Reference no: EM13487752
1.Marian Plunket owns her own business and is considering an investment. If she undertakes the investment, it will pay $4000 at the end of each of the next three years. The opportunity requires an initial investment of $1000 plus an additional investment at the end of the second year of $5000. What is the NPV of this opportunity if the interest rate is 2% per year? Should Marian take it?
2.Your buddy in mechanical engineering has invented a money machine. The main drawback of the machine is that it is slow. It takes one year to manufacture $100. However, once built, the machine will last forever and will require no maintenance. The machine can be built immediately, but it will cost $1000 to build. Your buddy wants to know if he should invest the money to construct it. If the interest rate is 9.5% per year, what should your buddy do?
3.How would your answer to Problem 16 change if the machine takes one year to build?
4.The British government has a consol bond outstanding paying £100 per year forever. Assume the current interest rate is 4% per year.
a. What is the value of the bond immediately after a payment is made?
b. What is the value of the bond immediately before a payment is made?4.What is the present value of $1000 paid at the end of each of the next 100 years if the interest rate is 7% per year?
5.What is the present value of $1000 paid at the end of each of the next 100 years if the interest rate is 7% per year?
|
General ability to adapt to an environment
: _______________ often refers to specific abilities such as memory and reasoning, whereas _______________refers to a more general ability to adapt to an environment.
|
|
Influence of worker satisfaction on productivity
: Sarah is attempting to draw a general conclusion about the influence of worker satisfaction on productivity by quantitatively combining the results from a number of studies. What statistical method would she use?
|
|
Relevant in your personal or professional life
: Share two examples to show how knowledge of psychology can be relevant in your personal or professional life.
|
|
You have lived in the house for 20 years
: You have lived in the house for 12 years (so there are 18 years left on the mortgage) and you decide to pay off the mortgage immediately before the twelfth payment is due?
|
|
What is the value of the bond immediately before a payment
: What is the value of the bond immediately before a payment is made?4.What is the present value of $1000 paid at the end of each of the next 100 years if the interest rate is 7% per year?
|
|
Preparing adjustments on march 31
: Additional facts are available for preparing adjustments on March 31 prior to financial statement preparation - the March 31 amount of computer supplies still available totals $2,015 and three more months have expired since the company purchased its..
|
|
Compute the companys depreciation expense
: Compute depreciation for 20X3 - 20X7 by using the following methods: straight line, units of output, and double-declining-balance and management shortened the remaining service life of the machine to 20 months. Assuming use of the straight-line met..
|
|
Explain a radiation source has an intensity of 650 rem
: A radiation source has an intensity of 650 rem at 1.0 m, what distance is needed to decrease the intensity of expo- sure to below 25 rem, the level at which no effects are detectable
|
|
The position of equilibrium favors the formation of reactant
: If an equilibrium constant is much larger than one, it means? A. The position of equilibrium favors the formation products B. The position of equilibrium favors the formation of reactants C
|