Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
An owner can lease her building for $120,000 per year for three years. The explicit cost of maintaining the building is $40,000, and the implicit cost is $55,000. All revenues are received, and costs borne, at the end of each year. If the interest rate is 5 percent, determine the present value of the stream of: Instructions: Do not round intermediate calculations. Round your final calculation to two decimal places. a. Accounting profits. $ b. Economic profits. $
ABC Service can purchase a new assembler for $15,052 that will provide an annual net cash flow of $6,000 per year for five years. Calculate the NPV of the assembler if the required rate of return is 12%.
Boeing has entered into a 10 year interest rate swap with Bank America with a notional principal of $500 million. Boeing has agreed to pay LIBOR – the floating rate side of the swap. Bank America has agreed to pay a fixed rate of 7%. Assume that next..
Tanner Tavern writes four checks a day for an average amount of $5,400 each. These checks generally clear the bank four days after they are written. In addition, the firm generally receives and deposits checks amounting to $18,700 each day. All depos..
Stockbrokers: a. Do not act as middlemen b. Cannot trade stock c. Charge commission for buying and selling d. Are always right in all their stock recommendations e. None of these
Municipal bonds are usually tax-free. Since investor’s car about after-tax return on their investment, these bonds have higher yield than bonds whose interest rate payments are taxable. Investors demand compensation for default risk in the form of ri..
Beginning three months from now, you want to be able to withdraw $3,100 each quarter from your bank account to cover college expenses over the next four years. If the account pays .53 percent interest per quarter, how much do you need to have in your..
You have just taken out a $22,000 car loan with a 6% APR, compounded monthly. The loan is for five years. When you make your first payment in one month, how much of the payment will go toward the principal of the loan and how much will go toward inte..
The AA Corporation expects next year's net income to be $20 million. The firm's debt ratio is currently 50%. AA has $10 million of profitable investment opportunities, and it wishes to maintain its existing debt ratio. According to the residual distr..
Consider an asset with a beta of 1.2, a risk-free rate of 5%, and a market return of 13%. What is the reward-to-risk ratio in equilibrium? What is the expected return on the asset?
What is the present value of an annuity of $7,100 per year, with the first cash flow received three years from today and the last one received 25 years from today? Use a discount rate of 7 percent.
The total book value of the firm’s equity is $17 million; book value per share is $34. The stock sells for a price of $45 per share, and the cost of equity is 15%. The firm’s bonds have a face value of $6 million and sell at a price of 120% of face v..
Assume you have a subsidiary in Australia. The subsidiary sells mobile homes to local consumers in Australia, who buy the homes using mostly borrowed funds from local banks. Your subsidiary purchases all of its materials from Hong Kong. Explain wheth..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd