Shipping and packing equipment acquisition proposal

Assignment Help Financial Management
Reference no: EM131333541

In a shipping and packing equipment acquisition proposal, Fleeing Stars Enterprise has worked out a deal on the interest rate with the vendor, Outahere Shipping. The equipment is being financed for 10 years with monthly payments.

The deal is as follows: The interest rate is 1% per month for first 30 payments. Rest of payments are at .75% per month. The equipment costs $1,000,000. Determine amount of 31st monthly payment:

A) $13,682 B) $13,014 C) $14,300 D) $12,700

Reference no: EM131333541

Questions Cloud

What is your estimate of stock current price : A company currently pays a dividend of $3.5 per share (D0 = $3.5). It is estimated that the company's dividend will grow at a rate of 20% per year for the next 2 years, and then at a constant rate of 8% thereafter. The company's stock has a beta of 0..
Definition for sporadic in epidemiology : What is the definition for sporadic in epidemiology?
What is likely to happen in the court case : A week later Denny trashes the bike, and he tells Lisa that he is not going to pay. Lisa sues Denny in court for breach of contract, and she learns that he is only 16. What is likely to happen in the court case
Principles a health care practitioner should follow : What principles a health care practitioner should follow during the participation in media?
Shipping and packing equipment acquisition proposal : In a shipping and packing equipment acquisition proposal, Fleeing Stars Enterprise has worked out a deal on the interest rate with the vendor, Outahere Shipping. The equipment is being financed for 10 years with monthly payments.
What is inbreeding depression : What is inbreeding depression? Please give some examples of inbreeding depression in dogs and cats?
Write the element which shows max. no. of oxidation states : which elements is a strong oxidising agent in +3 oxidation state and why?
Gene regulation relate to cancer development : 1. How is gene expression regulated (give three different forms of regulation mechanisms)? 2. How does gene regulation relate to cancer development?
Create job description and specifications for your dream job : Create a job description and specifications for your dream job.Design a compensation and benefits package related to your dream job.Rationalize your compensation and benefits package. Be sure to indicate the research and considerations that went in..

Reviews

Write a Review

Financial Management Questions & Answers

  Determine the security in each case

Determine the security in each case that would most likely have thehigher price. In each case, clearly and fully explain your answers.

  Compute the EPS and growth rate

We want to compute the EPS and growth rate of Ninni. It has 2 m shares outstanding and $80m of book value of equity. Ninni expects to sell $20m worth of sales and have EAT of $5m and keep 40% of its profit. Furthermore, it has $100m of assets. Its co..

  Assuming effective annual interest at rate

Payments of 200 due July 1, 2012 and 300 due July 1, 2014 have the same value on July 1, 2009 as a payment of 100 made on July 1, 2009 along with a payment made on July 1, 2013. Find the payment needed July 1, 2013 assuming effective annual interest ..

  What is the percentage price change of bonds

Bond J has a coupon rate of 6 percent and Bond K has a coupon rate of 12 percent. Both bonds have 20 years to maturity, make semiannual payments, and have a YTM of 9 percent. If interest rates suddenly rise by 2 percent, what is the percentage price ..

  What was the net profit on the call option

XYZ sold a call option on Canadian dollars for $.01 per unit. The strike price was $.76, and the spot rate at the time the option was exercised was $.82. Assume XYZ did not obtain Canadian dollars until the option was exercised. Also assume that ther..

  What is the standard deviation of two-asset portfolio

What is the standard deviation of a two-asset portfolio comprised of Stock A and Stock B if both Stock A and Stock B have a variance of 0.2209, the correlation coefficient between the two stocks is -0.17, and Stock A makes up 24% of the portfolio?

  What are the projects NPV and IRR respectively

A company is considering entering into a joint venture that will require an investment of $10 million. The project is expected to generate cash flows of $4 million, $3 million, and $4 million in each of the next three years, respectively. Assuming a ..

  How might an arbitrageur capitalize on the opportunity

Suppose that an investor has agreed to pay $94,339.62 for a one-year discount bond in one year.- How might an arbitrageur capitalize on this opportunity?

  About the before-tax analysis

Fairmont Industries primarily relies on 100% equity financing to fund projects. A good opportunity is available that will require $250,000 in capital. The Fairmont owner can supply the money from personal investments that currently earn an average of..

  Calculating costs and break-even

Night Shades, Inc. ( NSI), manufactures biotech sunglasses. The variable materials cost is $ 10.48 per unit, and the variable labor cost is $ 6.89 per unit. What is the variable cost per unit? Suppose NSI incurs fixed costs of $ 870,000 during a year..

  Ratio analysis is a common technique in financial analysis

As your text describes, ratio analysis is a common technique in financial analysis. One of your colleagues states that a thorough ratio analysis is all that is needed in considering the financial health of a company. Although you agree that ratio ana..

  Equally invested in a risk-free asset and two stocks

You own a portfolio equally invested in a risk-free asset and two stocks. One of the stocks has a beta of 1.28 and the total portfolio is equally as risky as the market. Required: What must the beta be for the other stock in your portfolio?

Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd