Reference no: EM13718577

Question 16

The ABC Company is considering a new project which will require an initial cash investment of $14,413. The projected cash flows for years 1 through 4 are $7,257, $9,782, $8,473, and $4,461, respectively. If the appropriate discount rate is 4%, compute the NPV of the project.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points
Question 17

If you can triple your money in 18 years, what is the implied rate of interest? Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box..

1 points
Question 18

023A:

If you can double your money in 15 years, what is the implied annual rate of interest, given that compounded semi-annually? Note: give your answer in percentages. Note: Do not put % sign in your answer. Simply write the number in percentages in the answer box.

1 points
Question 19

Barrett Pharmaceuticals is considering a drug project that costs $167,489 today and is expected to generate end-of-year annual cash flows of $11,463, forever. At what discount rate would Barrett be indifferent between accepting and rejecting the project?

Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

1 points
Question 20

How much do you need to invest today in order to have $8,190 at the end of 20 years if you are sure to earn an interest at the rate of 14%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points
Question 21

026:

Say, you deposit $1,802 in a bank for 16 years. What is the amount you will have in the bank at the end of 16 years if interest of 3 % for first 6 years and interest of 8 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points
Question 22

027:

Say, you deposit $1,486 in a bank for 19 years. What is the amount you will have in the bank at the end of 19 years if interest of 5 % compounded monthly for first 6 years and interest of 10 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points
Question 23

How many years it will take you to quadruple (means 4 times) your money if you can earn 4.14% each year? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points
Question 24

Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6th year.

Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.

1 points
Question 25

If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)?
a.
$770
b.
$828
c.
$1,176
d.
$833
e.
$827

1 points
Question 26

How much do you need to invest today in order to have $8,752 at the end of 22 years if you are sure to earn an interest at the rate of 13%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.

1 points
Question 27

The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $10,828 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $157,258. At what interest rate would this be a fair deal? Just enter the number in percentages up to 2 decimal points. Do not enter % in the answer box.

1 points
Question 28

In order to buy a house, you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the balance remaining at the end of 5 years.

Do not enter the symbol $ in your answer. Enter your answer as a positive number. Simply enter the answer rounded off to two decimal points.

1 points
Question 29

How many years it will take you to double your money if you can earn 14% each year, given that compounding is quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points
Question 30

How many years it will take to grow your money from $3,576 to $6,401 if you can earn an interest of 16% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.

1 points
Question 31

What is the effective rate of 16% compounded monthly?

Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.

1 points
Question 32

Kelly starting setting aside funds 6 years ago to buy some new equipment for her firm. She has saved $6,140 each quarter and earned an average rate of return of 4 percent. How much money does she currently have saved for this purpose?

1 points
Question 33

Assume interest rate of 5%. A company receives cash flows of $106,444 at the end of years 4, 5, 6, 7, and 8, and cash flows of $297,138 at the end of year 10. Compute the future value of this cash flow stream.

Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

1 points
Question 34

What is the future value of $11,866 for 9 years at 9 percent if interest is compounded semi-annually? Note: Do not enter "$" in your answer. Simply write down the number that you get as your answer.

1 points
Question 35

Assume interest rate of 9%. Suppose that you receive $100,518 at the end of each year for 4 years. Suppose that this cash flow starts at the end of the fourth year. Compute the present value.
Do not enter the symbol $ in your answer. Simply enter the answer rounded off to two decimal points.

1 points
Question 36

What is the future value of quarterly payments of $779 for 18 years at 4 percent?