Calculate the annual equivalent

Assignment Help Mathematics
Reference no: EM131919232

Project A has an NPV of 200000. The project is financed by borrowing at 7%pa. The cost of capital for Project A is 0.08. This rate is expressed as a decimal, e.g. so that .12 is equal to 12%. The project has 5 year life. Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. Calculate to the nearest dollar.

Reference no: EM131919232

Questions Cloud

Differentiate between open-end and closed-end mutual funds : Now imagine that you bought a mutual fund that had a beginning NAV of $10 per share. It paid dividends of $0.50 and distributed capital gains of $0.75.
Prepare journal entries to reflect percentage-of-completion : Prepare the journal entries to reflect the percentage-of-completion method for 2011: Construction costs for the year and Partial billings
Which of the given scenarios would lead to removal of bats : Which of the following scenarios would lead to removal of the bats? Check all that apply. Foster pays Johnston $50,000 to contribute to bat removal.
What is the socially optimal quantity of first-aid training : How many hours of first-aid training will occur? What is the socially optimal quantity of first-aid training?
Calculate the annual equivalent : Calculate the Annual Equivalent (AE). Your textbook calls this EAV, Equivalent Annual Value. Calculate to the nearest dollar.
Prepare the lower portion of corpus christi income statement : Prepare the lower portion of Corpus Christi's 2010 income statement, beginning with pretax income for continuing operations
What kinds of questions would you have for the cmo : What kinds of things will you consider? How would the types of products or services affect your answers?
What is the project npv : The annual operating cash flow is $51,197 and the cost of capital is 5% What is the project's NPV if the tax rate is 36%?
What are the primary operations management decisions : What are the primary operations management decisions in each of the following corporations? Consider the following processes that you frequently encounter.

Reviews

Write a Review

Mathematics Questions & Answers

  Name five x-values

Please show all work for this. Please type in all answers, and don't use images, it's easier for me to understand: 1. Name FIVE x-values for which the tangent function equals 0. 2. Name FIVE x-values for which the cosine function equals 0.

  Cmpute mean median range and standard deviation for body

statistics is a very powerful topic that is used on a daily basis in many situations. for example you may be interested

  Ground level to the top of post

Two posts, one 6m high and the other 9m high, stand 20m apart. They are to be stayed by two wires, attached to a single stake, running from the ground level to the top of each post. Where should the stake be placed to use the least wire?

  Problem regarding the process identification

Develop innovative and sustainable solutions to strategic and global operations management challenges. Apply theories, models, and practices of global operations management to address business problems. Communicate in a manner that is professional an..

  Discuss the annual life insurance premium of garrett townse

Compare the annual life insurance premium of Garrett Townse who is 30 years old, and purchases a $100,000, 10-year level term policy using a non-tobacco rate.

  Diabetes and unemployment

Diabetes and unemployment. A 2012 Gallup poll surveyed Americans about their employment status and whether or not they have diabetes.

  What is meant by measures of effectiveness

What is meant by "measures of effectiveness"? For the effectiveness analysis of a sport utility vehicle (SUV), list what you think would be the eight most important characteristics that should be exercised and measured in the analysis.

  Intensity per unit of area

Sound intensity, known as decibels, d, is calculated using:d = 9.8log IaI is the intensity per unit of area. a is faintest audible sound of the average human ear.

  What is the minimum score that qualifies for the scholarship

Scores are based on a normal distribution with a mean of 1500 and a standard deviation of 300. Clinton College would like to offer an honors scholarship to students who score in the top 10 percent of this test. What is the minimum score that quali..

  Find a confidence interval for the students who own a car

When 311 college students are randomly selected and surveyed, it is found that 116 own a car. Find a 99% confidence interval for the true proportion of all college students who own a car.

  Minimizing the cost of the material in a cylindrical can

A context for a modeling problem where you are given that xy = 120 and you are minimizing the quantity 2x + 6y.

  Simulate the system until specified calls are completed

Ambulances are dispatched at a rate of one every 15 ± 10 minutes in a large metropolitan area. Fifteen percent of the calls are false alanns.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd