Finance Initial Investment $17,766 End of Year Income 1 $5,919 2 $4,285 3 $5,143 4 $3,532 5 $1,800 (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) pop-up content ends PrintDone Justin Lieberman must earn a minimum rate of return of 9.22% as compensation for the risk of the following investment: a. Use present value techniques to estimate the IRR on this investment. b. On the basis of your finding in part a, should Justin make the proposed investment? Question content area bottom Part 1 a. The yield on this investment is enter your response here%. (Round to two decimal places.)
Q: There is this notion that, franchising is still not a big thing in Ghana. 1) What are the gaps…
A: Franchising is a business model in which a franchisor grants the rights to independent…
Q: How can a company mitigate risk using interest rate swaps?
A: Interest rate swaps means swapping the rate of interest between 2 counter-parties.It can be used to…
Q: Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.…
A: A collection of multiple securities, projects, or investment avenues in which an investor infuses…
Q: TIPS A TIPS bond with a $1,000 par value was issued three years ago with a coupon rate of 9%. In the…
A: TIPS bond stands for Treasury Inflation-Protected Securities refer to the treasury bonds whose…
Q: Your company has a customer who is shutting down a production line, and it is your responsibility to…
A: Committed PriceProbability200,0000.40300,0000.25400,0000.10Reservation Value = $100,000
Q: Debit ratio i got 0.220156 it would 22.0% however saying its incorrect
A: Total current debt 2013 = $74990The long-term debt 2013 = $149,900Total assets = $408,300
Q: You are a Portfolio Manager who has a Stock Fund, a Bond Fund and a Treasury Bill Fund. The Stock…
A: Expected return of portfolio can be computed by following formula-Rp = ( Rs × Ws) + ( Rb ×…
Q: Using the binomial call option model to find the current value of a call option with a $25 exercise…
A: Hedge ratio refers to the comparison protected through the use of hedge position with the entire…
Q: Zacher Co.'s stock has a beta of 1.28, the risk-free rate is 4.25%, and the market risk premium is…
A: The required rate of return is the rate required by investors as per the risk involved. It can be…
Q: Kingston, Inc. has evaluated a project that will cost the company $250,000. The project will provide…
A: Payback Period is the period in which cash outflow of the company is recovered from cash inflows. In…
Q: A $290.000 issue of eight-year bonds redeemable at par offers 56% coupons payable quarterly. What is…
A: A bond refers to an instrument used by the issuing company to raise debt capital from…
Q: A four-year promissory note for $3800 plus interest at 9.5% compounded semiannually was sold 18…
A: Here,Nominal Interest Rate (r) is 9.5%Compounding period (m) is Semi Annual i.e 2Required…
Q: please post cell reference
A: First, I'm going to list the formulas and then solve them in excel. We can determine the expected…
Q: To calculate the number of years until maturity, assume that it is currently January 15, 2019. All…
A: Number of years= Jan 15,2024 - Jan15, 2019= 5Number of periods= number of years * 2 semiannual…
Q: Given the returns over the 1988-2013 period, and the arithmetic mean return and volatility you…
A: The risk-adjusted return refers to the return provided by the investment after taking the risk…
Q: hat will the ending balance be after Chris has made three years of payments? $17,508.83…
A: Annuity is a series of equal periodic payments for a specified period.With periodic interest rate…
Q: ow Tire, Inc. has sales of $1,448,000 and cost of goods sold of $978,000. The firm had an average…
A: Sales = $1,448,000 Cost of Goods Sold = $978,000 Average Inventory = $96,800 Ending Inventory =…
Q: Complete or fill in the entire “Annuity" chart for the below annuities by filling in all the blanks.…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Steel PIc is selling an existing asset for $25,000. The asset was purchased three years ago at a…
A: The tax benefit refers to the discount that the company receives for selling an asset at a lower…
Q: Calculate the monthly payment by table lookup and formula. (Answers will not be exact due to…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Many years ago, Castles in the Sand Incorporated issued bonds at face value at a yield to maturity…
A: Bond is a long-term debt instrument that is used by organizations to raise debt funds from public.…
Q: YMMV Inc. issues a bond with a face value of $5,000,000 with a coupon rate of 1.750% maturing in 20…
A: Future value refers to the concept of time, value of money used for estimating the return over…
Q: 2,- HOW MUCH WILL A CAPITAL OF $10000 AT 18% OF CAPITALIZABLE INTEREST PRODUCE SEMESTER IN 5 YEARS…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: The market consensus is that Analog Electronic Corporation has an ROE = 14%, a beta of 1.85, and…
A: EPS is the earning available for shareholders after all debt obligations.Price earning ratio is the…
Q: The accounting staff of Lambert Company has assembled the following information for the year ended…
A: Statement of cash flows is a financial statement that captures only cash dealt items in terms of…
Q: A company is considering investing in a new machine that requires an initial investment of $51,939.…
A: Internal rate of return refers to the minimum rate that is earned by the investors on an investment…
Q: Kline Construction is an all-equity firm that has projected perpetual EBIT of $292,000. The current…
A: Value of Levered Firm:A levered firm is a firm that has debt in its capital structure. The value of…
Q: Barry Company is considering a project that has the following cash flow and WACC data. What is the…
A: Net present value (NPV)NPV is a capital budgeting tool to help in deciding whether a capital project…
Q: If you could pay for your mortgage forever, how much would you have to pay per month for a…
A: A mortgage refers to a loan taken out to purchase property with the property itself acting as…
Q: Loans that are to be securitized are passed on to ____ _ _ _ _ _ ___. This helps ensure that if the…
A: Securitization refers to the practice where debt obligations are pooled together and sold as…
Q: Over what range of discount rates would the company choose Project A? Project B? At what discount…
A: Discount rate is the rate at which cash flows of the project is discounted to PV. The sum of all PV…
Q: Wool Express (WE) has a capital structure of 30% debt and 70% equity. WE is considering a project…
A: The WACC refers to the average return that the company provides to all its stakeholders for…
Q: Required: (ii) Using the most likely cost of capital of 10%, calculate the sensitivity of Project…
A: NPV is a capital budgeting tool to decide whether the capital project should be accepted or not. As…
Q: Bond valuation and yield to maturity Personal Finance Problem Mark Goldsmith's broker has shown him…
A: A bond refers to an instrument used by companies to raise debt capital from non-traditional sources.…
Q: 1) A gold miner expects to have 80, 000 ounces of silver gold production at end of 2023. It has…
A: A futures contract is a legal agreement to buy or sell a particular commodity asset, or security at…
Q: 3. You are given the duty of valuing your company shares. Expected net income of the next year (year…
A: Free cash flow refers to the Future cash inflow from company's operations and business less change…
Q: Shi Import-Export's balance sheet shows $300 million in debt, $50 million in preferred stock, and…
A: In order to calculate weighted average cost of capital we consider the capital structure of the…
Q: A 9-year bond has a yield of 14% and a duration of 8.157 years. If the market yield changes by 85…
A: The duration of bond show how much bond is sensitive to the interest rate that means how much prices…
Q: You bought a stock one year ago for $48.77 per share and sold it today for $59.69 per share. It paid…
A: In the given case, we have provided the share purchase price initially. It is the initial…
Q: Rao Construction recently reported $28.00 million of sales, $12.60 million of operating costs other…
A: EBIT means operating income . It means earnings before taxes and interest. Thus , interest payments…
Q: Subject : - Finanace assume you currently have a chase sapphire preferred card with a balance of…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Bond The effect of coupon rate (PMT) on interest rate sensith 10-year, 10% annual coupor 10-year,…
A: Yield to Maturity refers to the total return earned by the bond including present value of future…
Q: At present, the real risk free rate of interest is 0.020 while inflation is expected to be 0.020 for…
A: Maturity risk premium refers to the investor's compensation while taking more risk and the longer…
Q: Subject :- Accounting Amy contributed $1011.00 at the end of every six months for 21.5 years into…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free…
A: StockExpected ReturnStandard DeviationA8%55%B4%45%Correlation -1
Q: Suppose that on January 1, 2021 the balance on a fund is $14940. Suppose that there are…
A: MonthsParticularsValuesJanuaryFund Balance on January 1$14,940FebruaryFund Balance on last day of…
Q: Y-u-r-i- -T-r-i-n-i-d-a-d- -h-a-s- -a- -m-o-n-t-h-l-y- -t-a-k-e---h-o-m-e- -p-a-y- -o-f 84,250;…
A: Introduction:Debt-to-income ratio (DTI): It is a ratio generally used to assess a borrower's…
Q: What kind of financial risk caused the SVB crisis, what could be done to deal with it and what could…
A: The SVB crisis was primarily caused by financial risks that arose due to various factors within the…
Q: b-1. Under the expectations theory, what yields to maturity does the market expect to observe on 1-…
A: YTM is that rate of return which an investor expects to be generated from the investment if the…
Q: Assuming a 12% annual interest rate, determine the present value of a five-period annual annuity of…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Finance
| Initial Investment | $17,766 | |
| End of Year | Income | |
| 1 | $5,919 | |
| 2 | $4,285 | |
| 3 | $5,143 | |
| 4 | $3,532 | |
| 5 | $1,800 | |
| (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) |
pop-up content ends
PrintDone
Justin Lieberman must earn a minimum
a. Use present value techniques to estimate the
b. On the basis of your finding in part
a,
should Justin make the proposed investment?
Question content area bottom
Part 1
a. The yield on this investment is
enter your response here%.
(Round to two decimal places.)
Step by step
Solved in 3 steps with 2 images
- Home Insert Draw Design Layout Mail ngs Review View Help A Paste Font Paragraph Styles Editing Dictate Editor Reuse Files do Clipboard N Styles S Voice Reuse Files Editor Problem Initial investment (II) = $6,500, TPP = 2.5 years, required rate of return (r) = 8% Year Operating cash flow 1 2,000 4,000 3 3,000 1. How much is payback period (PP)? Should the project be accepted or rejected? 2. How much is discounted payback period (DPP)? Should the project be accepted or rejected? 3. How much is net present value (NPV)? Should the project be accepted or rejected? 4. How much is internal rate of return (IRR)? Should the project be accepted or rejected? 5. How much is modified internal rate of return (MIRR)? Should the project be accepted or rejected? 5 736 words English (United States) O Focus 7:38 PM 4/13/2022Module 02 Written Assiqnment Application of Future Value and Present Value.xlsx - OpenOffice Calc File Edit View Insert Format Iools Data Window Help ABC 《 的, ABC Verdana 10 В I U 三 開 % 0 □ A B G H I 1. Assume an investment of $2,000 today. Calculate the FV of the investment according to eac 6. 7 a. 6 percent compounded annually 8 9. Rate 6% 10 Nper PMT 12 11 12 PV $2,000.00 $0.00 13 FV 14 15 b. 8 percent compounded annually 16 17 Rate 8% 18 Nper 12 19 PMT 20 PV $2,000.00 21 FV 22 23 c. 10 percent compounded annually 24 25 Rate 10% 26 Nper 12 27 PMT 28 PV $2,000.00 29 FV 30 31 d. 10 percent compounded semiannually 32 Rate K Future Value Present Value 33 10% STD Sheet 1/2 PageStyle Future ValueFINAL EXAM Managerial Finance.pdf - Adobe Reader File Edit View Window Help Оpen 1 73.8% Tools Fill & Sign Comme Sign I • Export PDF • Create PDF • Edit PDF 1- Evaluate the following projects using the payback method assuming a rule of 3 for payback. years • Combine PDF Project A -10,000 Project B -10,000 Year • Send Files 1 4,000 4,000 Store Files Full-screen Snip 4,000 3,000 3 4,000 2,000 Acrobat.com 4 1,000,000
- 2. Use the worksheet tab Problem 2 A-FV Retirement and Problem 2 B -PV Invest K File 6 7 ñ Paste K11 16 17 18 Book1 - Excel Clipboard Home Insert Calibri X Dr- Ready B I U 89- Draw Page Layout Formulas Data Review View == 28 M =100- Font 2 Return Rate 3 Investment Duration in Years 4 Amount Invested Future Investment Value fx One-Time Investment Scena Return Rate 9Investment Duration in Years 10 Monthly Payroll Deduction 11 Company Match 12 Monthly Investment 13 Current Balance 14 Future Investment Value 15 Sheet1 11 A A A- Retirement Plan Scenario Sheet2 Accessibility: Investigate D O AI 19 9 Return Rate = 5.500% 13 7500 Alignment 4.500% 35 500 50% 750 $10,000.00 19 D O Search General - $ % 9 68 28 Number Automate Help Acrobat Conditional Formatting W Format as Table Cell Styles - Styles Goal seek Future Savings Value at $20,000 Future Savings Value at $25,000 Insert Delete Format - Cells G O dating FS Sensitivity Retirement plan Goal Seek Solution by changing Return Rate-Goal seek…Learning SE MINDTAP evo/index.html?deploymentid=60338517901669990751687760&elSBN=9780357517642&nbld=3626933&snap... ☆ lomework 6300. 1 mancial Lailuialvi vi a spicoubnicel. Hide Feedback Correct X f6 Quantitative Problem 1: You plan to deposit $2,200 per year for 6 years into a money market account with an annual return of 2%. You plan to make your first deposit one year from today. a. What amount will be in your account at the end of 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 4 b. Assume that your deposits will begin today. What amount will be in your account after 6 years? Do not round intermediate calculations. Round your answer to the nearest cent. 6 Hide Feedback Incorrect F Check My Work Feedback Review the FVAN definition and its equation. Q Search Understand the difference between an ordinary annuity and an annuity due. Be careful about the order of mathematical operations if using the equation. If using a financial calculator, be…Accounting Question
- Download the attached Excel file (First Q Profits Report W Goal Seek_Ver2.xlsx). Instructions: . There are 3 Worksheet Tabs in this Excel file; First Q, First Q Goal Seek, and Minivan Loan. • The First Q (First Quarter) tab shows the first quarter revenue and expenses of the Downtown Internet Cafe. For this tab, • Complete the Proportion column, cells G7 through G11 Each proportion value shows the % of the quarterly sale of that item over the entire sale. Calculate the Net Income row, cells B24 through F24. o Compute the Profit Margin row, Cells B25 through E25. o Add Net Income Sparkline for January through March in Cell H24. in For this tabPROGRAMS SELF DEVELOPMENT E-LIBRARY 8. 6. 10 11 12 13 14 15 16 Your company wants to invest JD 10,000,000 in network, taking into consideration the below table Investment 10,000,000.00 Lifetime Annual Revenues in Yearl 2,000,000.00 2% Annual decline in revenues from Y2 30% Direct Cost % of revenues 15% OPEX % of revenues 7% Interest Discount rate/fWACC) CO1. Calculate the Annual rate of return. Solving for Rates - Excel FILE INSERT PAGE LAYOUT FORMULAS DATA REVEW VIEW Calibri 国 Paste BIU - -A-Alignment Number Conditional Format as Cell Cells Formatting Table Styles Clipboard Font. Styles A1 E. What annual rate of return is earned on a $5,000 investment when it grows to $10,750 in six years? (Do not round intermediate calculations and round your final answer to 2 decimal places Present value 5,000 Future value Number of periods Complete the following analysis. Do not hard code values in vour calculations. Annual rate of return s of 10 Next > here to search TPL
- es of Finance | ZSpring20 spring21 Time left 1:03:51 You intend to buya farm in seven years and plan to have saved OMR 75,200 for a down payment. How much money would you have to place today into an investment that earns 8% per year to have enough for your desired down payment? O a 43,878.48 Ob. 128,879.59 O. 57,440.67 Od. 31,934.26 Oe 88,810.65 NEXT PAGE 28 Finis CONTACT US P Type here to search 144 %23 prt sc delete 4 6. 7. V. 8 - backspace T 44 G 13 K C M 10 pause alt ctrlвсе Google Chrome - D... My Learning Progre... N Northwestern Univ... Solution Manual Fo... Business Law Question 28 of 40 View Policies Show Attempt History < Current Attempt in Progress X Your answer is incorrect. 0/0.3 Your grandfather has agreed to deposit a certain amount of money each year into an account paying 7.90 percent annually to help you go to graduate school. Starting next year, and for the following four years, he plans to deposit $2,350, $8,600, $7,200, $6,600, and $12,150 into the account. How much will you have at the end of the five years? (Round answer to 2 decimal places, e.g. 15.25.) Future value at end of five years eTextbook and Media Save for Later Using multiple attempts will impact your score. 20% score reduction after attempt 2 Q Search 41719.11 GUND Attempts: 1 of 3 used Submit AnswerSafari File Edit View History Bookmarks Window Help Bb Saving Money - 22/SU INTENSIVE QUANT REASONING (105A-900) $ webassign.net Q8 +88 W WA Finance 1 - Saving Money and Earning Interest - 22/SU INTENSIVE QUANT REASONING(105A-900), Sum... Assume that you have $3000 to invest for 5 years. You could purchase a 5-year CD with a guaranteed interest rate of 2.47% compounded monthly. On the other hand, if you are willing to face the risk of actually losing your money, you could invest it in the stock market which has an historical return rate of about 6.5% per year. Think of this as investing your money in a non-guaranteed account that pays 6.5% APR compounded annually. With the specific interest rates quoted, how much more interest could you potentially earn by putting your money in the stock market for 5 years instead of in the CD? Round your answer to the nearest whole dollar. Thu Jul 7 11:49 AM