If you invest $9,000 today, how much will you have: a. In 2 years at 9 percent? b. In 7 years at 12 percent? c. In 25 years at 14 percent? d. In 25 years at 14 percent (compounded semiannually)? Your uncle offers you a choice of $30,000 in 50 years or $95 today. If money is discounted at 12 percent, which should you choos
37. Given some amount to be received several years in the future, if the interest rate increases, the present value of the future amount will be (pick the best answer) 1 higher 2 lower 3 stay the same 4 cannot tell 5 variable
The more frequent the compounding, the higher the future value, other things equal. A) True B) False 2. For a given amount, the lower the discount rate, the less the present value. A) True B) False 3. How much will accumulate in an account with an initial deposit of $100, and which earns 12% inter
I have attached a format to use for the following questions. I need help, because for some of these I have been searching online for a calculator that can help me an I need help with these and others. The week 2 word document are the questions and the excel document is the template the have to go in. --- 1.Present Valu
Your company needs $500,000 in two years time for renovations and can earn 9% interest on investments. a) What is the present value of the renovations? b) If your company deposits money continuously at a constant rate throughout the two year period, at what rate should your money be deposited so that you have $500,000 when y
I would like someone to explaine the following problems (See attached file for full problem description) --- - Retirement savings - Annuity Value - Amortizing Loan ---
Using a calculator can you show me step by step how I can calculate a monthly mortgage payment. For example the mortgage is $120K, the rate is 4.5% and the term is 360 months. Further suppose I decide to pay off the mortgage at year 5, what would the amount owed be? I have read the book and see the formula, I can calcul
I have two questions but question 2 has three parts: 1) Using the Rule of 72, how much would $5,000 accumalte to after 27 years if the rate of return is 8% ? 2 a) What woudl the value of a $1000 face value bond with a stated interest rate of 9% return and a 10 year life ? b) if the intrest rate increased to 10%, what wo
Company makes a deposit of $600,000 on 1/1/01 and a deposit of $400,000 on 1/1/03 into an account that pays interst at 6% compounded semiannually. On 1/1/04, Company transfers the entire balance in the account to a new account that pays interest at 8% compounded quarterly. Company then deposits %500,000 into the account on 1/1
BE2-19 Porter Company signed a lease for an office building for a period of 10 years. Under the lease agreement, a security deposit of $10,000 is made. The deposit will be returned at the expiration of the lease with interest compounded at 5% per year. What amount will Porter receive at the time the lease expires? BE2-20 Go
Jane's goal is to have an investment grow to $100000 in 20 years. Her strategy is to make lump-sum contributions in years 0, 5, 10, and 15. That is, in Year 0, she will contribute $X, in year 5 she will contribute $x, etc. where $X is the same at each contribution. Earning an effective annual rate of interest of 10%, what does s
What factors should you consider before deciding which company to buy?
Company A is considering the acquisition of a firm in the Czech Republic and would like your opinion on this. It plans to operate the firm for 3 years and then reevaluate the holding. Free Cash flows are estimated as follows: Year 1 - 38.63M Czech Koruna (CZK), Year 2 - 44.33 M CZK, Year 3 - 50.48M CZK The third year t
The Acme Company must solve a series of five problems that require you to apply the concept of "time value of money," or TVM. The five problems are listed below. Solving them will require the use of Microsoft Excel and these TVM tables (see the attachments). Before you begin your work, each student is to select a unique nine-dig
These are just exercises. I need help with figuring out the formulas on all 5 questions. Thanks! (Complete problem also found in attachment) 1. Annuity Values. a. What is the present value of a 3-year annuity of $100 if the discount rate is 6 percent? b. What is the present value of the annuity in (a) if you hav
1. U have been tracking a non-dividend paying share that you purchased. Its price since you purchased it (t = 0) until today (t = 3) has been P0 = $27.50, P1 = $17.50, P2 = $31.50 and P3 = $26.50. a) Compute the periodic rates of return. b) Compute the arithmetic and geometric rate of return for this stock over the pas
1) Would you rather have a hundred dollars today or a hundred dollars a year from now? Why? 2) What are the underlying concepts behind time value of money? 3) What are examples of long-term notes payable in our personal finances? 4) Why is unearned revenue considered a liability?
1. Between stocks, mutual funds, and/or bonds, what would be your selection(s) for your retirement plan? Why? 2. What are the three most important principles of finance? Why?
A famous quarterback just signed a $15 million contract providing $3 million a year for 5 years. A less famous receiver signed a $14 million 5-year contract providing $4 million now and $2 million a year for 5 years. Who is better paid? The interest rate is 10%. Please show all work. Thanks!
McNally Motors has yet to pay a dividend on its common stock. However, the company expects to pay a $1.00 dividend starting two years from now (i.e., D2 = $1.00). Thereafter, the stock's dividend is expected to grow at a constant rate of 5 percent a year. The stock's beta is 1.4, the risk-free rate is kRF = 0.06, and the expe
1. Person A's portfolio is worth $100,000 today. He expects to retire in 10 years and also expects to earn an 8% return per year on his portfolio until he retires. Person A's yearly statement from the Social Security Administration projects that he will receive a constant amount of $2000 per month beginning at his retirement
What impact do you think electronic retailing will have in the future? I just need a paragraph for this question so I can brainstorm with it.
Newman Medical Center is considering purchasing an ultrasound machine for $1,150,000. The machine has a 10-year life and an estimated salvage value of $30,000. Installation costs and freight charges will be $19,200 and $800, respectively. The center uses straight-line depreciation. Newman's cost of capital is 9%. The med
1. You invest in an investment that pays 22 equal annual payments of $70 at the beginning of each of then next 22 years. What is the present value of this investment given a discount rate of 2% under annual compounding? Choose and place on the answer sheet the best answer from those provided below and attach your supporting work
4. You have just won the lottery and you have three choices to choose from as to how you will receive your winnings. Choice I: You would receive a lump sum payment of $75,000 today. Choice II: You would receive $10,000 at the end of each of the next 8 years Choice III: You would receive $10,000 at the beginning of each of t
Present Value Years Interest Rate Future Value 4 4% $15,451 9 12% 51,557 14 22% 886,073 18
I'm having a problem trying to assess a company's current performance and assessing their future. I have part of the statement of cash flows, and all of my figures match and are ok. I'm stuck trying to figure out how they are currently performing, and how to assess their future. There are so many equations, and I'm not sure w
Please see the attached case study.
This problem involves a contract where someone receives money every few months for a certain length of time and then wants to sell the contract for an arbitrage oppurtunity. Anyone can buy or sell a contract that entitles the owner (buyer) to receive $80.00 every six months for the next two years (payments made at the end of
1/ In fifteen years you need $1,000,000 to move to Fiji. Ten years from now you can invest in a five year investment that pays 12% interest compounded quarterly. Five years from now you can invest in a five year investment that pays 10.5% compounded semiannually. If you are able to earn 8.25% interest compounded monthly for the