What is the profit on new sales

Assignment Help Financial Management
Reference no: EM131884079

1. Mike Carlson will receive $12,000 a year from the end of the third year to the end of the 12th year (10 payments). The discount rate is 10%. The present value today of this deferred annuity is ____. (Please Explain Work Done To Get Answer)

A. $61,450

B. $42,185

C. $60,909

D. $55,379

2. To save for her newborn son's college education, Lea Wilson will invest $1,000 at the end of each year for the next 20 years. The interest rate if 10%. What is the future value? (Please Explain Work Done To Get Answer)

A. $8,514

B. $2,980

C. $63,440

D. $57,275

3. Price Corp. is considering selling to a group of new customers and creating new annual sales of $90,000. Five percent will be uncollectible. The collection cost on all accounts is 3% of new sales, the cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. What is the profit on new sales? (Please Explain Work To Get Answer)

A. $7,560

B. $9,660

C. $7,245

D. $10,710

Reference no: EM131884079

Questions Cloud

Why is substance misuse among nurses a serious concern : Why is substance misuse among nurses a serious concern? What action is suggested when you are faced with an angry or hostile coworker?
What is your estimate of the stock current price : The company's stock has a beta of 1, the risk-free rate is 7%, and the market risk premium is 3%. What is your estimate of the stock's current price?
How technology can aid in repurposing everyday items : As a team leader in the Creative Department, you run bi-monthly strategy and brainstorming sessions with all agency employees.
Explain the role that motivation plays in individual : Discuss Maslow's hierarchy of needs and explain the role that motivation plays in individual and team performance. Analyze how different people are motivated.
What is the profit on new sales : The cost of producing and selling is 80% of sales, and the firm is in the 30% tax bracket. What is the profit on new sales?
Is pepsi the right brand for a cause marketing program : Is Pepsi the right brand for a cause marketing program like the Pepsi Refresh Project? Why or why not?
How do you evaluate five forces in that industry : How do you evaluate five forces in that industry? What internal resources and assets did FreshDirect have that gave it a competitive advantage?
Disucss the katz index of activities of daily living : Disucss the Katz Index of Activities of Daily Living and Tinetti Balance and Gait Evaluation. Make sure the older adult is clearly identified on the tools.
What is your holding period return : Two Years Later, the YTM has decreased to 8.3%. You just received a coupon payment and have decided to sell the bond. What's your holding period return?

Reviews

Write a Review

Financial Management Questions & Answers

  Reimbursement rate per mile so that you can break even

what should he your reimbursement rate per mile so that you can break even?

  What is the value of the company equity

Icarus Airlines is proposing to go public, and you have been given the task of estimating the value of its equity. Management plans to maintain debt at 25% of the company’s present value, and you believe that at this capital structure the company’s d..

  Build balanced scorecard for the unit of the organization

Build a Balanced Scorecard for the unit of the organization for which you work, or have worked. Unless you are in senior management, focus on the unit with which you are most familiar rather than the organization as a whole. Identify the strategic ob..

  Calculate the yield using a geometric average

One-year Treasury securities yield 5%. The market anticipates that 1 year from now, 1 year Treasury securities will yield 6%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities? Calculate the yield usin..

  What is the equivalent annual annuity if the discount rate

Machinery costs $1 million today and $100,000 per year to operate. It lasts for 8 years. What is the equivalent annual annuity if the discount rate is 5%? Enter your answer in dollars and round to the cent.

  What is the best estimate of current stock price

The XYZ Company paid $1.85 dividend yesterday. Its dividend growth rate is expected to be constant at 22.30% for 2 years, after which dividends are expected to grow at a rate of 5.80% forever. Its required return (rs) is 13.05%. What is the best esti..

  What is the simple npv of each project

What is the simple NPV of each project? - What is the NPV(N, co) of each project? - What is the annual equivalent value of each project?

  What rate is the dividend projected to be growing

Shares of SoHot Donuts common stock are currently selling for $15. Next year’s dividend is expected to be $1.50 per share and the market rate of return is 13%. At what rate is the dividend projected to be growing?

  Preparation of budgets and working capital management

Evaluate the CVP technique and explain the limitations of its use in the context of both the different interpretations of the CVP technique offered by the economist's model of CVP and other limitations.

  Indifferent between accepting the project and rejecting

A project that provides annual cash flows of $2,700 for nine years costs $8,800 today. At a required return of 28 percent, what is the NPV of the project? At what discount rate would you be indifferent between accepting the project and rejecting it?

  The capital-gains yield on the stock

An investor earns dividends of $450 during the course of the year. At the end of the year, the stock is worth $10,700. The capital-gains yield on the stock was 8 percent. At the beginning of the year, the stock was worth?

  What is her portfolios beta

An individual has $30,000 invested in a stock with a beta of 0.7 and another $50,000 invested in a stock with a beta of 1.1. If these are the only two investments in her portfolio, what is her portfolio's beta? Round your answer to two decimal places..

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