User Account

All Pages

What would the irr of the branch in that new location

Assignment Help Finance Basics
Reference no: EM132616813

A bank is planning to set up a new branch in a new location. If the initial invest is $28500, cost of capital is 14%, net cash inflow is $10,000 per year and expected lifetime is 4 years, what would the IRR of the branch in that new location? Should the bank set up the branch in that location?

Reference no: EM132616813

Questions Cloud

Describe the four types of attachment identified by bowlby : Research has shown that early attachment experiences can have far reaching effects on development. The work of Bowlby and Ainsworth have illustrated.
Make a statement of stockholders equity for the year : How do Make a statement of stockholders' equity for the year ended December 31, 20Y5.Accounts payable $108,000. Miscellaneous expense$19,500
Identify the principal business uses of life insurance : Identify the principal business uses of life insurance. Explain the principal business uses of life insurance.
Explain why an investor would be prepared to require return : Explain why an investor would be prepared to require a return lower than the risk-free rate for a share with a negative ß.
What would the irr of the branch in that new location : What would the IRR of the branch in that new location? Should the bank set up the branch in that location?
How you develop your knowledge of language acquisition : Many resources are available to help us continue to develop our knowledge of language acquisition. As professionals, you will need to identify and evaluate.
Preference behavior and proper agency relationship : Ratio is always a better indicator than an absolute value as far as bank's performance is concerned. Is it? And Expense preference behavior and proper agency re
Which one of the statements is not a purpose for journal : Which one of the statements is not a purpose for the journal? To show a complete transaction in one place./ To show increases and decreases in accounts
Major financial change between post-world war ii : What was the major financial change between post-World War II borrowers and borrowers after 1970?

Reviews

Write a Review

Finance Basics Questions & Answers

  Why are activity rates important to management in your

1. what are some differences between activity-based costing and the traditional costing systems?2. what are some of the

  How would you explain to a casual observer

why high-yield bond returns are more correlated to common stock returns than to investment-grade bond returns?

  Did the euro appreciate or depreciate against the dollar

In what year did the euro reach its highest value?- During the financial crisis of 2007-2009, did the euro appreciate or depreciate against the dollar?

  You have hedged the option exposure by buying 18000 shares

you are the risk manager of your bank responsible for the derivatives desk. a trader has sold 300 call option contracts

  How much must you donate today to fund this award

How much must you donate today to fund this award? Round your answer to the nearest dollar.

  Elements of the interpersonal communication model

Explain which elements of the interpersonal communication model you believe are the most important in a customer service environment

  Meaning for taxes lower income wage

Most other taxes are flat (sales tax, excise tax, property tax, etc) meaning for these taxes lower income wage earners the total dollars paid

  Net cash flow of the swap to the financial institution

A financial institution has entered into an interest rate swap in which it receives 10% per year with semiannual compounding and pays 6-month LIBOR.

  Plant for the divestiture to be profitable

Goodyear has an equity cost of capital of 8.7%, a debt cost of capital of 7.1%, a marginal corporate tax rate of 36%, and a debt-equity ratio of 2.6. If the plant has average risk and Goodyear plans to maintain a constant debt-equity ratio, what a..

  Find which statement is correct

Stock X has the following information. Suppose the stock market is efficient and the stock is in equilibrium, expected dividend, D1 = $3.00, current price, P0 = $50,

  What is the current value of ebeling the stock

If Ebeling has a required rate of return of 0.16, what is the current value of Ebeling's the stock?

  What is general motors expected return

Your estimate of the market risk premium is 7%. The risk-free rate of return is 3.0% and General Motors has a beta of 1.3. According to the Capital Asset Pricing Model (CAPM), what is General Motor's expected return?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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