Which job pays the higher salary

Assignment Help Finance Basics
Reference no: EM13276109

1. An investment is expected to generate $2,000,000 each year for five years. If the firm's cost of funds is 5%, what is the maximum amount the firm should pay for the investments? 2. You put $200,000 in the bank today; if the annual interest rate paid by the bank is 20.5%, and you do not make any withdrawals for 20 years, what will be your balance at that time? 3. You are offered two jobs. One initially pays $100,000 annually and your salary will grow annually at 11.5%. The other pays $97,000 annually, but your salary will grow at 12%. After 10 years, which job pays the higher salary? 4. A firm has 40,000,000 in revenues, 12,500,000 in fixed costs, 10,250,000 in variable costs, and interest of 2,000,000. Compute the DOL, DFL, and DCL. Please show all work.

Reference no: EM13276109

Questions Cloud

Estimate the failure rate of the values of the system : Consider a pressure relief system. If consists of two values in parallel and achieves an availability of 0.95 when the valves are tested on a staggered basis, each valve being tested every 4 months. Estimate the failure rate of the values.
Explain what is the half-life of the reaction in yr : A first order decomposition reaction has a rate constant of 0.0418yr-1. What is the half-life of the reaction in yr
What is reliability of redundant system with high-level : A system consists of three components in series, each with a reliability of 0.935. A second set of three components is purchased and a redundant system is built.
Explain what statement best describes the graph representing : what statement best describes the graph representing the integrated 1st order rate law
Which job pays the higher salary : which job pays the higher salary? 4. A firm has 40,000,000 in revenues, 12,500,000 in fixed costs, 10,250,000 in variable costs, and interest of 2,000,000. Compute the DOL, DFL, and DCL. Please show all work.
Explain the importance of situating a societys cultural : Explain how key social, cultural, and artistic contributions contribute to historical changes and explain the importance of situating a society's cultural and artistic expressions within a historical context.
Compute the worst case duty cycle that can be allowed : Assume for now that all components are powered up simultaneously and that event detection is instantaneous. This means that one does not need to consider sampling or processing time. Also, all three sensors are required for unambiguous event detec..
Explain what is the theoretical economy of heating : What is the theoretical economy of heating A mixture of sodium carbonate and sodium bicarbonate ? sodium carbonate is the desired product and water and carbon dioxide are the undesirable wastes.
What relationship between value of annuity and interest rate : What happens to the value of your investment if the interest rates suddenly drop to 5%? - What if the interest rates suddenly rise to 15%.

Reviews

Write a Review

Finance Basics Questions & Answers

  Bonds nominal yield to maturity

What is the current yield on these bonds and  What is the bond's nominal yield to maturity.

  What is the future value of these investment cash flows

If the appropriate interest rate is 6.75 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal places, e.g. 15.25.)

  Determine operating cash flow

A project has a contribution margin of $5, projected fixed costs of $13,000, projected variable cost per unit of $12, Determine operating cash flow for the project.

  Find the selling price

The Clearwater Aquarium Corporation will produce 66,000 ten gallon aquariums next year. Variable costs are 40% of sales while fixed costs total $133,200.

  Discuss the objectives of corporate governance

Discuss the objectives of corporate governance and why this has led to increased costs for publicly traded companies.

  The article "mutual fund fees around the world" by ajay khor

Write a review of the article "Mutual Fund Fees Around the World" by Ajay Khorana, Henri Servaes and Peter Tufano. Review of Financial Studies, 22(3), 1279-1310.

  Iron company sells its irons

Suppose that discount rate is 10% each year, there is no possibility of repeat order, also Q will pay either in full or not at all.

  What is the value of brushy mountains stock

As a result, the company's earnings and dividends are declining at the constant rate of 5% per year. If D0 = $6 and rs = 18%, what is the value of Brushy Mountain's stock? Round your answer to the nearest cent.

  Prepare a 20x8 consolidated income statement

Assume that Go-med is a joint venture owned by Insure and four other venturers, that the acquisition differentials are valid, and that it has not yet adopted IFRS 11: Joint Arrangements.  Prepare a 20X8 consolidated income statement for Insure using ..

  What are the bond-equivalent and discount yields

However, the treasurer wants to know the money market yield on this instrument to make it comparable to the T-Bills and CDs she has already bought. If the term of the instrument is 90 days, what are the bond-equivalent and discount yields on this ..

  Hadlock industries cash flow

Determine Hadlock Industries' Cash Flow from Financing for the year ending 6/30/2011

  What would your required rate of return be on common stocks

What would your required rate of return be on common stocks if you wanted a 5 percent risk premium to own common stocks given what you know from problem 2? If common stock investors became more risk averse, what would happen to the required rate of r..

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