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Answer - Present worth of the contract is $ 214887
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1(b) A software company is offering to a smart phone app developer the following ontract. At...
1(b) A software company is offering to a smart phone app developer the following contract. At...
1(b) A software company is offering to a smart phone app developer the following contract. At 8% interest, what is the present worth of this contract? S30,000/year for the next 5 years S35,000/year for another 5 years (i.e. 5 years following the initial 5 years).
Exercise 1 Income from the sale of application software (apps) is usually constant for several years...
Exercise 1 Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $125,000 in years 1 through 4 and then decreased by 20% per year through year 10. Determine the equivalent uniform annual income in years 1 through 10, using an interest rate of 14% per year.
Question 2: Xueba Inc. is a new startup company offering an interactive learning app to help...
Question 2: Xueba Inc. is a new startup company offering an interactive learning app to help students in high school with their studies. Ever since Xueba founded a few years ago, it has been experiencing rapid growth. Xueba just paid a dividend of $2.95 per share. You expect that annual dividends will grow by 25% each year for the next four years, by 15% for the following two years, and then fall to a sustainable growth rate of 4% forever....
4(a) For the use of space, a warehouse owner has been offered the following contract: Year...
4(a) For the use of space, a warehouse owner has been offered the following contract: Year 1: $2,000 at the beginning of year 1 plus $2,000 at the end of year 1 Years 2 to 6: $2,000 per year (end-of-year payments) for years 2 to 6. Years 7 to 15: $3,000 for year 7 and for the following years, an increase of $1000/year (end of year payments) (i.e. year 7 payment will be $3,000, for year 8 the payment will...
Smart Company issued $120,000 of 10 percent bonds on January 1, 20X1, at 120. The bonds...
Smart Company issued $120,000 of 10 percent bonds on January 1, 20X1, at 120. The bonds mature in 10 years and pay 10 percent interest annually on December 31. Phone Corporation holds 80 percent of Smart’s voting shares, acquired on January 1, 20X1, at underlying book value. On January 1, 20X4, Phone purchased Smart bonds with a par value of $49,500 from the original purchaser for $54,450. Phone uses the modified equity method in accounting for its ownership in Smart....
slove it in excel , show formula The GEM Company just purchased upgraded CAD software for...
slove it in excel , show formula
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600...
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in Excel, shoe formula
b. AP, a national apparel retailer, Plans to work with a third-party developer to launch their...
b. AP, a national apparel retailer, Plans to work with a third-party developer to launch their mobile ers check their wish list and previous purchases on their phone tore. It also sends targeted promotion notifications to customers. development fee and $20 million marketing costs. However, AP beie effort will lower the customer churn rate from 20% t (1) Fill in the CLV table below. (5 points) (2) Calculate the ROl of the App. (2 points) o 16% Without the App...
66. An insurance company is offering the following annuity4 product. Cost today to the retiree, $100,000....
66. An insurance company is offering the following annuity4 product. Cost today to the retiree, $100,000. The annuity will pay $12,000 at the end of the next ten years to the retiree. What rate of return is implied in this financial contract?
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. When it was founded over 70 years ago,...
Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company's finance department. One of the major revenue-producing items manufactured by...
1(b) A software company is offering to a smart phone app developer the following contract. At 8% interest, what is the present worth of this contract? S30,000/year for the next 5 years S35,000/year for another 5 years (i.e. 5 years following the initial 5 years).
Exercise 1 Income from the sale of application software (apps) is usually constant for several years and then decreases quite rapidly as the market gets close to saturation. Income from one smart phone app was $125,000 in years 1 through 4 and then decreased by 20% per year through year 10. Determine the equivalent uniform annual income in years 1 through 10, using an interest rate of 14% per year.
Question 2: Xueba Inc. is a new startup company offering an interactive learning app to help students in high school with their studies. Ever since Xueba founded a few years ago, it has been experiencing rapid growth. Xueba just paid a dividend of $2.95 per share. You expect that annual dividends will grow by 25% each year for the next four years, by 15% for the following two years, and then fall to a sustainable growth rate of 4% forever....
4(a) For the use of space, a warehouse owner has been offered the following contract: Year 1: $2,000 at the beginning of year 1 plus $2,000 at the end of year 1 Years 2 to 6: $2,000 per year (end-of-year payments) for years 2 to 6. Years 7 to 15: $3,000 for year 7 and for the following years, an increase of $1000/year (end of year payments) (i.e. year 7 payment will be $3,000, for year 8 the payment will...
slove it in excel , show formula
The GEM Company just purchased upgraded CAD software for $20,000 now and annual payments of $600 per year for 10 years starting 3 years from now for annual upgrades. What is the present worth in year 0 of the payments if the interest rate is 6% per year? solve it in
b. AP, a national apparel retailer, Plans to work with a third-party developer to launch their mobile ers check their wish list and previous purchases on their phone tore. It also sends targeted promotion notifications to customers. development fee and $20 million marketing costs. However, AP beie effort will lower the customer churn rate from 20% t (1) Fill in the CLV table below. (5 points) (2) Calculate the ROl of the App. (2 points) o 16% Without the App...
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