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2) You will be investing $30,000 of your capital in a bank with a guaranteed interest...
Please show work! 2. You are considering investing in a real estate project. Your one ownership...
Please show work!
2. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flows for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 8.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net...
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $30,000 $80,000 o oo $10,000 $210,000...
To purchase a new truck, you borrow $30,000. The bank offers a 6-year loan at an...
To purchase a new truck, you borrow $30,000. The bank offers a 6-year loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest: a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i), per period of time, should be used in solving this problem? c. Is the present single amount of...
Question 2 25 points You have these financial data: Cash Current Assets 201918) 30,000 126,000 2020...
Question 2 25 points You have these financial data: Cash Current Assets 201918) 30,000 126,000 2020 (p) 25,264 156,000 Sales Costs Other expenses Depreciation expense Interest expense Tax Rate 2020 (p) 335.000 240.000 10.800 19.600 13,000 21% Property Plant and Equipment (net) 261,000 417,000 268,000 449,264 Total Assets Memo: Dividends 12,500 Current Liabilities Debt 39,000 321.000 47,000 314,000 Paid-h Capital Retained Earnings Total Equity 11,000 46.000 57.000 14,000 74,264 88,264 Total Liab. & Equity 417,000 449,264| Please determine a) Cash...
help!!! Your bank will pay you an interest rate of .097 percent per week. You want...
help!!!
Your bank will pay you an interest rate of .097 percent per week. You want to have $22,000 in 10 years. How much will you have to deposit today? Assume 52 weeks per year Multiple Choice $13,465.52 $13,583.64 $13,449.62 $13.288.34 $20.918.35 A project will generate annual cash flows of $237,600 for each of the next three years, and a cash flow of $274,800 during the fourth yoar. The initial cost of the project is $763,600. What is the internal...
A bank offers a nominal annual interest rate of 8% for a new savings account. (i)...
A bank offers a nominal annual interest rate of 8% for a new savings account. (i) What is the effective rate when compounded quarterly? Draw the cash flow diagram. (ii) If you want to build $500,000 in savings in 2 years, what quarterly annuity must be made? Draw the cash flow diagram.
Problem 2-13 Present values Lofting Snodbury is considering investing in a new boring machine. It costs...
Problem 2-13 Present values Lofting Snodbury is considering investing in a new boring machine. It costs $414,000 and is expected to produce the following cash flows: Year Cash flow (5000) 1 69 2 76 3 4 113 118 5 6 7 104 111 111 8 118 9 87 10 69 If the cost of capital is 13%, what is the machine's NPV? (Do not round Intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.) Net present...
Farmers Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with...
Farmers Bank offers to lend you $30,000 at a nominal rate of 6.0%, simple interest, with interest paid quarterly. Gold Coast offers to lend you the $30,000, but it will charge 7.0%, simple interest, with interest paid semiannually. What's the difference in the effective annual rates charged by the two banks?
help Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest...
help
Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest compounded 5. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $25,000 for one year, how much would you have? 6. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? ut, pelivery The Concept of Equivalence 7. Suppose that, to purchase a car, you are obtaining a...
(1). 2.3 To purchase a new truck it is necessary to borrow $30,000. The bank car...
(1). 2.3 To purchase a new truck it is necessary to borrow $30,000. The bank car dealer offers a 6-yr loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest, what is the total amount that must be paid back? a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i), per...
Please show work!
2. You are considering investing in a real estate project. Your one ownership unit would cost $30,000. The project is expected to generate annual cash flows for you of: $4,500 in year 1, $5,000 in years 2-5, $8,000 in year 6 and $19,000 in year 7. With a discount rate of 8.0%, what is the net present value (NPV) of this investment? Should you invest in this deal? Why or why not?
Johnson Manufacturing is considering investing $80,000 in a new piece of machinery that will generate net annual cash flows of $30,000 each year for the next 7 years. The machine has a salvage value of $10,000 at the end of its 7 year useful life. Johnson's cost of capital and discount rate is 8%. What is the dollar amount that we would multiply the factor by when using the PV of an Annuity table? $30,000 $80,000 o oo $10,000 $210,000...
Question 2 25 points You have these financial data: Cash Current Assets 201918) 30,000 126,000 2020 (p) 25,264 156,000 Sales Costs Other expenses Depreciation expense Interest expense Tax Rate 2020 (p) 335.000 240.000 10.800 19.600 13,000 21% Property Plant and Equipment (net) 261,000 417,000 268,000 449,264 Total Assets Memo: Dividends 12,500 Current Liabilities Debt 39,000 321.000 47,000 314,000 Paid-h Capital Retained Earnings Total Equity 11,000 46.000 57.000 14,000 74,264 88,264 Total Liab. & Equity 417,000 449,264| Please determine a) Cash...
help!!!
Your bank will pay you an interest rate of .097 percent per week. You want to have $22,000 in 10 years. How much will you have to deposit today? Assume 52 weeks per year Multiple Choice $13,465.52 $13,583.64 $13,449.62 $13.288.34 $20.918.35 A project will generate annual cash flows of $237,600 for each of the next three years, and a cash flow of $274,800 during the fourth yoar. The initial cost of the project is $763,600. What is the internal...
Problem 2-13 Present values Lofting Snodbury is considering investing in a new boring machine. It costs $414,000 and is expected to produce the following cash flows: Year Cash flow (5000) 1 69 2 76 3 4 113 118 5 6 7 104 111 111 8 118 9 87 10 69 If the cost of capital is 13%, what is the machine's NPV? (Do not round Intermediate calculations. Enter your answer in whole dollars rounded to 2 decimal places.) Net present...
help
Por Jou pie M ICELIUI SCVCIl years. Which option is better? Interest effective and Interest compounded 5. Suppose your savings account pays 9% interest compounded quarterly. If you deposit $25,000 for one year, how much would you have? 6. If your credit card calculates the interest based on 12.5% APR, what is your monthly interest rate and annual effective interest rate, respectively? ut, pelivery The Concept of Equivalence 7. Suppose that, to purchase a car, you are obtaining a...
(1). 2.3 To purchase a new truck it is necessary to borrow $30,000. The bank car dealer offers a 6-yr loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest, what is the total amount that must be paid back? a. What is the number of time periods (n) you should use in solving this problem? b. What rate of interest (i), per...
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