Find the present value of a deferred annuity of P760 every six months for 5 years that is deferred 3 years, if money is worth 4% compounded quarterly.
Q: On 3 August 2023, Sunny Smiles Ltd had a balance of $23,500 in their options account. This reflected…
A: Balance in options accounts $23,500. Number of options 50000
Q: The current price of a stock is $22, and at the end of one year its price will be either $29 or $15.…
A: Here, Current Price = $22 Up movement = $29 Down movement = $15 Annual risk-free interest rate = 3%…
Q: Mr. X lends $20,000 to Mr. Y on May 6, 2021. A promissory note is written by Mr. Y at a simple…
A: Promissory note is a negotiable instrument which creates the obligation to pay on one party and…
Q: A guy deposited P4,000, P4,500 and P5,000 at the end of the 2nd year, 3rd year and 4th year,…
A: Year 2 deposit = P4000 Year 3 deposit = P4500 Year 4 deposit = P5000 Interest rate = 0.09
Q: Jean deposited P1,000, P1,500 and P2,000 at the end of the 2nd year, 3rd year and 4th year,…
A: Year Deposit 2 1000 3 1500 4 2000 Interest rate = 0.06
Q: What equal amounts of money will have to be deposited 5, 8 and 11 years from now, if you want to…
A: Future worth is the amount that an investor expects from the cash flows in each period. Future worth…
Q: QUESTION 1 You are approved for a loan of $25,000 at 5.3% compounded quarterly If you plan to pay…
A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at…
Q: Marginal Incorporated (MI) has determined that its before-tax cost of debt is 5.0% for the first $74…
A: Solution: In the given case,calculation of marginal cost of capital will consider cost of internal…
Q: for this equipment. 6. Calculating Salvage Value Consider an asset that costs $635,000 and is…
A: Cost of assets = $635,000 Life = 8 Years Annual depreciation = 635000/8 = $79375 Life used = 5 Years…
Q: What is the relationship between return on capital investment and the risk associated with the…
A: Return on invested capital is referred as an amount of the funds of the corporation, which helps in…
Q: For a farmer wishing to hedge the sale of wool in 6 months time which of the following stateme is…
A: The parties to forward contracts are obligated to purchase or sell the underlying securities at a…
Q: 4. A note having a face value of P9,300 was discounted at 11%. If the proceeds were 8,788.50. Find…
A: In order to calculate the term of the loan in months, where, other values viz. face value, discount…
Q: In the accompanying diagram, what is the value of K on the left-hand cash-flow diagram that is…
A: Interest rate (i) = 10% Let's equate the future values of cashflows at year 7 in both the diagrams…
Q: 2. Consider stocks A and B with the following monthly returns: Stock 1 2 3 4 5 3% A B -2% 1% 4% 6%…
A: Calculation of portfolio expected return Portfolio expected return is the weighted average expected…
Q: analysis) The most recent balance sheet of Raconteurs, Inc., (in millions) is found here:…
A: Current ratio= Current assets/ Current liabilities. Quick ratio= Current assets- Stock - Prepaid…
Q: Mannix Corporation stock currently sells for $100 per share. The market requires a return of 11…
A: P0 = D0(1 + g) / (R – g) D0 = P0(R – g) / (1 + g) D0 = Most recent dividend per share P0 = Stock…
Q: A contract has been signed to lease a building at P50, 000 per year with an annual increase of P1,…
A: First year lease (L1) = P 50000 L2 = P 51000 L3 = P 52000 L4 = P 53000 L5 = P 54000 r = 7%
Q: For the nonconvenbional net cash low series shown, the xternal rate of netuen per ye usg the MsR…
A: Here, Investment Rate is 20% Borrowing Rate is 8% Net cash Flows are as follows: Year Net Cash…
Q: The expenses included in the fabrication of a wind turbine for a planned Wind Farm is $73,000…
A: Investment needed today (X) = $16000 First year cost saving (S1) = $73000 - $58000 = $15000 S2 to S5…
Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery…
A: CALCULATING WEIGHTED AVERAGE COST OF CAPITAL (WACC) Cost of equity = D1P+ g where D1 is the expected…
Q: If the coupon rate of a bond is 3.05% and the yield to maturity is 6.48%, and if a bondholder has a…
A: After-tax yield = Yield to maturity(1 - Tax rate) where, Yield to maturity = 6.48% Tax rate = 21%
Q: Hubbard Industries just paid a common dividend, D0, of $1.60. It expects to grow at a constant rate…
A: Share price: Share price is the current market price of the share. It is the price of the share at…
Q: What are the 3 stages of a typical firm's business cycle in terms of ROIC and WACC? In which stage…
A: A call option is an agreement between a buyer and a seller to buy a specific stock at a specific…
Q: Sam and Mary purchased a two-bedroom town house for $599 000 with a 10% down payment. The mortgage…
A: “Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…
Q: Carson Electronics’ management has long viewed BGT Electronics as an industry leader and uses this…
A: To Find: Debt ratio Average collection period Fixed asset turnover Return on equity
Q: 1. Relevant Cash Flows Kenny, Inc., is looking at setting up a new manufacturing plant in South…
A: Whenever a project is evaluated for investment all the current and future cash flows are considered.…
Q: Project Evaluation Kolby's Korndogs is looking at a new sausage systém vith an installed cost of…
A: The net present value is the difference between the present value of cash flow and initial…
Q: Greene, Inc.'s balance sheet indicates that the book value of stockholders' equity (book value per…
A: Market-to-book ratio is simply a comparison of book value with market value. It can be calculated…
Q: 3. Complete the decision rule for the IRR method. If then the project is economically justified.
A: To select the project based on IRR, IRR should be greater than required rate of return. If IRR is…
Q: A key feature of Kaizen is that improvements are achieved by making
A: Given statement is Features of kalzen is improvements by making.
Q: 1. You are the new hired Manager of a Multi-National CorporationMNC in charge of the foreign…
A: Interest rate parity is a no-arbitrage condition that describes an equilibrium state in which…
Q: Consider the two mutually exclusive investment projects given in the table below for which MARR =…
A: The internal rate of return (IRR) is the rate of return that equates the present value of future…
Q: You wish to invest ₱10,000 for a period of 5 years. Which of the following investments would be best…
A: Bank A - Simple Interest Future Value = (Principal + ( Principal * Interest rate * Number of…
Q: 3. A stock price is currently $100. It is known that after 3 months it will either go up by 10% or…
A: Solution : If Value of Call was come lower as compared to Current price of call in market then…
Q: Kevin takes out a home loan for $250,000. Payments are made at the end of every month for 30 years.…
A: Amortized Loan: Amortized loan is a type of loan in which the borrower would pay periodic payments…
Q: Triangular Chemicals has total assets of $95 million, a return on equity of 37 percent, a net…
A: The sales can be calculated for by using the DuPont equation
Q: The 2018 Tax Reformation was deemed one of the largest in most recent years. What were the major…
A: The Tax Cuts and Jobs Act (TCJA), signed into law in late 2017, was the most significant tax reform…
Q: Air handling equipment that costs P12, 000 has a life of eight years with a P2, 000 salvage value.…
A: Initial cost (C) = P 12000 Salvage value (S) = P 2000 n = 8 years r = 4.5%
Q: Cross-Ocean Boats Ltd. is in the 30% tax bracket. It is interested in determining the minimum return…
A: (Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the…
Q: capitalized cost of an expenditure of P 200,000 at time 0, P 25,000 in years 2 through 5, and P…
A: Capitalized cost is present value of all cost that may occur in the future and are equivalent to all…
Q: A raffle is taking place and tickets are being sold for $5. Everyone who enters will have an equal…
A: The expected profit of a project is the amount of return that can be expected if it is chosen for…
Q: Consider a project with free cash flows in one year of $148,100 or $180,200, with each outcome being…
A: Given, cashflows at weak economy is $148,100 Cash flow at strong economy is $180,200 Cost of…
Q: When firms enter into loan agreements with their bank, it is very common for the agreement to have…
A: a) Current Ratio = Current Assets/Current Liabilities = 1,907,570,000/ 1,362,550,000 = 1.40
Q: Dearborn Supplies has total sales of $206 million, assets of $94 million, a return on equity of…
A: Net income = Profit margin * Sales = 0.078 * $206 million = $16.068 million Equity = Net income /…
Q: Jill Angel holds a $200,000 portfolio consisting of the following stocks. The portfolio's beta is…
A: Portfolio beta (PB) = 0.88 Stock A beta (AB) = 0.50 New stock beta (NB) = 1.45 Weight of stock A or…
Q: An entrepreneur needs thousand of dollars to launch the global to lend him the money today (n=0) at…
A: Effective rate is the rate of interest considering the impact of the compounding of the interest…
Q: otse Automotive is planning to expand its operation by planning to add a machine costing $90.000.…
A: Solution : Company Will choose Loan V/S Lease option which provide the lower Negative option.
Q: A certain end of year cash flows are expected to be P 7,000.00 at the end of the 3rd year, P…
A: Cashflows in year 3 (CF3) = P 7000 CF4 = P 9000 CF5 = P 11000 CF6 = P 13000 r = 15%
Q: Two years ago Agro Inc., purchased an ACE generator that cost $300,000. Agro had to pay an…
A: After tax proceeds from the sales of the assets will be the amount recovered from selling the…
Q: ower plant is considering two alternatives with regards to a hydraulic equipment which it needs.…
A: Present worth is present value of all cost of equipment and all cash flow from the equipment…
Step by step
Solved in 2 steps with 2 images
- You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityFind the present value of a deferred annuity of P4,800 every six months for 7 years, if the first payment is made in 4 years, and the money is worth 5.5% compounded semi-annually.Find the present value of deferred annuity of P 900 every 3 months for 5 years that is deferred 3 year, if money is worth 10% compounded quarterly.
- Find the present value of a deferred annuity of P 4,800 every six months for 7 years, if the first payment is made 4 years, and money is worth 11% compounded semi- annually.Suppose P1500 is deposited at the end of each year for the next 6 years in an account paying 8% interest compounded annually. Find the future value of this annuity.Find the amount and the present value of an annuity of P5,000 every end of 6 months for 12 years and 6 months if money is worth 5.25% compounded semiannually?
- Find the future value of an ordinary annuity of $700 paid at the end of each year for 6 years, if interest is earned at a rate of 5%, compounded annual. What is the future value?In a sequence of 10 annual payments of P2,000 each, the first one is due at the end of 6 years. Find the present and future value of the deferred annuity if money is worth 6% compounded annually.Calculate the rent of an annuity at 4% compounded semiannually if payments are made every half year and the future value after 12 years Is $30.000.
- The present value of a deferred annuity of P4,800 every six months for 7 years, with the first payment made in 4 years, and the money is worth 5.5% compounded semi-annually is _______.Find the future value of an annuity of P5,750 payable at the end of each quarter for 8 years if the rate of interest is 6% compounded bi-monthly. 4.Find the present value of an annuity of $6000 paid at the end of each 6-month period for 10 years if the interest rate is 4%, compounded semiannually. (Round your answer to the nearest cent.)$