Reference no: EM131041812
Quantitative Finance and Financial Markets
1. As an analyst covering the RAD Corporation, you are evaluating its research and developments (R&D) program for the current year. Management has announced that it intends to invest $1 million in R&D. Incremental net cash flows are forecasted to be $150,000 per year in perpetuity. RAD corporation's opportunity cost of capital is 10 percent. (a) State whether RAD's R&D program will benefit shareholders, as judged by the NPV rule. (b) Evaluate whether your answer to Part 1 changes if RAD Corporation's opportunity cost of capital is 15 percent rather than 10 percent.
2. As an analyst covering the RAD Corporation, you are evaluating its research and developments (R&D) program for the current year. Management has announced that it intends to invest $1 million in R&D. Incremental net cash flows are forecasted to be $150,000 per year in perpetuity. RAD corporation's opportunity cost of capital is 10 percent. (a) Write the equation determining the internal rate of return of the R&D program. (b) Calculate the IRR.
3. Suppose a T-Bill with a face value (or par value) of $100,000 and 150 days until maturity is selling for $98,000. What is the bank discount yield?
4. You need to find the present value of a cash flow of $1,000 that is to be received in 150 days. You decide to look at a T-bill maturing in 150 days to determine the relevant interest rate for calculating the present value. You have found a variety of yields for the 150-day bill. Following table presents this information: Short- Term Money Market Yields Holding period yield 2.0408% Bank discount yield 4.8% Money market yield 4.898% Effective annual yield
5. 0388% Which yields are appropriate for finding the present value of the $1,000 to be received in 150 days?
|
Explain the advantages of utilizing these research firms
: Describe specific experimentation and observational methods that could be used within your discipline to gather data. Include your rationale. Evaluate their effectiveness with respect to certain areas within your discipline.
|
|
Make and run an android mobile app on my mysql database
: I need help to make and run an android mobile app on my mysql database. I need professional help. The app connect with given database and show me the details including generated reports of product in my phone.
|
|
Evaluate their effectiveness with respect to certain areas
: Describe specific quantitative methods and tools that could be used within your discipline to gather data. Include your rationale. Evaluate their effectiveness with respect to certain areas within your discipline.
|
|
What is the purpose of benchmarking
: What is the purpose of benchmarking and how can benchmarking be used to improve supply chain performance? Give at least one industry example to illustrate your point. Kindly add reference to your post.
|
|
Quantitative finance and financial markets
: As an analyst covering the RAD Corporation, you are evaluating its research and developments (R&D) program for the current year. Management has announced that it intends to invest $1 million in R&D. Incremental net cash flows are forecasted to be ..
|
|
Which of these core customer service competencies reflects
: Which of these core customer service competencies reflects the notion that customer service employees need to seize opportunities to satisfy a customer request quickly?
|
|
Identify the boundaries of the risk management plan scope
: Scope of the Risk Management Plan. Define and identify the boundaries of the risk management plan scope. Risk Management Plan Components. Identify the components to be included in the Risk Management Plan.
|
|
Examples of projects that suffered from scope creep
: Create a WBS for a project of interest, such as building a house or planning a wedding. You do not have to select one of those two. In fact I encourage you to be creative. Describe the level of detail that should be included and the format of the WBS..
|
|
Describe specific qualitative methods and tools
: Describe specific qualitative methods and tools that could be used within your discipline to gather data. Include your rationale. Evaluate their effectiveness with respect to certain areas within your discipline.
|