Assume a high demand for the product and by-products that all produced goods are sold each year within the study period. Calculate the following: Internal Rate of Return Based on the computed values, decide whether the project is economically justifiable or not.
Q: Pirates Inc. just paid a $2.00 dividend. Their expected dividends are $1.75 in year 1, $1.50 in year…
A: The dividends are the distribution of profit to the shareholders, the company issue ordinary stock…
Q: K A property was purchased for $9198.00 down and payments of $900 00 at the end of every three…
A: Numbers are illegible. Please check the numbers Data given: Down payment= $9198 Quarterly payment…
Q: Nikita Enterprises has bonds on the market making annual payments, with seven years to maturity, a…
A: A Bond refers to a concept that is defined as an instrument that represents the loan being made by…
Q: Construct NPV profiles for Plans A and B. Enter your answers in millions. For example, an answer of…
A: We will use the concept of capital budgeting in this case. The tools of NPV and IRR will be used…
Q: Thiewes Corp has an expected dividend of $ . 1 75, k 13 percent, and g 7 percent. Based on the…
A: Constant growth Model calculates the price now when the expected cash flow or dividend for the next…
Q: A few years ago a couple purchased an office space by financing RA for n years, paying installment…
A: Present value of annuity Annuity is a series of equal periodic payments at equal interval over a…
Q: Suppose you have purchased some GameStop shares on margin at $5 per share. You ask your broker to…
A: A long position has been taken on margin. The broker has put a stop loss and limit sell order. We…
Q: How much must a corporation deposit in a bank which credits interest at 12% compounded monthly to…
A: Information Provided: Interest rate = 12% compounded monthly Period = 8 years Future value =…
Q: A young engineering company is a subcontractor in an effort to develop technology that will reliably…
A: A bond is bought and held till maturity. We have to find the effective annual rate of return for the…
Q: Supposing the return from an investment has the following probability distribution Return…
A: Expected return: The entire amount of money an investor anticipates making or losing on a specific…
Q: Sarah Allen is 20 years old and plans to make the following investments beginning next year. She…
A: Future value The value of the investment after a specified period of time in the future at a…
Q: Kawesha Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon,…
A: Information Provided: Kawesha Corporation Coupon rate = 9% Kawesha Corporation YTM rate = 7%…
Q: 8. If he sticks to this plan, Ito's savings will have grown to approximately. A) $116,723 B)…
A: Future value The current value of an investment in the future is called future value. Identifying…
Q: An 11-year maturity zero-coupon bond selling at a yield to maturity of 5.75% (effective annual…
A: Bond price is the sum of interest payments and maturity value discounted at yeild to maturity Bond…
Q: This morning a corporate bond of Carnival Corp Inc was being traded at par of $1,000. By midday, the…
A: To calculate the bond price we will use the below formula Bond price = FV/(1+r)n Where FV - Face…
Q: Consider a market where the assumptions behind the Black-Scholes model hold. A non-dividend paying…
A: The Black-Scholes Model is a model that was developed for the pricing of European options based on…
Q: Current exchange rate (Feb 15, 2018) is .0090 $/Yen. You speculate the exchange rate will be .0087…
A: The currency, which is going to be appreciated, should be short sold. In the given case, the current…
Q: You want to pay off your mortgage on something called an accelerated bi-weekly payment plan. You…
A: Amount of mortgage is $480,000 Time period is 16 years APR is of 2.5% Compounded semi annually To…
Q: The entity received P4,500,000 cash from the issuance of its 9%, 10-year P5,000,000 par value…
A: Par Value = P5,000,000 Time Period = 10 Years Interest (Coupon) Rate = 9% Present Value = P4,500,000
Q: uestion #3
A: Loans are paid by the monthly payments that carry the payment for loan amount and interest amount…
Q: A payday loan is structured to obscure the true interest rate you are paying. For example, in…
A: In a payday loan , for $200 , we need to pay $230 which means we need to calculate rate applied in 2…
Q: e expected return of Project Y is at least equal to the expected return of Project X, and the…
A: There should be optimal combination of risk and return. Return is important but the risk should be…
Q: Perkins, Inc., is considering an investment of $379,000 in an asset with an economic life of 5…
A:
Q: Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity:…
A: Price of a bond can be computed using the time value of money concept. Essentially price of a bond…
Q: how much will you pay for a share today?
A: Price of the share means price at which share is currently sold in the market. It is important from…
Q: You expect to receive a payout from a trust fund in 3 years. The payout will be for $11,000. You…
A: Receipt in 3 years (I) = $11,000 Interest rate (r) = 0.065 Future value (FV) = $19,000 Period for…
Q: can you evaluate the portfolio performance ?
A: To ascertain the potential of loss on an asset, loan, or investment, risk assessment is a broad term…
Q: Net foreign investment Net foreign investment and investment Investment National saving and…
A: Demand for loans depends on supply and need in the market. If demand is more interest rate tends to…
Q: The risk free rate is 1.7%, inflation is expected to be 3.5%, a corporate bond has a yield rate of…
A: Return on corporate bond = Risk free rate + Inflation + liquidity premium + default risk premium
Q: How much must a man deposit in a bank that pays 7% compounded annually so that after 10 years he…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: A brand-new car has a list price of ₱850, 000. The car dealer is giving a trade discount of 10% and…
A: Car Price = ₱850,000 Trade discount = 10% Down Payment = 20% Time Period = 5 Years Interest Rate =…
Q: App1 is a company that has a patent right for a new mobile technology that is expected to enable it…
A: Share Price is the sum of all cashflows discounted at a certian discount rate Share Price =…
Q: The beneficiary of a life insurance policy is to receive $2000 a year for 5 years, the first payment…
A: Value of the annuity at the time of the death is calculated as the present value of annuity due…
Q: 4. (a) Suppose you decide to short sell some GameStop shares. Their cur- rent price is $5, and you…
A: As per Bartleby guidelines, If multiple questions are posted, only the first 1 question will be…
Q: Town station is saving money to build a new loading platform. Three years ago they set aside 23,000…
A: Future Value = Present Value * ( 1 + Interest rate) n Interest rate = [ (Future Value/Present…
Q: Charles Wilson borrowed $15,550 from a bank for three years. If the quoted rate (APR) is 7.00…
A: The effective annual rate is the interest rate that an investment provides after the effects of…
Q: Question 8 How much is the proceeds if Mark borrows Php22,735 at 2.85% for 2 years and 5 months? 8…
A: Borrowed amount (PV) = Php 22,735 Interest rate (r) = 2.85% Period (n) = 2.416666666667 Years
Q: ration plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as…
A: The yield to maturity is rate of return realized on the bond by holding the bond till the maturity…
Q: land. What is the levelized cost of holding the asset for the five year period if the annuity factor…
A: Annual level cost is that is uniform over the given period and that is likely to occur over the…
Q: Which of the following bonds is trading at a premium? a two-year bond with a $50,000 face value…
A: a) 1) If coupon rate is greater than Yield to maturity, then bond is trading at Premium 2) If coupon…
Q: The management of Jasper Equipment Company is planning to purchase a new milling machine that will…
A: Annual depreciation on new machine is calculated below Annual depreciation = Cost of new machine -…
Q: Which of the following statements regarding unsystematic risk is accurate
A: Unsystematic Risk: It is the risk related to a particular investment and thus, is also called…
Q: Investment corporation in a matured industry in a corporation in a new industry vs Investment in O…
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: The amount of annuity that is payable for 5 years at 12% compounded monthly is Php25,000. How much…
A: Monthly interest rate (r) = 0.01 (i.e. 0.12 / 12) Value (FV) = Php25,000 Monthly period (n) = 60…
Q: ABC Corporation plans to issue a 9%, 10-year, P5,000,000 face value bonds. It will incur P500,000 as…
A: Yield to maturity is rate of return realized on the bond when bond is held till the maturity period…
Q: A company is considering an investment with the Bollars. The general inflation rate (7) during this…
A: The cash flows are in constant dollars. Constant dollars means that the dollar (or the cash flow)…
Q: Question 10 If the nominal rate in compound interest is 10% compounded semi-annually, what is the…
A: Interest rate = 10% Number of compounding per year = 2
Q: Calculate what $890 would grow to at 7.5% per year compounded daily for 6 years. (Use the Table…
A: To calculate the future value we will use the below formula Future value = PV*(1+(r/m))n*m Where…
Q: The solution is talking about Miller Corporations which i do not know where it is coming from. Does…
A: Given: Given Assumed Years Years to maturity Coupon rate YT M Face value (FV) a 1 13 9%…
Q: Question 14 Find the present value of Php54,000 due in 4 years if money is worth 12% compounded…
A: Future value (FV) = Php 54000 Interest rate (r) = 12% Number of compounding per year (m) = 2 Period…
Assume a high demand for the product and by-products that all produced goods are sold each year within the study
period. Calculate the following:
Based on the computed values, decide whether the project is economically justifiable or not.
Step by step
Solved in 3 steps with 4 images
- Plant Design is a major requirement for you to be able to graduate BS ChE in Batangas State University. Suppose you are a panelist, and you must evaluate if the design is feasible or not. You look at the breakdown of expenses, possible revenues, etc. Here are some important chapters and discussions taken from a certain plant design. Chapter 3: Market Study This plant design, entitled "IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Philippines" considers a 30-year period of study, starting 2021, after finishing its construction by 2020. All projections, and interest rates set by the company shall be evaluated within this 30-year period. The inflation rate shall not be included in the computation and a minimum attractive rate of return is set at 20%. Chapter 4: Products Our company produces ear dropper solution which can be sold for PHP. 125.00 per bottle. Annually, the company can produce 1000 pallets of the product. Each pallet is stacked with 14 layers and each…Plant Design is a major requirement for you to be able to graduate BS ChE in Batangas State University. Supposeyou are a panelist, and you must evaluate if the design is feasible or not. You look at the breakdown of expenses,possible revenues, etc. Here are some important chapters and discussions taken from a certain plant design. This plant design, entitled “IIVSDROP: The First Ear Dropper Solution Manufacturing Plant in the Philippines”considers a 30-year period of study, starting 2021, after finishing its construction by 2020. All projections,and interest rates set by the company shall be evaluated within this 30-year period. The inflation rate shallnot be included in the computation and a minimum attractive rate of return is set at 20%. Our company produces ear dropper solution which can be sold for PHP. 125.00 per bottle. Annually, thecompany can produce 1000 pallets of the product. Each pallet is stacked with 14 layers and each layerconsists of 8 boxes. A box contains 12 bottles…City Bank limited is considering setting up an in-hose fintech lab. How do you think City Bank can try to bring in-house fintech innovation in addition to the lab? write one sentence for each way you specify.
- Below are four cases that you will have to solve using Excel spreadsheets. 3rd Case The company MEGAMAX SA is analyzing two possibilities to expand the market , one of them is to choose to expand the plant to be able to produce a greater number of products, the other option is to diversify production with different new products to take advantage of the facilities that currently owns; The information and projections you have to be able to carry out the analysis to make a decision are the following: PROJECT Initial investment INCOME EXPENSES INCOME Extension $810,000 EXPENSES Diversification $900,000 It is requested: Concept Year 1 cash flows 5. Determine the internal rate of return. 6. Determine the present value. 7. Determine the recovery period. 8. Define which is the most viable project. Year 2 cash flows $1,000,000 $400,000 The discount rate for the project will be 12%, and investors propose a MARR of 28%. $550,000 $600,000 $1,100,000 $900,000 $400,000 $500,000 Year 3 cash flows…Mini Case Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? If you expanded and hired…Question: A well-reputed educational Institute has hired you as a project manager for development of their Online Examination system. Project managers normally prepare several types of cost estimates for most projects. What types of cost estimates will you prepare while managing the cost of this Online Examination system?
- Your firm is considering what to do with the current food distribution platform. The management might upgrade the platform (i.e., upgrading the new food distribution technology) or they can have a vendor construct a new one closer to the headquarters of the firm. What kind of projects are these?Mini Case Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial client base is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these plans in mind, you need to answer for yourself, and potential investors, the following questions: 1. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation? 2. Briefly explain how regulatory agencies and legal…Cost drivers and value chain. Torrance Technology Company (TTC) is developing a new touchscreen smartphone to compete in the cellular phone industry. The company will sell the phones at wholesale prices to cell phone companies, which will in turn sell them in retail stores to the final customer. TTC has undertaken the following activities in its value chain to bring its product to market:A. Perform market research on competing brands Design a prototype of the TTC smartphone Market the new design to cell phone companies Manufacture the TTC smartphone Process orders from cell phone companies Deliver the TTC smartphones to the cell phone companies Provide online assistance to cell phone users for use of the TTC smartphone Make design changes to the smartphone based on customer feedback During the process of product development, production, marketing, distribution, and customer service, TTC has kept track of the following cost drivers: Number of smartphones shipped by TTC Number of…
- Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. a. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? Explain your answer. b. If you…Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 2. If you expanded and hired additional people to help you, might that give rise to agency problems? Explain your answerSuppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography. With these issues in mind, you need to answer for yourself, and potential investors, the following questions. 3. Suppose you need additional capital to expand, and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?