What is the relation between the present value of an investment and time and interest rate?

Q: M4

A: Information ratio = Return of portfolio-Return of benchmarkTracking errorTracking error = Risk of po...

Q: . In order for Linda to reach her saving goal. How much will Linda need to save each money b. Overal...

A: Future Value of Annuity: It represents the future value of the present annuity cash flow stream. It...

Q: P= P1,000 r= 5% t=5 years m=2 What is the present value of an annuity due?

A: Payment (P) = P 1000 r = 5%, m = 2, hence semiannual compounding Effective interest rate (r) = (1 + ...

Q: ear-to-date, Oracle had earned a −1.34 percent return. During the same time period, Valero Energy ea...

A: Given that Oracle return=-1.34% Oracle Weight=30%=0.3 Valero Energy return= 7.96% Valero Energy weig...

Q: 4. A man paid 10 % as down payment of P200,000.00 for a house and lot and agreed to pay the balance ...

A: As per our guidelines we are supposed to answer only one question (if there are multiple questions a...

Q: 16. Lancaster Corp is considering two equally risky, mutually exclusive projects, both of which have...

A: IRR of project A = 11% IRR of project B = 14% Crossover rate = 8%

Q: A. Which of the following is most closely associated with the cost of using assets? a. Asset utiliz...

A: A. The ratio of total sales or revenue to average assets is known as asset turnover. The asset turno...

Q: Assume that a bond will make payments every six months as shown on the following timeline (using six...

A: Assuming that the bond has been issued and is being redeemed at par itself. Coupon rate is the rate ...

Q: A new electric saw for cutting small pieces of lumber in a furniture manufacturing plant  has a cost...

A: Modified Accelerated cost recovery system (MACRS) Modified Accelerated cost recovery system (MACRS) ...

Q: 4800 accumulating to 5994.78 compounded monthly for 4 years. what is the interest rate?

A: We need to use compound interest formula to calculate interest rate A=P(1+i)n where A=Accumulated am...

Q: I need help explaining the graphs, below  please.

A: Cash flow from financing activities: It shows the cash inflow and outflow from a company's financing...

Q: Q7-3. If interest is compounded more than once a year, will the effective interest rate be higher th...

A: Let the nominal interest rate = r Compounding frequency = m

Q: B. He has decided he wants to save $1,000,000 before he retires. If he saves for 30 years, earning 6...

A: Future value (FV) = $1,000,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =...

Q: A quoted rate of interest is a “nominal” rate because it includes inflation expectations. a) True ...

A: Answer:-   True. The nominal interest rate comprises of the real interest rate and a premium for inf...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...

Q: what is a contract

A: A Contract A contract is an agreement between at least two parties or more that generates enforceab...

Q: You want to create an endowment income of $35,000 per year for Oxfordshire Charity, bit the first pa...

A: The amount that should be invested today is the present value of all future endowment payments. Sinc...

Q: One of your Taiwanese suppliers has bid on a new line of molded plastic parts that is currently bein...

A: NPV It provides the net present value or worth of an investment. If NPV is calculated considering al...

Q: 6. Hart Corp is considering a project that has the following cash flow data. What is the project's I...

A: Given: Year Cash flows 0 -$1,000 1 $425 2 $425 3 $425

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out ...

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To Find...

Q: A concrete pavement on a street would cost P2M and would last for 5 years. Minor maintenance cost is...

A:      

Q: Question 1 How much will an investor pay for a preferred stock that pays a $0.50 per share dividend ...

A: Dividend receivable = $ 0.50Required rate of return = 11.5% Formula = Dividend/ Required rate of ret...

Q: A project starts with an initial capital outflow of RM450,000 in exchange for the following likely c...

A:

Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...

A: In finance we often use the average collection period as one of the financial metrics.  This metric ...

Q: Find the value of an ordinary annuity if payments are made in the amount of R and interest is compou...

A: The value of annuity can be calculated with the help of future value function

Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum retur...

A: Present Value of bond is not given, so considering 1000 as face value of bond. So, Present Value bon...

Q: The display cases above were purchased at the beginning of the month and are being depreciated at a ...

A: A financial plan is a forecast of a company's cash flows over a set period of time  that is weekly, ...

Q: ​Often, through​ government-supported programs, students may obtain​ "bargain" interest rates such a...

A: Installment payment has two components as first interest amount and second principal amount utilized...

Q: certificates of deposit (CDs), earn interest compounded each day or even more frequently, such as ev...

A: Future value includes the amount deposited and the compound interest accumulated over the period of ...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words

A: Step 1 It takes time for the Working Capital Cycle (WCC) to turn all current assets (such as shares ...

Q: Question 20 An analyst estimates that project C's expected rate of returm is 10%, your required rate...

A: To analyse a project, the expected rate of return and required rate of return are compared. if the e...

Q: 17. You are considering two mutually exclusive, equally risky projects. Both have IRRS that exceed t...

A: Before investing in a new project or assets, profitability of the project is evaluated by using vari...

Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make...

A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount

Q: Bank Balance Sheet Assets Liabilities and Equity Reserves $20,000 Deposits $100,000 Loans 95,000 Deb...

A: When the total debt is divided by the total equity the outcome is known as the equity multiplier. It...

Q: Rank the following three stocks by their level of total risk, highest to lowest. Rail Haul has an av...

A: Risk can be compared on the basis of coefficient of variation. Higher the coefficient of variation, ...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Initial Investment is $100million Net Working Capital is $20 million out of $100million Cost of mach...

Q: Student A wishes to invest in cryptocurrency, how long will it take to double his investment when he...

A:  Future Value refers to the value of the current asset or investment or of cash flows at a specified...

Q: In the Wall Bricks, Inc.’s balance sheet lists net fixed asset as $12 million. The fixed assets coul...

A: SOLUTION : Book Value of Net Fixed Assets as per Balance sheet = $12 million - Book Value of Current...

Q: Mr. Cruz deposited P150,000.00 now, so that his 2 years old daughter will receive 5 equal amounts of...

A: Deposit (P) = P150,000 Interest rate (i) = 12% Period (T) = 15 Years Number of payments (N) = 5

Q: Blossom Manufacturing Company has been growing at a rate of 6 percent for the past two years, and th...

A: Data given:: Growth rate (g)= 6% D0= $1.50 Expected dividend (D1) = $1.50 * (1+6%) Required rate of ...

Q: find the size of each 4 payments made at the end of each year into a 9% rate sinking fund which prod...

A: Future value (FV) = 63000 Interest rate (r) = 9% Number of annual payments (n) = 4  

Q: a. Suppose an investor is appraising an investment under the following conditions: Forecast NPV Pi 0...

A: Given: Forecast Pi NPV 1 0.15 $30,000.00 2 0.15 $20,000.00 3 0.5 $15,000.00 4 0.2 $10,000...

Q: elix Jones, a recent engineering graduate, expects a arting salary of $35,000 per year. His future e...

A: Salary grow by fixed percentage that salary is geometric sequence of growing annuity and the present...

Q: What is the standard deviation of the following portfolio? |Weight Correlation(A,B) Growth Rate 3 .2...

A: Standard deviation of a portfolio = WA2σA2+WB2σB2+2*WA*WB*σA*σB*r Where, WA = Weight of stock AWB = ...

Q: You borrow $30,000 for 10 years to pay tuition and fees. The annual interest rate is 12 percent. Wha...

A: Loan Amortization: It refers to the process of paying off the loan in equal periodic payments. Thes...

Q: Yebeng Sdn Bhd operates a very successful chain of shoes shop in Malaysia. The company needs to rais...

A: To Find: Cost of Capital WACC

Q: Given the cash flow diagram below, expressed in months, determine: A. The Present value at a nominal...

A: NPV and IRR both are methods of capital budgeting that are used to make decesion of selecting and re...

Q: Tran has $225.43 left in his FSA. If he does not use the money within the next two months, he will l...

A: FSA (Flexible spending account): A Flexible spending Account could be a special account you place ca...

Q: A) An annuity with a price of $200,000, a term of eight years, and an annual payment of $37,500. Fin...

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...

Q: places.) (a) Wesbanco offers an account 7.28 % interest compounded daily. APY = Number %3D (b) PNC o...

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his inve...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.