Mariah Lane wants to buy a home entertainment center. Complete with a big-screen TV and sound system, the unit would cost $4,500. Mariah has over $15,000 in a money fund, so she can easily afford to pay cash for the whole thing (the fund is currently paying 5 percent interest, and Mariah expects that yield to hold for the foreseeable future). To stimulate sales, the dealer is offering to finance the full cost of the unit with a 36-month installment loan at 5 percent, simple. (Note: Assume Mariah is in the 24 percent tax bracket and does not itemize deductions on her tax returns.)   Should she pay cash for the home entertainment center or buy it on time?   Rework the problem, assuming that Mariah has the option of using a 48-month, 6 percent home equity loan to finance the full cost of this entertainment center. Again, use Worksheet 7.2 to determine if Mariah should pay cash or buy on time. Does your answer change from the one you came up with in part (a)?

After careful comparison shopping, Noah Griffin decides to buy a new Toyota Camry. With some options added, the car has a price of $23,610 - including plates and taxes. Because he can't afford to pay cash for the car, he will use some savings and his old car as a trade-in to put down $7,610. Noah plans to finance the rest with a $16,000, 60-month loan at a simple interest rate of 5 percent.   What will his monthly payments be? Round the answer to the nearest cent. $   per month How much total interest will Noah pay in the first year of the loan? Round the answer to the nearest cent. (Use a monthly payment analysis procedure similar to the one in Exhibit 7.7.) $   How much interest will Noah pay over the full (60-month) life of the loan? Round the answer to the nearest cent. $   What is the APR on this loan? Round the answer to 2 decimal places. %

Which of the following is an exception for application of IFRS 15? a. Insurance contracts. b. Financial audit contracts. c. Pharmaceutical contracts. O d. Service contracts.

Murad is considering starting a small catering business. He would need to purchase a delivery van and various equipment costing $62,500 to equip the business and another $30,000 for working capital needs. Rent for the building used by the business will be $17,500 per year. In addition to the building rent, annual cash outflow for operating costs will amount to $20,000. Murads marketing studies indicate that the annual cash inflow from the business will amount to $60,000. All of working capital would be released at the end of 7 years. Murad wants to operate the catering business for only seven years. He estimates that the equipment could be sold at that time for 5% of its original cost. Murad uses a 13% discount rate. Use the following present value tables, to determine the appropriate discount factor(s) Present Value of $1; 1 (1 +r) Periods S% 9% 10% 11% 16% 17% 0.572 0.5520.534 0.497 0.476 0.456 0.630 0.596 0.564 0.535 0.507 0.480 0.456 0.432 | 0.410 0.390 12% 13% 14% 15% 0.735 0.708…

6) Susan is looking to purchase her first home five years from today. The house costs $1,550,000. She will have to make a down payment of 10% of this amount and plans to take a loan from the bank for the difference. Bank charges are approximately 15% of the loan amount. She plans to start saving from today to cover both the down payment and the bank charges. a. How much will she need to save to cover both the down payment and bank charges? b. If she currently has $195,000 in her account and will make no further deposits over the next five years, what rate of interest must she earn on this account in order to achieve the savings target calculated in part (a) above?

Calculate the maximum pre-tax loan interest rate that they can be charged and still justify investing in the project.

Your friend in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture ​$700. ​However, once​ built, the machine will last forever and will require no maintenance. The machine can be built​ immediately, but it will cost ​$7,000 to build. Your friend wants to know if he should invest the money to construct it. If the interest rate is 13.0% per​ year, what should your friend​ do?       Question content area bottom Part 1 The NPV of the machine is ​$enter your response here. ​(Round to the nearest​ cent.)                           Part 2 What should your friend​ do? ​(Select the best choice​ below.)     A. Accept the machine because the NPV is equal to or less than​ $0.   B. Reject the machine because the NPV is equal to or greater than​ $0.   C.Reject the machine because the NPV is less than $ 0. Reject the machine because the NPV is less than $0.   D.Accept the machine because…

Please Show me the calculations!!   A real estate investor is considering the purchase of an apartment building that currently provides income of $30,000 and is expected to grow in income by 3% for the next 4 years. You would receive income from today, year 0, through year 4. At the end of year 4, they expect to sell the property for $800,000. The investor has a discount rateof 6%. How much should an investor be willing to pay for this property?

Charlie is planning to buy a small apartment complex; the complex will cost $1,000,000 and they will generate $450,000 in profits over the next three years. The complex will also need $50,000 in renovations during year 4. Charlie's required rate of return is 17%. What is the NPV on Charlie's investment ___? and should Charlie purchase the apartments___? yes or no

Mike is considering quitting his job to start a bakery, his dream work. To do so, he would need to make an investment of $80,000 today. He estimates that the bakery would generate revenues of $90,000 over the next five years and would require $20,000 in expenses. At his current job he earns $50,000. Therefore, Mike estimates that the incremental cash flows from opening the bakery would be $20,000 per year for the next five years. Calculate the NPV of the business using a discount rate of 15%. Should Mike quit his job and start the bakery? Calculate the IRR for the project described in problem 3. If Mike requires a return of 15% on the business, should he start the bakery?