What is the annual rate earned on the investments portfolio

Assignment Help Financial Management
Reference no: EM131340049

1. A company invests $500,000 at the beginning of the year. It withdraws $45,000 at the beginning of the second quarter, and $55,000 at the beginning of the third quarter. The company invested an additional $100,000 at the beginning of the fourth quarter. The company earned $20,000 of interest during the first quarter, $15,000 in the second quarter, $10,000 in the third quarter, and $22,000 in the fourth quarter. What is the annual rate earned on the investments portfolio?

a. 13.73%

b. 15.25%

c. 16.94%

d. 14.18%

2. A firm utilizes a strategy of capital rationing, which is currently $375,000 and is considering the following two projects: Project A has a cost of $335,000 and the following cash flows: year 1 $140,000; year 2 $150,000; and year 3 $100,000. Project B has a cost of $365,000 and the following cash flows: year 1 $220,000; year 2 $110,000; and year 3 $150,000. Using a 6% cost of capital, what is the internal rate of return of project B?

a. Higher than 6%

b. Lower than 6%

c. Exactly 6%

d. Can not be determined from the given information

Reference no: EM131340049

Questions Cloud

What is its bearing from port : A ship leaves port on a bearing of 31.0° north of east and travels 13.3 mi. The ship then turns due east and travels 4.2 mi. How far is the ship from port, and what is its bearing from port?
Description of how you will measure the topic of study : In developmental psychology, the focus of research is often to examine change over time. Developmental psychologists have some special research designs that allow them to accomplish this. Two such research designs are the cross-sectional design an..
Calculate the time taken after disconnection from supply : The dielectric of a 20 μF capacitor has a resistance of 65 M Ω . This capacitor is fully charged from a 120 V d.c. supply. Calculate the time taken, after disconnection from the supply, for the capacitor to become fully discharged.
Issues in accepting audit engagements : The object of this assignment is to assist students to develop critical analysis skills in relation to auditor independence and issues in accepting audit engagements
What is the annual rate earned on the investments portfolio : A company invests $500,000 at the beginning of the year. It withdraws $45,000 at the beginning of the second quarter, and $55,000 at the beginning of the third quarter. The company earned $20,000 of interest during the first quarter, $15,000 in the s..
Pounds and the other pulls with a force : At a county fair truck pull, two pickup trucks are attached to the back end of a monster truck. One of the pickups pulls with a force of 2000 pounds and the other pulls with a force of 3000 pounds with an angle of 60° between them.
Find the magnitude of the resultant force : The angle between two forces of 37 N (Newtons) and 55 N is 36°. Find the magnitude of the resultant force. Do not round until the final answer. Then round to the nearest integer as needed.)
Airplane shadow moving along the runway : With the sun directly overhead, an airplane takes off at a speed S of 226 mph at an angle θ of 16° above the horizontal. How fast is the airplane's shadow moving along the runway?
What does the term gender mean to you : What does the term gender mean to you? How does it differ from sex?How has gender played a part in the understanding of your role and responsibilities at home and at work?How was gender conceived of when you were a teenager and what differences do yo..

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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