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financial management <<<<<<<<<PLEASE HELP ME>>>>>>>>>>

1. A 5-year annuity of ten $3,000 semiannual payments will begin 8 years from now, with the first payment coming 8.5 years from now. Suppose that the discount rate is 12 percent compounded monthly. 

a. What is the value of this annuity five years from now? 

b. What is the value three years from now? 

c. What is the current value of the annuity?


2. You have just purchased a new warehouse. To finance the purchase, you’ve arranged for a 30-year mortgage loan for 80 percent of the $2,500,000 purchase price. The monthly payment on this loan will be $21,000. 

 a. What is the APR on this loan? 

 b. What is the EAR on this loan?


3. During 2020, Corp had sales of $680,000. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $580,000, $85,000, and $135,000, respectively. In addition, the company had an interest expense of $75,000 and a tax rate of 35 percent. (Ignore any tax loss carryback of carry forward provisions.) 

a. What is Corp’s net income for 2020? 

b. What is its operating cash flow?

c. Suppose Corp paid out $28,000 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the increased amount in the firm’s long-term debt account?

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