Roxanne invested $490,000 in a new business 10 years ago. The business was expected to bring...
Roxanne invested $490,000 in a new business 10 years ago. The business was expected to bring in $5,000 each month for the next 19 years (in excess of all costs). The annual cost of capital (or interest rate) for this type of business was 10% with monthly compounding. What is the value of the business today?
Homework Answers
Request Answer!
We need at least 10 more requests to produce the answer.
0 / 10 have requested this problem solution
The more requests, the faster the answer.
Add Answer to:
Roxanne invested $490,000 in a new business 10 years ago. The
business was expected to bring...
6. What will $150,000 grow to be in 15 years if it is invested in an account...
6. What will $150,000 grow to be in 15 years if it is invested in an account with a quoted annual interest rate of 10% with monthly compounding of interest? 7. How many years will it take for $200,000 to grow to be $600,000 if it is invested in an account with a quoted annual interest rate of 8% with monthly compounding of interest? 8. At what quoted annual interest rate must $135,000 be invested so that it will grow to be $460,000...
Elham has borrowed some money 10 years ago. She started repaying it from today with monthly...
Elham has borrowed some money 10 years ago. She started repaying it from today with monthly payments of $100 at the beginning of every month for 40 months. How much has she borrowed 10 years ago if interest rate is 2.4% p.a. compounding quarterly?
Fifteen years ago, Hailey invested $5,000 and locked in an annual interest rate of 6 percent...
Fifteen years ago, Hailey invested $5,000 and locked in an annual interest rate of 6 percent for 30 years (ending 15 years from now). Aidan can make a 15-year investment today and lock in an interest rate of 8 percent. How much money should he invest now in order to have the same amount of money in 15 years as Hailey?
How much will $20,000 invested today at 3 percent interest be worth in 5 years if...
How much will $20,000 invested today at 3 percent interest be worth in 5 years if it is compounded annually? How much will it be worth in 5 years if compounded monthly? Value Today- Rate- Number of years- Months per year- Compounding periods- Rate per quarter- Annual FV- Monthly FV-
A $26,000 loan borrowed 5 years ago, has been scheduled for re-pay starting today. The payment...
A $26,000 loan borrowed 5 years ago, has been scheduled for re-pay starting today. The payment schedule is equal monthly payments made at the end of every month for the next 10 years. Find the size of the payments if interest is 3.6% p.a. compounding monthly
(b) The founder of Firm A started the firm-five years ago. The business has been profitable. Toda...
(b) The founder of Firm A started the firm-five years ago. The business has been profitable. Today she is looking to sell additional shares in the firm in order to expand the business and take advantage of new investment opportunities. Is it possible for new stockholders investing in this growth firm to arn a return in excess of capital market rate of return? Explain why
(b) The founder of Firm A started the firm-five years ago. The business has been...
Suppose that you invested $100,000 in a business venture a number of years ago, your annual...
Suppose that you invested $100,000 in a business venture a number of years ago, your annual rate of return has been 11% and you have been given an offer of $283,942.00 to purchase your share of the business. How many years (round to the nearest whole year) have you been invested in the business (i.e. assume you invested on January 1, 200X and it is now December 31, 20XX)? Group of answer choices A. 8 years D. 10 years B. 11...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000 for the installation. The machine was to be linearly depreciated to zero over 15 years. The company has just sold the machine for $4.8 million, and its marginal tax rate is 25%. Part 1 Attempt 1/5 for 10 pts. What is the annual depreciation? No decimals Submit IB Attempt 1/5 for 10 pts. Part 2 What is the current book value? No decimals Submit...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000 for the installation. The machine was to be linearly depreciated to zero over 15 years. The company has just sold the machine for $4.8 million, and its marginal tax rate is 25% Attempt 1/5 for 10 pts. Part 1 What is the annual depreciation? No decimals Submit IB Attempt 1/5 for 10 pts. Part 2 What is the current book value? No decimals Submit...
Question 2 1 pts You invested $11,000, 11 years ago, and today the investment is worth...
Question 2 1 pts You invested $11,000, 11 years ago, and today the investment is worth $26,000. At what annual interest rate was the money invested, assuming the interest was compounded annually? Express your answer in % to the nearest 1/10%.
(b) The founder of Firm A started the firm-five years ago. The business has been profitable. Today she is looking to sell additional shares in the firm in order to expand the business and take advantage of new investment opportunities. Is it possible for new stockholders investing in this growth firm to arn a return in excess of capital market rate of return? Explain why
(b) The founder of Firm A started the firm-five years ago. The business has been...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000 for the installation. The machine was to be linearly depreciated to zero over 15 years. The company has just sold the machine for $4.8 million, and its marginal tax rate is 25%. Part 1 Attempt 1/5 for 10 pts. What is the annual depreciation? No decimals Submit IB Attempt 1/5 for 10 pts. Part 2 What is the current book value? No decimals Submit...
Intro 8 years ago, a new machine cost $8 million to purchase and an additional $490,000 for the installation. The machine was to be linearly depreciated to zero over 15 years. The company has just sold the machine for $4.8 million, and its marginal tax rate is 25% Attempt 1/5 for 10 pts. Part 1 What is the annual depreciation? No decimals Submit IB Attempt 1/5 for 10 pts. Part 2 What is the current book value? No decimals Submit...
Question 2 1 pts You invested $11,000, 11 years ago, and today the investment is worth $26,000. At what annual interest rate was the money invested, assuming the interest was compounded annually? Express your answer in % to the nearest 1/10%.
Most questions answered within 3 hours.
-
Which of the following statements is true regarding the nature
of culture?
A.We are born with...
asked 6 minutes ago -
(a) 2
NO2(g) à 2
NO(g) +
O2(g)
The rate law for this reaction
is 2nd...
asked 10 minutes ago -
Write the overall reaction for the RedOx
reaction (below) when it occurs in an acidic environment....
asked 16 minutes ago -
Two forces are acting on an object. Force 1 on the object is 6.0
N and...
asked 17 minutes ago -
You are planning for retirement. You plan to work for 20 years.
Starting a year from...
asked 30 minutes ago -
The African Adventures exhibit water system holds approximately
850,000 gallons (3.2x109 g) of water. The temperature...
asked 22 minutes ago -
which of the following is capital?
the barn a farmer uses to hold the chickens he...
asked 32 minutes ago -
Attribute
Sample Value
Sample Value
Sample Value
Sample Value
pirate_num
11
22
43
54
pirate_lname
James...
asked 25 minutes ago -
10. Two forces act on a 3 kg object, the gravitational force and
a second, constant...
asked 42 minutes ago -
Dividing Partnership Net Loss
Leigh Meadows and Byron Leef formed a partnership in which the
partnership...
asked 39 minutes ago -
Discuss how Entrepreneurial leadership style differs
from traditional leadership?
asked 1 hour ago -
A futuristic design for a car is to have a large solid
disk-shaped flywheel within the...
asked 1 hour ago