a new restaurant. The initial cost ( investment) is 750 000 TL. The forecasted cash flows that you expect to gain from this restaurant are 150 000 TL every year for 9 years. If the discount rate is %28, calculate the net present value (NPV), and is t
Q: Ms. Lanz takes out a $9,000 loan to buy a used car for her daughter. She gets a 4-year loan at 8.75%...
A: We can calculate the total repayment of the loan by adding the interest amount and principal amount ...
Q: Which of the following is not an advantage of going public
A: Going 'public' means that a privately held company becomes listed after offering an IPO and hence be...
Q: Mansi Inc. is considering a project that has the following cash flow data. What is the project's pay...
A: Cash flow in year 0 (CF0) = - $750 CF1 = $300 CF2 = $325 CF3 = $350
Q: Techiefy Co. wants to launch a new product. It is observed that the fixed cost of the new product is...
A: Given: Revenue function = 5000D-100D^2 Fixed Cost = $35000 Variable cost per unit = $500
Q: Assume that the risk-free rate is 6.00% and the market risk premium is 6.75%. What is the expected ...
A: Given: Risk free rate=6% Market risk premium = 6.75%
Q: Beginning Balances for Quentin's Four Credit Cards Card A Card B Card C Card D Balance $4,134.00 $2,...
A: Amount of Interest paid can be calculated as the difference between the total amount paid through in...
Q: The demand function for FreshFood Exclusive Brand's product is D = 80 - 2p , where D is the number o...
A: D = Number of units p = Price per unit D = 80 - 2p
Q: Suzette invested $934.00 in a 95-day term deposit at 7.19% p.a. Using the future value formula, S= P...
A: Invested amount (P) = $934 Period (t) = 95 days = 95/365 = 0.26027397260274 Years Interest rate (r) ...
Q: Mylan Pharm is investing in a new cancer treatment gene therapy. They have projected the cost of fin...
A: NPV means PV of all the benefits which will arise from the project. NPV is computed by taking the di...
Q: What is the monthly payment on a loan of $5,000 at APR = 6% for 3 years
A: Monthly payment can be calculated by loan amount divided by present value factor of an ordinary annu...
Q: 2. The Nedtran family decides to save money for a vacation in 3 years. They purchase an annuity with...
A: Semiannual payment (A) = P 10000 Interest rate = 9% compounded quarterly n = 3 years = 6 payments Le...
Q: Sharon Bohnette owns 1,300 shares of Northern Chime Company. There are six seats on the board of dir...
A: Voting for the seats on the board of directors can be done using the traditional method or the cumul...
Q: Inflation, recession, and high interest rates are economic events which are characterized as: A. Com...
A: Risk is defined as the term in which is the chance that actual returns differ from what is expected ...
Q: Say you own an asset that had a total return last year of 17 percent. Assume the inflation rate last...
A: The inflation rate refers to the rate at which the value of the currency decreases over time and the...
Q: Spot USDJPY is trading at 113.15 and the 3 month forward points are -22. The exchange rate for the l...
A: Given: Spot USDJPY rate = 113.15 3-month forward points = -22
Q: The following information showed: State of the Economy Probability of the Sta...
A: Expected return =summation of returns ×probabilities =(13%×20%)+(10%×55%)+(5%×25%) = 9.35%
Q: Explain a flat yield curve using the segmented market theory.
A: Mаrket segmentаtiоn theоry is а theоry thаt lоng аnd shоrt-term interest rаtes аre nоt ...
Q: Find the rate of markdown and the markdown. Regular Selling Rate of Markdown ? Price Markdown Sale P...
A: Markdown is basically reduction in the initial selling price Markdown = Initial / Original selling p...
Q: Bart is a college student who has never invested his funds. He has saved $540 and has decided to in...
A: An initial investment accumulates interest. The future value is the accumulated value of the initial...
Q: a. A retailer buys flowers at ₱1,400 per bouquet. She sells them for ₱2,000 per bouquet. How much is...
A: When the manufacturer sells products to the consumers, he adds a Markup to the cost price and then f...
Q: Aldo's Shoes bought a shipment of 656 pairs of women's shoes for $25.00 per pair. The store sold 176...
A: Since you have posted a question with multiple sub-parts, thus we will solve first three sub-parts. ...
Q: Compute the following: 1. Warehousing firm Case: Firm has a warehouse in Gurgaon and a firm rents ou...
A: Here, Price in Spot Market (Ps ) is 200 Price in Forward Market (Pf) is 150 Mean is 10000 Standard D...
Q: A logistics firm, Apao Cargo, Inc., is currently manufacturing an item that has a variable cost of 2...
A: Here, Units before adding additional Equipment is 30,000 units Variable Cost before adding Additiona...
Q: Both Bond Bill and Bond Ted have 10.6 percent coupons, make semiannual payments, and are priced at p...
A: We can calculate the current price of the Bond bill and Bond ted then will find the change in the pr...
Q: For a 20-year geometric cash flow progression increasing at 2% per year, the first-year amount is P1...
A:
Q: purchase a home for $280,000. She will use a down payment of 18% and finance the remaining portion a...
A: Monthly payment of loan carry the interest payment and payment for principal payment and the interes...
Q: DEFG Company has an inventory conversion period of 66 days, a receivable conversion period of 35 day...
A: The operating cycle is the time that a firm takes to purchase goods and convert the same into cash b...
Q: A Corporation is planning to loan P20M at an effective interest rate of 10%. The company pays income...
A: Loan amount = P20,000,000 Interest rate = 10% Tax rate = 30%
Q: What is the WACC for Arnold and Rodgers, a law firm using 65% equity with a required return of 15%, ...
A: WACC = [Cost of debt x (1 - tax rate) x Weight of debt] + (Cost of preferred stock x Weight of prefe...
Q: At the beginning of each month, P 200 is deposited into a retirement fund. The fund earns 6% compoun...
A: An annuity is a series of equal payments made or received at regular intervals. When the cash flows ...
Q: An up-and-coming band is releasing their first album on Spotify on 3/4/2022. They make an initial in...
A: An initial investment of $3,200 on 2/28/2022. The first check on 3/4/2022 to be $100 and the check a...
Q: A bond payable in a currency different from that of the country in which it is issued is known as a
A: Junk Bond: It refers to the bond that has a low credit rating given by the rating agency. The ratin...
Q: To finance a vacation in 4 years, Elsie saves $450 at the beginning of every six months in an accoun...
A: Future Value The future value is the amount that will be received at the end of a certain period. Th...
Q: Which of the following statements are true about unsecured bonds? I. Income bonds require interest ...
A: Unsecured bonds are backed by the issuer's "full faith and credit," rather than a specific asset. In...
Q: Determine the exact simple interest on P500,000 invested for the period from January 15,1996 to Octo...
A: The simple interest is the method of calculating interest on investments without considering the tim...
Q: Assume you take a loan of $10,000 with interest of 5%/year compounded yearly. You intend to pay it b...
A: First, determine the monthly payment of the loan using the Excel PMT function where the ‘RATE’ is an...
Q: Carl Hightop, a popular basketball player, has been offered a four-year salary deal. He can either a...
A: Option-A - Lump sum Lump sum payment = $4,800,000 Option-B - Quarterly payments Quarterly paymen...
Q: ou work for the CEO of a new company that plans to manufacture and sell a new product, a watch that...
A: Here ROEL refers to ROE for the leveraged situation while ROEU refers to ROE for the unleveraged sit...
Q: Find the difference between the sums of annuity due and ordinary annuity for the following data: Per...
A: Annuity means a set of finite number of payments which are made in equal time intervals and same in ...
Q: Determine the exact simple interest and future worth of P1,500,000 invested for the period from Marc...
A:
Q: A major property developer is concerned about lack of sales due to local economic conditions. To ens...
A: The effective annual rate of interest is the interest rate actually earned on the amount of loan or ...
Q: Clark borrows P 600,000 at 15% compounded annually agreeing to repay the loan in 15 equal payments. ...
A: Loan amount (PV) = P600,000 Interest rate (r) = 15% Number of payments (n) = 15
Q: $4000 is invested for a period of 5 years at a rate of 8%, compounded every 2 months. What will be t...
A: Future Value The future value is the amount that will be received at the end of a certain period. Th...
Q: If you are calculating the present value of this cash flow under semiannual (twice per year) compoun...
A: Future Value: It represents the value of annual cash flows or the sum of money at a later/future da...
Q: Jacqueline took out a $30,000 student loan with a fixed interest rate to pay for college. Jacqueline...
A: Growth investing is a type of investment style and strategy that aims to increase an investor's mone...
Q: 4. The amount of interest earned on K for one year is 243, while the equivalent amount of discount i...
A: Details of Ques-4: Amount of Interest Earned on K is 243 Amount of Discount on K is 225
Q: Why a cashless society increase more private currency
A: A cashless society is one in which transactions, purchase and sale and other commercial transactions...
Q: HighTech Wireless just published its current income statement, which shows net income equal to $240,...
A: Hightech has no debt it means no interest expense. Income before tax = Net income/(1 - tax rate) ...
Q: etirement for 20 years, a self-employed engineer deposits P6,000 every end of 3 months in a fund tha...
A: Given information : Time period (years) 20 Periodic deposits 6000 Payment quarterly Intere...
Q: A man borrowed P400,000 from a lending institution which will be paid after 10 years at an interest ...
A: Compounding is a process where the investor or trader pays interest on interest. In this the interes...
You decide to open a new restaurant. The initial cost ( investment) is 750 000 TL. The
Step by step
Solved in 2 steps with 2 images
- Consider a project in which you have to invest $15,000 today and you will receive $24847 in one year. What is the internal rate of return (IRR) of this project? The IRR is % (Keep 2 decimal places). Answer:The project has a payback period of 3.25 years. If the company's discount rate is 8% find the profabitlity index of the investment. Years Cash Flows 0. = ? HOW DO YOU FIND THIS ? (Can I use a Financial calculator ?) 1. = $200,000 2. = $300,000 3. =$400000 4. = $500,000Suppose a project with a 6% discount rate yields R5000 for the next three years. Annual operating costs amount to R1000 for each year, and the one time initial investment cost is R8000. a. Calculate the Net Present Value (NPV) of this project.b. Calculate the cost-benefit ratio for the project. c. Is the project acceptable? Motivate your answer.
- Consider an investment that cost 100,000 as a cash inflow of 35,000 every year for 4 years required Return is 15% the required. Payback is 3 years. Please use formula. what is the pay back Period Should we accept the investment ? why? What is the NPV? Should we accept investment why? what is the PI? Should we accept investment? why? shoukd we accept the project ? Why?Assume that it costs $1,000 to start a project. If the project will give $400 profit in the first year, $500 in the second year and $300 in the third year. find the payback period. Now assume that the interest rate is 10%, find the net present value (NPV) and the profitability index (PI) for this projectYou are considering a project with an initial cash outlay of $80,000 and expected free cash flows of $20,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. What is the payback period of the project? What is the project’s NPV? What is the project’s IRR? If your firm has a required payback of 2 years and passing the IRR and NPV, would you accept this project? Explain.
- You are considering the investment of $111,000 (today) in a lemonade stand. Also, you expect the stand to generate the following future cash flows: • At the end of year 1: $0 • At the end of year 2: $0 • At the end of year 3: $0 • At the end of year 4: $178,000 What is the IRR (Internal Rate of Return) of this project? (Answer to the nearest 0.01%)You are considering opening a new plant. The plant will cost $100.0 million upfront. After that, it is expected to produce profits of $30.0 million at the end of every year. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 8.0%. Should you make the investment? Calculate the IRR. Use the IRR to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.You are considering a project with an initial cash outlay of $100,000 and expected free cash flows of $25,000 at the end of each year for 6 years. The required rate of return for this project is 10 percent. What is the project’s payback period? What is the project’s NPV ? What is the project’s PI ? What is the project’s IRR ?
- You are considering investing in a project that will cost $210,000. The net annual cash flows from the project are projected to be $62,000 per year for the next five years. You as an investor require a rate of return of 9% on all of your investments. Using the above information, solve for the following: What is the initial cash outflow? Using the payback period method, how many years will it take to recapture the initial cost of the investment? Using the net present value method (NPV), what is the net present value of this project? What is the profitability index (PI) of this project?You are considering opening a new plant. The plant will cost $100.7 million upfront and will take one year to build. After that, it is expected to produce profits of $28.6 million at the end of every year of production. The cash flows are expected to last forever. Calculate the NPV of this investment opportunity if your cost of capital is 6.3%. Should you make the investment? Calculate the IRR. Does the IRR rule agree with the NPV rule? Here is the cash flow timeline for this problem: Years 0 2 + 28.6 3 28.6 4 + 28.6 Cash Flow ($ million) - 100.7 Calculate the NPV of this investment opportunity if your cost of capital is 6.3%. The NPV of this investment opportunity is $ million. (Round to two decimal places.) Forever 28.6You are considering opening a new plant. The plant will cost $96 million upfront. After that, it is expected to produce constant profits at the end of every year (the first profits arrive at t=1). The cash flows are expected to last forever. The discount rate is 7%. At what profits amount would you breakeven in the plant investment?