Compute the cost of not taking the following cash discounts.Note: Use a 360-day year. Do not round intermediate calculations. Input your final answers as a percent rounded to2 decimal places.Answer is complete but not entirely correct.Cost of Lost Discount22.11%18.71%40.51%157.41%a. 2/11, net 50b. 2/17, net 50c. 4/15, net 50d. 4/19, net 155

Companies give discount to the companies and that discount is the cost to the company and the cost…

Answered: Compute the cost of not taking the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Take me to the text Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Future Value (Single Payment) Discount Rate Number of Years Present Value Factor Present Value A A $57,000.00 9% 0.5019 B $19,000.00 % 7 0.5132 $9,750.80 $ $28,100.00 % 6 0.5346 D $16,000.00 14% 0.3506 $5,609.60
Regis Clothiers can borrow from its bank at 18 percent to take a cash discount. The terms of the cash discount are 3/22, net 40. a. Compute the cost of not taking the cash discount. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount
Take me to the text Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Annual Net Cash Flow Discount Rate Number of Payments Present Value of Annuity Factor Present Value of Annuity $ A $20,000.00 $ 10% 4.3553 B % 2 1.6901 $82,814.90 $ C $21,000.00 6% 7.3601 D $8,000.00 9% 4.4859 $35,887.20
Solve for the missing item in the following. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Principal Interest rate Time SImple interest 5.25% 3 1/2 years $300
Cost of giving up cash discounts Determine the cost of giving up the cash discount under each of the following terms of sale. (Note: Assume a 365-day year.) 3/10 net 90 1/10 net 60 3/10 net 30 4/10 net 180
You have estimated spot rates as follows: r₁ = 6.10%, r2 = 6.50%, r3 = 6.80 %, r4 = 7.00 %, r5 = 7.10%. a. What are the discount factors for each date (that is, the present value of $1 paid in year t)? (Do not round intermediate calculations. Round your answers to 3 decimal places.) Year 1 2 3 4 5 Discount Factors b. Calculate the PV of the following $1,000 bonds assuming an annual coupon and maturity of: (i) 6.1%, two-year bond; (ii) 6.1%, five- year bond; and (iii) 11.1%, five-year bond. (Do not round intermediate calculations. Round your answers to 2 decimal places.) b-i 6.10%, two-year bond b-ii 6.10%, five-year bond b-iii 11.10%, five-year bond Present Value
Suppose you are offered $7,100 today but must make the following payments: 1 2 Cash Flows ($) O $7,100 1-3,800 2-2,500 3 -1,600 4 -1,400 Year 4 6. 7 9. 10 11 What is the IRR of this offer? (Do not round intermediate calculations. Enter your ans 12 a. 13 14 15 16 17 b. If the appropriate discount rate is 10 percent, should you accept this offer? 18 19 multiple choice 1 20 21 Reject Ассept 22 23 24 25 C. If the appropriate discount rate is 19 percent, should you accept this offer? 26 27 multiple choice 2 28 29 Аcсept Reject 30 31 32 33 What is the NPV of the offer if the appropriate discount rate is 10 percent? (A negative ar What is the NPV of the offer if the appropriate discount rate is 19 percent? (A negative ar 34 d-1. 35 d-2. 36
Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Future Value (Single Payment) $57,000.00 $19,000.00 $28,100.00 Discount Rate Answer% Answer% 14% Number of Years Present Value Factor Present Value A 9% B Answer 7 с 0.5132 6 0.5019 $Answer $9,750.80 SAnswer 0.5346 D $16,000.00 Answer 0.3506 $5,609.60
Solve for the missing item in the following. Note: Do not round intermediate calculations. Round your answer to the nearest cent. Principal Interest rate 5.25% Time 4 3/4 years Simple interest $ 390
Simmons Corporation can borrow from its bank at 21 percent to take a cash discount. The terms of the cash discount are 2.5/18, net 55. a. Compute the cost of not taking the cash discount. Note: Use a 360-day year. Do not round intermediate calculations. Input your final answer as a percent rounded to 2 decimal places. Cost of not taking a cash discount b. Should the firm borrow the funds? O No O Yes %
M An electric drill is listed for $507.92 less 27%, 19%, 2%. (a) What is the net price? (b) What is the total amount of discount allowed? (c) What is the exact single rate of discount that was allowed? (a) The net price is $ (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
Calculate the net present value of the machine assuming a 6% discount rate. (If the net present value is negative, use either a negative sign preceding the number eg-45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer to O decimal places, e.g. 125.) Net Present Value $ Should the company buy the machine based on your results? Further investigation reveals that there would be a sales increase of $7,000 annually as a result of an increase in quality from the customer's perspective and a cost reduction of $2,800 annually as a result of lower warranty claims. Considering these additional facts, calculate the Net Present Value of the machine. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided, e.g. 1.25124. Round present value answer…

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