ou are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year? a. 25% b. 5% c. 10% d. 15%
Q: ates of Return You are considering an investment in ether indvidual stocka or a porfolo of stocka. T...
A: Given Years = 2015, 2016, 2017, 2018, 2019 FA = -22.00% , 34.00 , 29.00, -2.00, 30.00 FB = -4.00%, 1...
Q: What is the future worth of P8500 deposited at the end of every month for 3 years if the interest is...
A: Future value of a present value is the value of that amount after taking into account the time value...
Q: 1. To set up wastewater plants and connect the trailer and low-income households to th sewerage pipe...
A: The cost benefits analysis is used in government longer term projects to determine the feasibility a...
Q: A project has annual cash flows of $4,000 for the next 10 years and then $8,500 each year for the fo...
A: Calculate the Initial investment as follows: At IRR, the PV of cash inflows is equal to the initial ...
Q: this project acceptable?
A: The return is the profit or loss that an investor anticipated on an investment. It is to be calculat...
Q: Find the term of the ordinary annuity in years and months (from 0 to 11 months). Present Value $20,0...
A: Present value of annuity = $20000 Quarterly rent (Q) = $900 r = 4.7% per annum = 1.175% per quarter ...
Q: If Php 5,000 becomes Php 9,734 after 12 years, when invested at an unknown rate of interest compound...
A: Future Value refers to the value of the current asset or investment or of cash flows at a specified...
Q: The number of stock exchange s in the Philippines?
A: The Philippine Stock Exchange Composite Index (PSEi) is a major stock market index that tracks the p...
Q: Executing an order. Ask price was Php10.00 9:05am - the price of the stock was Php9:00 9:15am - the ...
A: An order will get executed if the price of stock will be more than or equal to the ask price.
Q: 9-16. (Weightea average cost of capital) The capital structure for the ABC Corporation is provided b...
A: Solution:- Weighted Average Cost of Capital means the average minimum return required by all the fun...
Q: Which of the following is not a correct statement about diversification? Most diversification benefi...
A: Meaning of Diversification It is a financial term in which the capital is allocated in such a manner...
Q: Zoey Bettincourt gets a $300,000 loan for a townhouse. She secures a 5/1 ARM at an initial interest ...
A: Loan amount = $300,000 Initial interest rate = 2.75% Initial payment = $1,224.72 After 5 years, Inte...
Q: Explain the foreign currency swaps and why are they undertaken? Explain the functional currency and ...
A: A foreign currency swap, also known as an FX swap, is an agreement between two foreign parties to ex...
Q: w much money will need to invest today e of 6 % and will be withdrawn in 3 year: 5425? 40775 45234 4...
A: Investment today required to achieve the future value would be the present value of future consideri...
Q: Compute the NPV statistic for Project U if the appropriate cost of capital is 10 percent. (Do not ro...
A: Time Cash flow 0 -1000 1 350 2 1480 3 -520 4 300 5 -100 Cost of capital = 10%
Q: leposited $10,000 today. He plans to withdraw $700 every year. For how long can she withdraw from th...
A: The present value of annuity is equivalent amount today considering period of annuity and prevailing...
Q: Assuming that revenues stayed flat (meaning the company did not try to increase sales by the 12 perc...
A: Profit depends on the expenses and if expenses decreases the profit will increase but if expenses in...
Q: deposited $10,000 today. He plans to withdraw S700 every year. For how long can she withdraw from th...
A: The present value of future payments will be amount withdrawn each year after deduction interest and...
Q: What is the clientele effect and how does it impact on dividens policy for the company? If the compa...
A: What is the Clientele Effect? The clientele effect is a theory that states that different policies a...
Q: If the depreciation on year 8 is 15,282 and the book value on the same year is 424,684 and money is ...
A: Depreciation: A depreciation is a non-cash expenses for the company. The depreciation expenses is ch...
Q: Present Value of an Annuity On January 1, you win $1,600,000 in the state lottery. The $1,600,000 p...
A: Present Value of an Annuity The amount of money you'd have to invest right now to equal the sum of a...
Q: An engineer invests $5000 at the end of every year for a 25 year career. If the engineer wants $2mil...
A: The interest rate earned in investment The amount of interest earned from assets that pay the holde...
Q: 1. Three mutually exclusive investment alternatives are being considered. The estimated cash flows f...
A: Mutually Exclusive Projects : It is the concept capital budgeting process that a single project out...
Q: An investment is providing a scholarship worth $4720 every year indefinitely. What is money invested...
A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of inter...
Q: You have decided that you want to be a millionaire when you retire in 45 years. a. If you can ear...
A: The value of current payment or upcoming flow of payments at any future date when flow of payment te...
Q: A contract can be fulfilled by making an immediate payment of $21,100 or equal payments at the end o...
A: Solution:- When an equal amount is made at end of each period, it is called as ordinary annuity. Now...
Q: 9.4 (LG 9.2, 9.3, 9.4) An investment pays $10 000 in five years. a. If inflation is 10 percent per y...
A: Since you have asked a multiple subpart question, we will answer the first three subparts for you. A...
Q: ABC distributes a 20% stock dividend. Before distributing the stock dividend, ABC had 20 million sha...
A: Shares outstanding = 20 million Stock dividend = 20%
Q: Acme Food Co. Ltd. is considering the introduction of a new product Smackers. The firm has gathered ...
A: NPV Net present value (NPV) is the present value of all cash inflows less the present value of cash ...
Q: A construction company agreed to lease payments of $649.32 on construction equipment to be made at t...
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the questio...
Q: The Hub Store at a university in eastern Canada is considering purchasing a self-serve checkout mach...
A: Saving on machine = $43,500 Cost of machine = $410,000 Time period = 10 years Operating cost per yea...
Q: broker fairly pricing the bond
A: A bond is a fixed income instrument that represents the loan given by the investor to the company ...
Q: A corporation creates a sinking fund in order to have $630,000 to replace some machinery in 8 years....
A: Monthly Loan Payments: These are periodic payments made by the borrower for taking the loan from th...
Q: friend who knows you study accounting approaches you to discuss share market investment strategies. ...
A: Investing in the share market is quite risky and complex so there is need of understanding of market...
Q: During the month of February, direct labor cost totaled PhP650,000 and direct labor cost was 40% of ...
A: Answer - Calculation of manufacturing overhead - Direct labor cost total = 650,000 Its equal prime...
Q: How long will it take to save $2581.00 by making deposits of $227.00 at the end of every month into ...
A: It can be calculated using =NPER(rate,pmt,pv,[fv],[type]) Rate The interest rate for the loan. Npe...
Q: ikely that plane tickets will increase 6.5% in each of the next three years. The cost of the plane t...
A: The present value of the future money required considering the interest rate and period of the money...
Q: Armed with this information, compute: The minimum required return by Cross-Ocean’s debtholders The ...
A: Minimum Required Return: It represents the expected required return to the investors for investing ...
Q: Do you think investors should practice dollar cost averaging when investing their money? Why or why ...
A: Dollar-Cost Averaging: Dollar-Cost averaging is an investment approach that involves investing an an...
Q: months. The interest rate is 7% compounded semi-annua determined to be 20.1488. Find the size of the...
A: Loans are paid the periodic payments these payments carry the payment for the interest and payment o...
Q: Renfro Rentals has issued bonds that have a 7% coupon rate, payable semiannually. The bonds mature i...
A: Face value (FV) = $1000 Coupon rate = 7% Semi annual coupon amount (C) = 1000*0.07/2 = $35 Years to ...
Q: 1. The NPV for each projects 2. The ANPV for each investment projects 3. Payback period for all proj...
A: Net present value (NPV) of an alternative refers to the variance between the initial investment or p...
Q: hat should be the prices of the following preferred stocks if comparable securities yield 8 percent?...
A: Preferred Stock: These are company stocks having the properties of both debt and equity instruments...
Q: You are planning to save for retirement over the next 35 years. To do this you will invest $710 per ...
A: The deposits of $710 and $310 made in two accounts will be considered annuity as amount is same over...
Q: For the next five years, Chard invests 50000 in a bank account at 12%interest. Will the original pri...
A: Principal Amount = 50,000 Interest Rate = 12% Inflation Rate = 75% Time Period = 5 Years
Q: 1. The minimum required return by Cross-Ocean’s debtholders 2. The minimum required return by Cross...
A: Weighted average cost of capital (WACC) refers to the combined cost of company's capital from all th...
Q: A company has £6 million available and three possible projects, none of which are divisible: Projec...
A: Let's find the profitability index (PI) of each project Available budget = £6 million
Q: Find the term of the following ordinary general annuity. State your answer in years and months (from...
A: Present value (PV) = $10,300 Monthly payment (P) = $330 Interest rate = 3% Monthly interest rate (r)...
Q: A construction company agreed to lease payments of $649.32 on construction equipment to be made at t...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: An $90,000 loan is amortized by payments of $1850 at the end of every six months at a rate of 2% com...
A: Mortgage loan is a type of loan where funds are availed against an asset as collateral to the lender...
You are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year?
| a. |
25% |
|
| b. |
5% |
|
| c. |
10% |
|
| d. |
15% |
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 1 images
- You are considering purchasing a refrigerator that costs $2,500 up front or $3,000 in 1 year. At what discount rate would it be a smarter deal to pay the $3,000 next year? Use Rule 72 a. 25% b. 10% c. 5% d. 15%You can purchase an optical scanner today for $400. The scanner provides benefits worth $67 a year. The expected life of the scanner is 10 years. Scanners are expected to decrease in price by 20% per year. Suppose the discount rate is 11% Should you purchase the scanner today? multiple choice 1 Yes No When is the best purchase time? multiple choice 2 Wait for 4 years Wait for 6 years Wait for 5 yearsYou are thinking about purchasing an investment from Get-Rich-Quick Investmemnt company. If you buy the investment, you will receive $50 every month for five(5)years. Payment will be made at the end of each month. If your required rate of return is 9% how much should you be willing to pay for this investment? Group of answer choices $4,632.87 $2,735.25 $2,525.10 $2,408.67
- K You have the choice of receiving $100,000 now or $43,000 now and another $70,000 three years from now. In terms of today's dollar, which choice is better and by how much? Money is worth 6.5% compounded annually Which choice is better? A. They are equal in value. B. The choice of $43,000 now and $70,000 in three years is better. OC. The choice of $100,000 now is better. The better choice is greater than the alternative choice by $ in terms of today's dollar (Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.) 0 nYou hope to buy your dream car four years from now. Today, that car costs $54,500. You expect the price to increase by an average of 3.1 percent per year over the next four years. How much will your dream car cost by the time you are ready to buy it? A. $58,340.00 B. $58,666.67 C. $61,578.79 D. $61,818.02 E. $61,023.16 please type out all of your workQuestion A .What would be the net present value of a microwave oven that costs $185 and will save you $74 a year in time and food away from home? Assume an average return on your savings of 7 percent for five years. Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
- You have just sold your car for $50,000, but under the sales agreement, it won't receive the $50,000 until 5 years from today. What is the present value of $50,000 to be received 5 years from today if the discount rate is 7 percent annually? a. $35,445.94 b. $35,270.25 C. $50,000.00 d. $35,649.31 e. $32,500.00Suppose that you are thinking about buying a car and have narrowed down your choices to two options. The new-car option: The new car costs $32,000 and can be financed with a five-year loan at 6.95%. The used-car option: A three-year old model of the same car costs $17,000 and can be financed with a five-year loan at 5.01%. r P n What is the difference in monthly payments between financing the new car and financing the used car? Use PMT = - nt 1- 1+ The difference in monthly payments between financing the new car and financing the used car is $ (Round to the nearest cent as needed.)You are considering the purchase of new living room furniture that costs $1,140. The store will allow you to make weekly payments of $25.12 for one year to pay off the loan. What is the EAR of this arrangment? Multiple Choice 27.39% 29.41% 32.99% 31.42%
- You need to have $150,000 in 10 years to buy a house. You already have $70,000. What would be the interest rate you would need?. a. 7.85% b. 7.76% c. 7.92% d. 8.08% e. 8.00%If you are planning to buy a car worth $35,000 in 12 years, how much should you save up now if the interest rate is 11%? Select one: a.$10,004 O b.$9,324 c.$10,367 O d.$9,785Your friend offers you an investment opportunity that would yield $100 per year for the next 3 years. Using a discount rate of 10%, decide whether this is a good investment opportunity. What is the present value of this investment? a. $200.05 b. $250 c. $248.68 d. 258.20
