Signed contract with supplier to purchase goods

Assignment Help Financial Management
Reference no: EM131048567

A wholesale company has signed a contract with a supplier to purchase goods for $2,000,000 annually. The first purchase will be made now to be followed by 10 more. Determine the contract's present worth at a 7% interest rate.

Reference no: EM131048567

Questions Cloud

Processes to help control pollution : Julia is worried about the rising pollution levels in her city. She doesn't mind paying extra for goods and services that use sustainable processes to help control pollution. This is an example of ________ for pollution.
Cross-docking strategy : Consider a large discount store. Discuss some products and suppliers for which the discount store should use a cross-docking strategy; some products and suppliers better suited to a direct-shipment strategy;
Which of the accounting theories you have studied : Indicate which of the accounting theories you have studied this semester might help to explain your research questions, and why these accounting theories would be appropriate
European put option with a strike price : A stock price is currently $50. It is known that at the end of 6 months it will be either $45 or $55. The risk-free interest rate is 10% per annum with continuous compounding. What is the value of a 6-month European put option with a strike price of ..
Signed contract with supplier to purchase goods : A wholesale company has signed a contract with a supplier to purchase goods for $2,000,000 annually. The first purchase will be made now to be followed by 10 more. Determine the contract's present worth at a 7% interest rate.
What should be the exchange rate at the end of the year : Assume that the export price of a Toyota Corolla from Osaka, Japan is ¥2,500,000. The spot exchange rate is ¥119.50/$. The forecast rate of inflation in the United States is 1.25% per year and is 0.0% per year in Japan. What was the export price for ..
Prepare a flexible budget for increments : Lapp Manufacturing uses flexible budgets to control its selling expenses. Monthly sales are expected to be from $400,000 to $480,000. Instructions - Prepare a flexible budget for increments of $40,000 of sales within the relevant range
Non verbal listening youtube video : View the Non Verbal Listening YouTube video and respond to the following questions.  Please include complete sentences.
Context for designing high-performance work systems : Do you think the four principles of high involvement provide adequate context for designing high-performance work systems? What other concerns or guidelines for developing high-performance work systems would you suggest?

Reviews

Write a Review

Financial Management Questions & Answers

  Projections given for price-quantity-variable costs

We are evaluating a project that costs $1,638,000, has a seven-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 87,900 units per year. Suppose the projections ..

  Financial holding companies are

Financial holding companies are: Companies that hold a variety of different types of financial institutions. Are currently being regulated by the U.S. Office of the Comptroller of the Currency. Cannot hold both depository and non-depository financial..

  What does the beta of the new security have to be

You currently own a portfolio valued at $16,000 that has a beta of 1.2. You have another $8,000 to invest and would like to invest it in a manner such that the risk of your portfolio matches that of the overall market. What does the beta of the new s..

  Markets expectation of the growth rate of MBI dividends

A) Computer stocks currently provide an expected rate of return of 14%. MBI, a large computer company, will pay a year-end dividend of $1 per share. If the stock is selling at $50 per share, what must be the market's expectation of the growth rate of..

  Compute the present value of deposit

Compute the present value of a $3,700 deposit in year 3 and another $3,200 deposit at the end of year 5 if interest rates are 8 percent. (Do not round intermediate calculations and round your final answer to 2 decimal places.)

  About the default risk premium

A Treasury bond that matures in 10 years has a yield of 4.75%. A 10-year corporate bond has a yield of 10%. Assume that the liquidity premium on the corporate bond is 0.3%. What is the default risk premium on the corporate bond?

  Stock price decline after firms dividend cut announcement

Although we say that a firm's dividend policy does not matter in an ideal world without frictions (i.e. no taxes, no transaction or issuance costs), in practice, we often observe firms that announce a dividend cut experience a decline in their stock ..

  How much will each annual payment be

Big Brothers, Inc. borrows $460,368 from the bank at 6.85 percent per year, compounded annually, to purchase new machinery. This loan is to be repaid in equal annual installments at the end of each year over the next 8 years. How much will each annua..

  Create the statement of sources and uses of cash entries

Create the statement of sources and uses of cash from the following entries:

  The bid for each share should range between

Hastings Corporation is interested in acquiring Vandell Corporation. Vandell has 1 million shares outstanding and a target capital structure consisting of 30% debt. Vandell's debt interest rate is 7.6%.  Indicate the range of possible prices that Has..

  What will be the new price of the bonds

You are called in as a financial analyst to appraise the bonds of the Holtz Corporation. The $1,000 par value bonds have a quoted annual interest rate of 14 percent, which is paid semiannually. The yield to maturity on the bonds is 12 percent annual ..

  Which strategy best fits his objective

Ben owns 1,000 shares of stock that is selling for $40 per share. He wants to defer selling the stock until next January for tax reasons. He wants to find a strategy that guarantees he will have at least $40,000 in value next January. Which strategy ..

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