cash flow of:year 1 100year2 100year 3 100year 4 100year 5 100total 500average 100cap rate 0.2value 500 Now you go to the balance sheet as of the valuation date and have a cash balance of $500 and the industry working capital benchmark is $200, is it fair to add $300 to the value of the business? That is really the question. In practice, particularly matrimonial valuations, some practitioners would opine, if the owner sells the business they would realize $500 in value plus $300 in excess working capital for a total value of $800. Remember the value included the $300 ($100 each year), possibly not distributed cash flow/earnings, is that really value?Fill in the blank to answer the below. You invested $20,000 at the beginning of the year. At the end of the year, you received cash flows of $400 from the investment and you cashed out entirely, receiving $21,600. What is your return for the year? %