Calculate the fw

Assignment Help Finance Basics
Reference no: EM13302902

A small company purchased now for $23,000 will lose $1,200 each year the first four years. An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000.

a. Determine the IRR
b. Calculate the FW if MARR = 12%
c. Calculate the ERR when externeal reinvestment rate per period is 12%

 

Reference no: EM13302902

Questions Cloud

Determine what is the volume change of the tube : a circular aluminum tube of L=600 mm is loaded in compression by forces P. The outside and inside diameters are d2=75 mm and d1=63mm, respectively. A strain Gage is placed on the outside of the tube to measure normal strains in the longitudinal di..
What is the yield to the investor : A U.S. government bond matures in 10 years. Its quoted price is now 97.8, which means the buyer will pay $97.80 per $100 of the bond's face value. The bond pays 5% interest on its face value each year.
What would be the the depth of water im millimeters on land : a tank contains 650 cubic feet of water.the water will be applied on 7 acres of land. What would be the the depth of water im millimeters on the land assuming that there are no losses
How many of camrys would count as a part of u.s. gdp : Provide an economic explanation - How many of Camrys would count as a part of U.S. GDP - The government imposed capital controls that prohibit foreign borrowing and lending by domestic residents when the current account was in surplus.
Calculate the fw : An additional $8,000 invested in the company during the fourth year will result in a profit of $5,500 each year from the fifth year through the fifteenth year. At the end of 15 years, the company can be sold for $33,000.
How many moles of water molecules are contained in the glass : A cylindrical glass of water (H2O) has a radius of 4.38 cm and a height of 12.3 cm. The density of water is 1.00 g/cm3. How many moles of water molecules are contained in the glass
How much extra can a motorist pay for a fuel efficient : Assume that the car will be driven 120,000 miles over its lifetime of 10 years. The motorist can earn 6% per year on investment.
Determine the volume of water infiltrated on the field : a 30-acre field received 4 inches of rain with 35% runoff.Determine the volume of water infiltrated on the field ( assume all the water that doesn't runoff infiltrates )
Determine the depth of water in the pond : water is pumped into an irrigation pond at 250 gal/min for 24 hours. the pond area is 2500 square feet. Determine the depth of water in the pond .Provide answer in ft and m

Reviews

Write a Review

Finance Basics Questions & Answers

  What coupon rate should airjet best parts set

AirJet Best Parts, Inc. would like to issue 20-year bonds to obtain remaining funds for the new Mexico plant. The company currently has 7.5% semiannual coupon bonds in the market that sell for $1,062 and mature in 20 years.

  Calculate the firm annualized cost of funds

MZC Ltd draws $2,000,000 in 180-day BABs at the current market rate of 7.0 percent per annum What proceeds will the firm receive from discounting the bill if the bank charges an acceptance fee of 1.5 percent?

  Determine the additional funds needed

Determine the additional funds needed. Round your answer to the nearest dollar. Total assets $ AFN $ What is the resulting total forecasted amount of notes payable? Round your answer to the nearest dollar.

  What is the maximum amount you should pay for the annuity

You are offered an annuity that will pay $10,000 a year for 10 years starting after 5 years have elapsed. If you seek an annual return of 8 percent, what is the maximum amount you should pay for the annuity.

  What is the projected cash flow in year 2

A certain project is expected to produce cash flows over the next three years. there is a 50% chance that the project will produce a cash flow of 1340 in year 2 and a 50% chance it will produce a cash flow of 1000. what is the projected cash flow ..

  What is the present value of these cash flows

Conoly Co. has identified an investment project with the following cash flows. If the discount rate is 10 %, what is the present value of these cash flows? What is the present value at 18%? At 24 %? Year Cash Flow 1 - $960 2 - $840 3 - $935 4 - $1..

  Bonds nominal yield to maturity

What is the current yield on these bonds and  What is the bond's nominal yield to maturity.

  What is the projects net present value

Using decision-tree analysis, does it make sense to wait 2 years before deciding whether to drill?

  Compare and evaluate these different types of income

how would you use the information you have learned in this class to develop your own investment portfolio? What investments would you hold, in what proportions, and why? What is your level of risk aversion?

  What is toombes cost of retained earnings

what is toombes cost of retained earnings and new equity respectively?

  How much responsibility should a corporate officer have

Is it ever appropriate in the business world to hold a superior liable for a subordinate's criminal action (as may often be the case in a military structure), or should we each just be responsible for our own actions?

  Finance problems on cash flow and discount rate

If the discount rate is 10 percent and the projects are mutually exclusive, which of the following is true, If the discount rate is 7%, which of the following is true:

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