Reference no: EM132484021
Q1. You are going to choose between two investments. Both cost $50,000, but investment A pays $25,000 a year for 3 years while investment B pays $20,000 a year for 4 years. If your required return is 12%, which should you choose? Justify your answer by using NPV and IRR.
Q2. If you put $300 per month into an account earning 4% annual interest, how much money would you have in the account in 30 years?
Q3. Your friend agrees to pay you $1,000 every month for the next 12 months. The first payment will be one month from today. The relevant effective annual interest rate is 12.36%. What is the present value of this annuity?
Q4. A firm is thinking whether to carry on with an investment project that requires an initial outlay of USD 100,000. The after-tax cash inflows are estimated to amount to USD 20,000 at the end of the first and second year and to USD 30,000 at the end of the third, fourth, and fifth year. The required rate of return for the project is 4.4%. calculate NPV for the project?
Q5. Given a 6 percent interest rate, compute the year 6 future value of deposits made in years 1, 2, 3, and 4 of $1,200, $1,400, $1,400, and $1,500.
Q6. John purchase a house for $150,000 by getting a mortgage for $135,000 and paying a $15,000 down payment. If he gets a 15-year mortgage with a 6% interest rate, what are the monthly payments?
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Demonstrate the application and treatment of each
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Prepare the journal entries to record the initial investment
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Computing the dollar cost-supersimple inc
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How do you see your role in profession evolving through time
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Compute the year 6 future value of deposits
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How do journalize the entries on january record
: How do journalize the entries on January 1, 2018, to record the partners' initial investments? Jack and Will decide to form the JW Partnership.
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Identify any overarching implications shown in the studies
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Describe the sources available for asset management
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Prepare the adjusting entries using for january for the rent
: Prepare the journal entries.Prepare the adjusting entries using for January 31st for the rent and Depreciation expense and Insurance
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