You are preparing to produce some goods for sale You will sell them in one year and you will incur costs of $74,000 immediately If your cost of capital is 7 3%, what is the minimum dollar amount you need to sell the goods for in order for this to be a non-negative NPV?
Q: a. Outline the three main forms of business organisation and critically discuss the benefits and…
A: Thanks for Questions “Since you have asked multiple question, we will solve the first question for…
Q: Durr Ham plc currently has 80 million shares outstanding priced at £2 each. A dividend of 10p has…
A: Shares outstanding = 80,000,000 Stock price = £2 Dividend = 0.10 Growth rate = 5% Number of…
Q: find the inventroy turnover for pepsi co. for year 2019, 2020, 2021
A:
Q: Nuka Cola has a beta of 0.85. If the risk-free rate of return is 4% and the expected return on the…
A: Beta = 0.85 Risk free rate of return = 4% Market return = 9%
Q: How many years will it take for $136,000 to grow to $468,000 if it is invested in an account with an…
A: Future Value = Present Value (1 + Interest Rate) Number of years FV =PV (1+r)n Here, Present Value…
Q: direct-financing lease
A: A lease refers to the contract between two parties in which one party gives another the right to use…
Q: EXPLAIN THE ADVANTAGE OF offshore trust?
A: Offshore trust is the planning tool to protect your assets, This trust is created in abroad, It is…
Q: It has been suggested that when applied to the percentage growth rate in a business, the law of…
A: A business, during its initial stages and phases, sees more growth. With passage of time as the size…
Q: Why are banks currently holding capital well above the minimum regulatory requirement?
A: Capital is the main and important ingredient of banks, without capital , we cannot run a bank,…
Q: ex is at £411.79. Find the intrinsic value and the time valı
A: The price of options have two components one is intrinsic value and other is time value of option…
Q: can i get solution with manual formula that i can apply through using my calculator
A: We will use the concept of time value of money here. As per the concept of time value of money the…
Q: Debt Management Ratio's Trina's Trikes Inc reported a debt to equity ratio of 1.91 times at the end…
A: Debt to equity ratio = 1.91 Total debt = $10,900,000 Total equity = ? Debt to equity ratio means…
Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…
A: NPV indicates the excess value of project with respect to the fair value of the project. NPV is the…
Q: pany sold a P9,500,000 issue of 20-year bonds with a total face value of P10,000,000. The bonds pay…
A: For payment of bonds there is need to create the sinking fund required semiannually so that bonds…
Q: Xia has an inheritance in a trust fund left by her recently deceased mother that will pay 50,000 at…
A: Present value of annuity Annuity is a series of equal payments at equal interval till the maturity.…
Q: A firm has a debt-to-equity ratio of 0.50. Its cost of debt is 12%. Its overall cost of capital is…
A: To calculate the cost of equity we will use WACC formula as follows: WACC = [Ke*E]+[Kd*D] Where…
Q: You are preparing to produce some goods for sale You will sell them in one year and you will incur…
A: To calculate the minimum sale price for non negative NPV we will calculate the future value of goods…
Q: long-term debt, preferred stock, and commercial paper
A: Debt that matures in more than one year is called long-term debt. Long-term debt is a liability for…
Q: tter how the stock price fluctuates, as long as it can provide a positive return, the risk of…
A: Standard deviation is measure of risk more is risk more is standard deviation but rate of return and…
Q: since its competitor opened a shop right in front of Hail's store. To increase its sales, is…
A: The company gives more credit period to increase the sales but the new credit policy will be cost…
Q: Jennie invested a certain amount in a bank compounded semi-anually.The bank told her that the…
A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount invested is…
Q: A new drill press is being considered to purchased. The estimated first cost is Php 200,000. The net…
A: IRR is the discount rate that makes the present value of cash inflows equal to initial investment…
Q: loan of $1000 is repaid by equal annual amounts of principal for 10 years and annual interest of 7%…
A: To construct Amortization Table, first we need to find out the annual repayment of the loan…
Q: - D. Conaider E CRA): 207. E CRe) : 30% a port folio of 2 risky assets A & B where =10% 8:20% =0:4…
A:
Q: Q1. One of your company's customer has approached you and the customer says that he wishes to invest…
A: Ans: A Portfolio 1:- Expected return = Sum of Weight * Expected return = (.25*20) + (.75*14) = 5 +…
Q: A company will need $70,000 in 6 years for a new addition. To meet this goal, the company deposits…
A: Amount needed or accumulated amount (FV) = $70,000 Quarterly interest rate (r) = 0.0275 (i.e. 0.11 /…
Q: Hail and Sons operates for 240 days in a year. It has been offered credit terms of 4/30 net 90 days.…
A: If company provide credit than it is cost to company so company provide discount to the customers to…
Q: q7 Lightening Bulk Company is a moving company specializing in transporting large items…
A: The quantity of funds generated by an investment after all revenue items have been collected and…
Q: Suppose we want to compute the four-quarter moving average of Company ABC’s sales as of the…
A: In finance we often use the concept of moving averages to predict and forecast sales of future…
Q: Globex Corporation plc shares are currently trading at $5.00 each. Management wishes to raise…
A: Ex-Rights Share price: It is the market value that a stock will hypothetically have following a new…
Q: XYZ Foods is considering producing a new candy, Tira-Tira. XYZ has spent two years and P450,000…
A: NPV or net present value is defined as the sum of the present values of all future cash inflows…
Q: Review Help Editing Arial v10 E Me S 8 Styles v * Conditional Formatting v General onstant growth 3…
A: Given, D3=0.50 D4 = D3 *(1+growth) D5 = D4 *(1 + growth) Terminal Value =(D5 *( 1 +Growth…
Q: TABLE 1: Net cash flows for three projects Project Omicron Project Upsilon Project Omega Year -10000…
A: Mutually Exclusive Projects: They are capital tasks which contend straightforwardly with one another…
Q: Mr. Kamal wishes to accumulate Rs. 120,000 by the end of 5 years to meet educational expenses of his…
A: Compound interest with principal (A) = P x [1 + (r / n)](n x t) Principal = the present value of…
Q: Where did global financial crisis begin?
A: After the great depression of 1930 the global financial crisis was seen in 2007-2008 based on…
Q: What is the present value of a 20-year annuity of $2,900 per year; i = 6%. Present value %24
A: Present Value (Ordinary Annuity) = C*(((1-(1+i)-n)/i)) Where C = cash flow per period ($2900) i =…
Q: The risk-free rate (rRFrRF) is 4.00%, the market risk premium (RPMRPM) is 4.80%, and Portman’s beta…
A: Dividend Yield: It is a ratio that implies the percentage of the current share price that is paid…
Q: Abraham Ace invested 200,000 at 14% interest compound semi-annually, for 8 years. What is the amount…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: A company estimates that a certain piece of machinery will have to be replaced in five years' time…
A: Future value of growing annuity (due) = [P/(r-g)] *((1+r)^n - (1+g)^n / (r-g))P = Initial payment =…
Q: You’ve been offered $3000 in 4 years for providing $2000 today into a business venture with a…
A: This is a problem involving time value of money. That is the purchasing power of $2000 today will be…
Q: Joe Levi bought a home in Arlington, Texas, for $141,000. He put down 25% and obtained a mortgage…
A: Loan: It is the amount of credit taken by the borrower from the lender. The borrower makes periodic…
Q: What steps can be taken to ensure that a management team makes decisions for the better of the…
A: In finance managers are agents who are appointed by the owners of a company. The stakeholders are…
Q: 1.) According to the Organization for Economic Co-operation and Development, corporate governance…
A: Governance is the set of rules, controls, policies, and resolutions put in place to govern corporate…
Q: A common stock offers dividend of $2 next period and its price is $30 next period. Suppose that the…
A: Data given: Dividend next period= $2 Price next period = $30 Covariance of stock and market=24 Av.…
Q: Which of the following statements concerning income taxes in Canada is not true?
A: option a, b,d are true statements
Q: Giant Eagle Markets is considering the following two dividend policies for the next five years. Year…
A: Present value of future amount With future value (FV), discount rate (r) and period (n), the present…
Q: Suppose Kenya is expecting 8% inflation rate during the next one year as compared to 3% inflation…
A: Kenya: USA:
Q: 1) Finance function is limited to supply of funds to the requirements of the organisation. True…
A: Aim of the finance function is a) Raising sufficient funds( Financing Decisions) b) Proper…
Q: Bob wants $300,000 in his retirement account when he retires in 30 years. How much does he need to…
A: This question can be answered in light of future value of annuity. Annuity is a payment of equal…
Q: esent amount of 10201 is invested into an account, which can be withdrawn after the end of 30 years.…
A: The equivalent uniform annuity would be equivalent to growing annuity when both present value are…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- You are considering an investment in a clothes distributer. The company needs $105,000 today and expects to repay you $120,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 17%. What does the IRR rule say about whether you should invest? What is the IRR of this investment oppurtunity? The IRR of this investment opppurtunity is ____%You have an opportunity to invest $100,000 now in return for $79,700 in one year and $30,100 in two years. If your cost of capital is 9.4%, what is the NPV of this investment? The NPV will be $_______________ (Round to the nearest cent.)You have an opportunity to invest $50,100 now in return for $59,800 in one year. If your cost of capital is 8.2%, what is the NPV of this investment? The NPV will be $_______ (Round to nearest cent)
- You have an opportunity to invest $ 50 comma 900 now in return for $ 59 comma 900 in one year. If your cost of capital is 7.6 %, what is the NPV of this investment?You have an opportunity to invest $ 108 000 now in return for $ 79500 in one year and $ 30 comma 300 in two years. If your cost of capital is 8.5 %, what is the NPV of this investment? The NPV will be $You have been offered a unique investment opportunity. If you invest $8,900 today, you will receive $445 one year from now, $1,335 two years from now, and $8,900 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.7% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.7% per year? Should you take it now?
- You are considering an investment in a clothes distributer. The company needs $106,000 today and expects to repay you $124,000 in a year from now. What is the IRR of this investment opportunity? Given the riskiness of the investment opportunity, your cost of capital is 15%. What does the IRR rule say about whether you should invest? What is the IRR of this investment opportunity? The IRR of this investment opportunity is %. (Round to two decimal places.)You have an opportunity to invest $100,000 now in return for $79,600 in one year and $30,300 in two years. If your cost of capital is 9.4%, what is the NPV of this investment? The NVP will be $_____ (Round to the nearest cent)You invest $5000 at time t=0 and an additional $2000 at time t=1/2. At time t=1/2 you have $5300 in your account and at time t=1 you have $7300 in your account. Find the dollar-weighted rate of return rd and the time-weighted rate of return rt on this investment.A. rd= 2.86 %, rt=3.43 %B. rd= 2 %, rt=2.4 %C. rd= 6.26 %, rt=7.5 %D. rd= 2.51 %, rt=3 %E. rd= 5.01 %, rt= 6 % Please answer it only correct without using Excel
- You have an opportunity to invest $104,000 now in return for $80,300in one year and $30,300 in two years. If your cost of capital is 8.8%, What is the NPV of this investment? $________________________ (Round to the nearest cent.)You have an opportunity to invest $50,000 now in return for $60,000 in one year. If your cost of capital is 8.0%,what is the NPV of this investment?You have been offered a unique investment opportunity. If you invest $8,800 today, you will receive $440 one year from now, $1,320 two years from now, and $8,800 ten years from now. a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? Should you take the opportunity? b. What is the NPV of the opportunity if the cost of capital is 2.6% per year? Should you take it now? a. What is the NPV of the opportunity if the cost of capital is 6.6% per year? If the cost of capital is 6.6% per year, the NPV is $ (Round to the nearest cent.)