Q: MR. MAGBITANG MADE A MONEY MARKET PLACEMENT OF P100,000,000 FOR 30 DAYS AT 12% PER YEAR. IF THE…
A: Initial investment = P100,000,000 Interest rate = 0.12 Period = 30 days Withholding tax rate = 0.20…
Q: Faisal has $12,000 in his savings account and can save an additional $3600 per year. If terest rates…
A: Present Value $ 12,000.00 Yearly Saving $ 3,600.00 Future Value $…
Q: Use up to 6 decimal places during solving for the answer. Write all numerical final answers round…
A:
Q: In 1998, Hepler Company's sales were $26 million and its total assets were $10 million. Current…
A: A company is expecting growth in sales driven by additional assets. We have to find the amount of…
Q: A LOAN OF P80,000 IS MADE FOR A PERIOD OF 18 MONTHS AT A SIMPLE INTEREST RATE OF 10%. WHAT DUE AT…
A: Loan amount = P80,000 Annual interest rate = 0.10 or 10% Annual period = 1.5 (i.e. 18 / 12) Amount…
Q: Find the nominal rate, which if converted semi-quarterly could be used instead of 12% compounded…
A: Given, The rate is 12% compounded semi annually
Q: how was the rate calculated, without excel
A: Given, The loan amount is $1000 Rate is 4% Fifth installment is $525
Q: For a 5-year period, determine the compound interest rate per year that is equivalent to a simple…
A:
Q: 6. Use the following tax table to answer this question: Taxable Income $0- 50,001- 75,001- 100,001-…
A: Net income refers to the amount earned by the firm from its business operations. It is to be…
Q: Monster Limos plans to issue new bonds that have the same yield as its existing bonds, which have a…
A: Given: Particulars Amount Face value (FV) $1,000 Present value(PV) 886 Coupon rate 4%…
Q: 2. What equal payments at the end of 2 years and 5 years will equitably replace these obligations,…
A: Your answer: 49853.44
Q: company will be paying off a loan witj annual payments of $6000 for 8 years assuming 5% annual…
A:
Q: Determine the exact simple interest on P5,000 invested for the period from January 15, 1996 to…
A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount initially…
Q: iulia has been a good saver during her time at university whilst working a part-time job, and has…
A: To calculate the value of the investment after 5 years from now we will use the below formula…
Q: Tembo holds a one-year put option on Shoprite common stock. The put option can be exercised at K50.…
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only…
Q: A rich donor gives a hospital $1,040,000 one year from today. Each year after that, the…
A: First donation (F) = $1,040,000 Growth rate (g) = 0.06 Interest rate (r) = 0.11 Period (n) = 10…
Q: A BANK CHARGES 15% SIMPLE INTEREST ON A P500.00 LOAN. HOW MUCH WILL BE REPAID IF THE LOAN IS PAID…
A: Present Worth P 500.00 Interest Rate 15% Time Period (Months) 3
Q: Kristen invested the profit of her business in an investment fund that was earning 3.25% compounded…
A: The future value of amount includes the amount being deposited and amount of compounding interest…
Q: CASE: Merritt Enterprises needs P500,000.00 for its November expenses. Given the scenarios below,…
A: The commercial line of credit refers to the agreement between a customer and a bank where the bank…
Q: Daigle started placing $75 per month into an annuity savings plan. The future value of his account…
A: Amount of Annuity is $75 per month Future Value of Annuity is $10,212.90 Time period is 10 years To…
Q: a. 1. Compute return on stockholders' equity for both firms. Note: Input your answers as a percent…
A: Return on Equity: ROE is a measure of profitability used in the ratio analysis of firms. It is…
Q: Giulia has been a good saver during her time at university whilst working a part-time job, and has…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: What is an opportunity cost rate?How is this rate used in discounted cash flow analysis? Is the…
A: Opportunity cost: Opportunity cost is the income lost due to choosing other alternative. Example…
Q: Eilish Company had the following account balances. Accounts Payable $ 821 Accounts Receivable $…
A: The information given in the question: 1. Accounts Payable $ 821 (Credit balance)2. Accounts…
Q: For the cash flows below determine the amount in year 1, if the annual worth in years 1 through 9…
A: Annual Cash flow (CF) = $3500 Interest rate (r) = 0.10 Period (n) = 9 Years Amount in year 1 (P1) =…
Q: For each account on this company’s balance sheet, show the change in the account during 2021 and…
A: Use & Source of Cash: The use of cash represents the decline in current liabilities, the…
Q: There are two projects that are both asking for funding. The company will fund one of the projects,…
A: Given, Initial investment is $1,014 required rate of return is 12%
Q: Calculate the price of a 5-year bond that has a coupon of 6.5 per cent and pays annual interest. The…
A: Solution:- Bond price means the price at which the bond is currently trading in the market. It is…
Q: Kelly O’Brien met Jody Jansen at Sunshine Bank and suggested she consider a loan on exact interest.…
A: We have to calculate interest due and the maturity amount assuming the loan is on exact interest.…
Q: Divided Walls Construction (DWC) has determined the yield to maturity (YTM) on new bonds is 5…
A: We have the cost and proportion of different sources of capital in the capital structure. We have to…
Q: Your firm is contemplating the purchase of a new $605,000 computer-based order entry system. The…
A: The Internal rate of return refers to the analysis that is used for estimation of the level of…
Q: Patricia has $5,740 in a savings account earning 4.0% annually. She plans to use the money in the…
A: Initial investment (I) = $5,740 Annual saving (C) = $3,280 Period (n) = 3 years Interest rate (r) =…
Q: You go short the soybean market 2 contracts on March 1 at a price of $11.58, on May 15 you offset…
A: Short position and long position are two situations in stock market or future contracts. Under short…
Q: if the cash flow is grow for indefinite period then isn't the present value calculated as = Cash…
A: A cash flow that grows for an indefinite period is called a perpetuity. A perpetuity, essentially,…
Q: Andres Michael bought a new boat. He took out a loan for $24,200 at 3.75% interest for 4 years. He…
A: Interest is the amount charged or received on the amount borrowed or invested by the business for…
Q: Fernando invested money in a 3-yr CD (certificate of deposit) that returned the equivalent of 6.5%…
A: Investment in 30 m Cd is X - 3000 Let Investment in 3yr CD is. X Total interest earned is 1075 Then…
Q: Tanaka Machine Shop is considering a 4-year project to improve its production efficiency. Buying a…
A: After tax salvage value After tax salvage value is calculated as shown below. After tax…
Q: Consider a bond that has a face value of $1,000. The bond has a maturity of 25 years and pays…
A: Face value and maturity value of the bond (Z) = $1,000 Semiannual coupon amount (C) = $27.50 (i.e.…
Q: Solve for the unknown interest rate in each of the following: (Do not round intermediate…
A: Future value = FV Present value = PV Rate of interest = r Time period = n FV = PV * (1+r)n
Q: As a financial analyst at Credit Suisse, you are analyzing the after tax returns for your client.…
A: Expected after tax return on Investment = Dividend + Capital AppreciationInitial Investment
Q: In 2015, the UGBS embarked on a project. The project will receive annual inflows of GHC 30,000 from…
A: Net present value refers to the comparison of present values of all cashflows with its initial…
Q: Please show work and explain answer 7.________ measures the percentage of each sales dollar…
A: In finance we frequently use financial ratios and metrics. The ratios and metrics are of different…
Q: You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta…
A: In the world of finance and investments a portfolio consists of different types of financial assets…
Q: a) Tembo holds a one-year put option on Shoprite common stock. The put option can be exercised at…
A: There are two unrelated questions. Each of them have sub parts as well. All the sub parts of the…
Q: Illustrate the cash flow diagram. An investor bought a jaw crusher worth P25,000.00 with an expected…
A: An investment and all its characteristics are known. We have to prepare the cash flow diagram…
Q: A bond with a face value of P1,500,000 is sold at P1,400,000. If the bond matures in 5 years and…
A: Step 1 Bond valuation: It is the cycle to determine the fair value of a bond or present value of a…
Q: Consider an entrepreneur who plans to invest in a project that requires an initial investment of…
A:
Q: 8.________ measures the return earned on the common stockholders' investment in the firm.
A: Ratio Analysis: Ratio analysis is used by users of financial statements to compare the performance…
Q: 11-7. Jumbo Juice’s preferred stock pays a constant dividend equal to $4.75 per share. The firm’s…
A: Annual dividend (D) = $4.75 Flotation cost (F) = 0.05 or 5% Number of shares issued (N) = 10,000…
Q: QUESTION 1 Questions a. After-tax cash flows for two mutually exclusive projects (with economic…
A: According to bartleby guidelines , if multiple questions are asked , then 1st question needs to be…
Step by step
Solved in 3 steps
- Dawn is preparing a home office to perform subcontract projects for midsized architect firms. She plans to use $13,000 of her own funds, which currently generate a return of 4% per year. The remainder of financing will be provided by a $9,000 bank loan carrying a 9% per year interest rate. She hopes to realize a return of 3% above the average cost of capital to establish her office, and she realizes that the factors of inflation and risk should also be considered. Her decision is to add another 1.5% per year to compensate for these elements. What is the MARR she should use when evaluating projects? the Marr she should use is __%Use Excel to solve the following problem. Assume that as a local government financial analyst you are asked to project the feasibility of a loan to a proposed public service venture for its start-up funding. The venture’s principals estimate that, at the end of 5 years, they will be able to pay back up to $800,000 from revenues accruing to the venture’s activities. Assuming that your organization’s current “average cost of capital” is 4.8% (the “discount rate”). Assuming monthly compounding, what is the maximum amount your government can commit to the venture for its start-up? (I have worked this problem out on my own, I just want to be sure I used the correct formulas.)Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $1,650,000 and will last 10 years. Evee Cardenas is interested in investing in a women's specialty shop. The cost of the investment is $230,000. She estimates that the return from owning her own shop will be $55,000 per year. She estimates that the shop will have a useful life of 6 years. Barker Company calculated the NPV of a project and found it to be $63,900. The project's life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000. Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar. Use the minus sign to indicate a…
- Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,700,000 and will last 10 years. Evee Cardenas is interested in investing in a women’s specialty shop. The cost of the investment is $270,000. She estimates that the return from owning her own shop will be $52,500 per year. She estimates that the shop will have a useful life of 6 years. Barker Company calculated the NPV of a project and found it to be $63,900. The project’s life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000. 2. Conceptual Connection: Assuming a required rate of return of 8%, calculate the NPV for Evee Cardenas' investment. Round to the nearest dollar. If required, round all present value calculations to the…Each of the following scenarios is independent. Assume that all cash flows are after-tax cash flows. Campbell Manufacturing is considering the purchase of a new welding system. The cash benefits will be $480,000 per year. The system costs $2,700,000 and will last 10 years. Evee Cardenas is interested in investing in a women’s specialty shop. The cost of the investment is $270,000. She estimates that the return from owning her own shop will be $52,500 per year. She estimates that the shop will have a useful life of 6 years. Barker Company calculated the NPV of a project and found it to be $63,900. The project’s life was estimated to be 8 years. The required rate of return used for the NPV calculation was 10%. The project was expected to produce annual after-tax cash flows of $135,000. Required: 1. Compute the NPV for Campbell Manufacturing, assuming a discount rate of 12%. If required, round all present value calculations to the nearest dollar.$ Should the company buy the new welding…Maddy is the founder and CEO of Sauerbreit Manufacturing Global (SMG). The firm is introducing a new product line of high-end wireless computer mice. This project is expected to generate $196,000 in revenue during year one of the project. Revenue is expected to grow 30% each year during this six-year project. SMG will invest funds for working capital to support this new project; starting at time zero, each year's end-of-year total net working capital investment will be 25% of the following year's revenue. Calculate the revenue, total net working capital investment, and the actual net working capital cash flows that each year during this project's life. Then answer the following questions (IMPORTANT: Make sure to place a negative sign (-) in front of any negative cash flow.) A: What is the NWC cash flow at time 0? B: What is the Total NWC Investment at the end of Year 4? C: What is the NWC cash flow at year 6?
- Monica is a senior financial manager of Eclipse Ltd. She is conducting a capital budgeting analysis on a new product. She has already authorised an extensive market research on the marketability of the product that cost $15,000, which she paid yesterday. The new project is expected to generate yearly revenue of $390,000 for 4 years. The related variable costs are expected to be $100,000 p.a. and Monica estimates the relevant fixed costs would be another $30,000 p.a. The project will require the company to purchase new equipment at a cost of $500,000. The new equipment will be installed in a building which the company already owns but the building is currently left vacant. The company will depreciate the equipment by the straight-line method to zero salvage value over the 4 years and Monica believes that they can sell the equipment at the end of 4 years for $20,000. Eclipse Ltd’s required payback is 3 years and the required rate of return is 12% p.a. The relevant tax rate is 30% and tax…Turtle is the manager of the Home Care Products Division of Care Corporation. As a manager of an investment center, Turtle's performance is measured using the residual income method. For the coming year, Turtle wants to achieve a residual income target of P100,000 using an imputed interest charge of 20%. Other forecasted figures for the coming year are as follows: Working Capital Plant and equipment Costs and expenses P90,000 860,000 1,210,000 How much should revenues be next year to achieve the residual income target? 1,482,000 1,464,000 1,300,000 1,500,000Sharon Lee operates a popular summer camp for elementary school children. Projections for the current year are as follows: Sales revenue $8,340,000 Operating income Average assets $739,250 $4,208,000 The camp's weighted-average cost of capital is 10%, and Sharon requires that all new investments generate a return on investment of at least 15%. The camp's current tax rate is 30%. At last week's advisory board meeting, Sharon told the board that she had up to $70,000 to invest in new facilities at the camp and asked them to recommend some projects. Today the board's president presented Sharon with the following list of three potential investments to improve the camp facilities. Swimming Playground $ 2,470 Pool Gym $3,910 Incremental operating income $5,760 Average total assets 19,000 32,000 23,000 (a) Your answer is partially correct. Calculate the return on investment, residual income, and economic value added for each of the three projects. (Enter negative amounts using either a…
- K You are a consultant who has been hired to evaluate a new product line for Markum Enterprises. The upfront investment required to launch the product line is $12 million. The product will generate free cash flow of $0.76 million the first year, and this free cash flow is expected to grow at a rate of 4% per year. Markum has an equity cost of capital of 11.6%, a debt cost of capital of 7.51%, and a tax rate of 22 %. Markum maintains a debt-equity ratio of 0.70. a. What is the NPV of the new product line (including any tax shields from leverage)? b. How much debt will Markum initially take on as a result of launching this product line?. c. How much of the product line's value is attributable to the present value of interest tax shields?Mariam Alikozay is considering opening a cold storage refrigeration business. She would invest $50,000 to purchase equipment and furnishings and another $100,000 for inventories and other working capital needs. Rent on the building used by the business will be $25,000 per year. In addition to building rent, other annual cash outflows for operating costs will amount to $44,000. She estimates that the annual cash inflow from the business will amount to $100,000. Mariam plans to operate the business for only six years. She estimates that the equipment and furnishings could be sold at that time for about 10% of its original cost. The discount rate is 16%. Compute the net present value of this investment. Please post in word , not pictureMariam Alikozay is considering opening a cold storage refrigeration business. She would invest $50,000 to purchase equipment and furnishings and another $100,000 for inventories and other working capital needs. Rent on the building used by the business will be $25,000 per year. In addition to building rent, other annual cash outflows for operating costs will amount to $44,000. She estimates that the annual cash inflow from the business will amount to $100,000. Mariam plans to operate the business for only six years. She estimates that the equipment and furnishings could be sold at that time for about 10% of its original cost. The discount rate is 16%. Compute the net present value of this investment.