A $10,000 in student loans at 6% simple interest per year is paid back in one lump sum at the end of a 5 year grace period (i.e., interest is accrued but no payments are made). What is the amount of the lump sum payment at the end of year 5?
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What is capital budgeting? Why are capital budgeting decisions so important to businesses? b. What is the purpose of placing capital projects into categories such as mandatory y replacement or expansion of existing products, ser- vices, or markets? c..
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Pierce, an independent auditor, was engaged to audit the financial statements of Mayfair Construction Incorporated for the year ended December 31, 20X3. Mayfair's financial statements reflect a substantial amount of mobile construction equipment used..
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A bank has cash of $3 million, reserve deposits at the Federal Reserve of $35 million, transaction deposits of $375 million, non-personal time deposits of $150 million. Calculate the bank’s required reserves, excess reserves, and total reserves.
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Kaelea, Inc., has no debt outstanding and a total market value of $117,000. Earnings before interest and taxes, EBIT, are projected to be $8,300 if economic conditions are normal. Calculate earnings per share, EPS, under each of the three economic sc..
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Air Spares is a wholesaler that stocks engine components and test equipment for the commercial aircraft industry. A new customer has placed an order for eight high-bypass turbine engines, which increase fuel economy.
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The list price of a car is $8760. It is available at either a 10/20/5 or a 35/30 trade discount series. Which trade discount series gives the better deal? By how much?
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A project has the following cash flows: Year Cash Flow 0 $ 40,500 1 – 19,500 2 – 30,500 What is the IRR for this project? (Round your answer to 2 decimal places. (e.g., 32.16)) IRR % What is the NPV of this project, if the required return is 10 perce..
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A stock sells for $30. The next dividend will be $6 per share. If the return on equity ROE is a constant 15% and the company reinvests 20% of earnings in the firm, what must be the opportunity cost of capital?
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The beach house has sales of $784, 000 and profit margin of 8 percent. The annual depreciation expense is $14, 000. What is the amount of the operating cash flow if the company has no long-term debt?
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Sloan Transmissions, Inc., has the following estimates for its new gear assembly project: price = $2,900 per unit; variable costs = $580 per unit; fixed costs = $5.2 million; quantity = 88,000 units. Suppose the company believes all of its estimates ..
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Finefodder’s analysts have come up with the following revised estimates for the Gravenstein store: Range Pessimistic Expected Optimistic Investment $ 4,920,000 $ 3,600,000 $ 3,200,000 Sales 14,000,000 20,000,000 22,000,000 Variable costs as % of sale..
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