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in engineering economic Second question A company needs a loan of 500,000S to fund a project...
in engineering economic First question Consider a cash flow diagram in current value that includes 6...
in engineering economic
First question Consider a cash flow diagram in current value that includes 6 equal end-okycar payments. The value of each payment is X. a. Calculate X, assuming the present worth is 500S) the future worth at the end of the 6th year in current value will bei 000s, and the predictable inflation is2%peryear. b. What are the payments real values? Xr 4.22
4, Jim needs to borrow $500 for 60 days. Bank is offering to loan the money...
4, Jim needs to borrow $500 for 60 days. Bank is offering to loan the money at 9% bank discount rate. (a) What would be the maturity value on this loan? (b) What rate of simple discount would be equivalent to this loan? 5. A couple purchased a house and signed a mortgage contract for $350 000 to be paid in monthly installments over 25 year, at 3.5%. The contract stipulates that after 5 years the mortgage will be renegotiated...
You need a $10,000 car loan and are talking to two different banks. FIN 3013 Project...
You need a $10,000 car loan and are talking to two different banks. FIN 3013 Project 2. Time Value of money. Sarwar Se i. Big Bank offers you a $10,000 auto loan requiring 48 monthly payments of $275. paid at the end of each month. What is the APR of the loan? What is the effective annual rate? ii. Little Bank's loan has 4 annual year-end instalments, each equal to 12 times the Big Bank monthly loan payments, e.g. Payment...
nituen beak han hon bands VRE in an end. A company wishes to fund a new project. The total co from a bank loan, 12 m...
nituen beak han hon bands VRE in an end. A company wishes to fund a new project. The total co from a bank loan, 12 million will be funded earnings and the rest from com the rest from common stock with dividends. The bank loan will be 12% per year con yearly with quarterly payments. Dividends will dollars. The combined tax rate is 35%. What is must show your calculations in detail. ect. The total cost will be 40 million....
25 A U.S.-based company, American Construction, Inc., arranged a 2-year, $1,000,000 loan to fund a project...
25 A U.S.-based company, American Construction, Inc., arranged a 2-year, $1,000,000 loan to fund a project in Mexico. The loan is denominated in Mexican pesos, carries a 10.0% nominal rate, and requires equal semiannual payments. The exchange rate at the time of the loan was 5.75 pesos per dollar, but it dropped to 5.35 pesos per dollar before the first payment came due. The loan was not hedged in the foreign exchange market. Thus, Stewart must convert U.S. funds to...
A company that needs to borrow $1000000 is offered different terms from 2 banks. Bank A...
A company that needs to borrow $1000000 is offered different terms from 2 banks. Bank A expects the load to be amortized with annual payments at an annual interest rate of i=.08. Bank B requires annual interest payments at a rate of i=.06 and annual deposits into a sinking fund that earns interest at i=.02. In both cases the loan is to be paid off in 10 years. Which bank is offering the better deal? Calculate the total annual cost...
r 2. A company wishes to fund a major project. it will raise 20 million as...
r 2. A company wishes to fund a major project. it will raise 20 million as follows 4 million is bank loan, 6 million in retained earnings, 3 mitlion in common bonds. The bank loan is 12% per year compounded monthly. The pee pe stock is 16.00, 35 cents per share is the earnings per share. year compounded quarterly. What is the weighted average cost of income tax rate of 30%. and 7 million in The bonds yield 4% per...
Omar just took out a loan from the bank for 142,894 dollars. He plans to repay...
Omar just took out a loan from the bank for 142,894 dollars. He plans to repay this loan by making a special payment to the bank of 26,888 dollars in 3 months and by also making equal, regular monthly payments of X. If the interest rate on the loan is 0.8 percent per month, he makes his first regular monthly payment later today, and he makes his last regular monthly payment made in 7 months from today, then what is...
A hedge fund is considering making a 5-year $600,000, 9.5% APR, interest-only loan. They will get...
A hedge fund is considering making a 5-year $600,000, 9.5% APR, interest-only loan. They will get monthly interest payments and the entire principal at the end of 5 years. Before making the loan, it will cost the fund $20,000 for due diligence, and after making the loan, it will cost the fund $500 per month for monitoring. Based on only the information above (to be even more clear, ignoring taxes), and assuming the borrower makes all the required payments on...
Your company needs $14,800,000 for a fairly risky project. The company expects to use retained earnings...
Your company needs $14,800,000 for a fairly risky project. The company expects to use retained earnings to fund $5,200,000 of this amount, sell bonds for another $5,000,000, and borrow the rest on a term loan. The bond rate is expected to be 12%, and the loan rate is expected to be 10%. The company's B value is 1.6, the risk-free interest rate is 2%, and the market return rate is 8%. The marginal tax rate is 28%. What is the...
in engineering economic
First question Consider a cash flow diagram in current value that includes 6 equal end-okycar payments. The value of each payment is X. a. Calculate X, assuming the present worth is 500S) the future worth at the end of the 6th year in current value will bei 000s, and the predictable inflation is2%peryear. b. What are the payments real values? Xr 4.22
4, Jim needs to borrow $500 for 60 days. Bank is offering to loan the money at 9% bank discount rate. (a) What would be the maturity value on this loan? (b) What rate of simple discount would be equivalent to this loan? 5. A couple purchased a house and signed a mortgage contract for $350 000 to be paid in monthly installments over 25 year, at 3.5%. The contract stipulates that after 5 years the mortgage will be renegotiated...
You need a $10,000 car loan and are talking to two different banks. FIN 3013 Project 2. Time Value of money. Sarwar Se i. Big Bank offers you a $10,000 auto loan requiring 48 monthly payments of $275. paid at the end of each month. What is the APR of the loan? What is the effective annual rate? ii. Little Bank's loan has 4 annual year-end instalments, each equal to 12 times the Big Bank monthly loan payments, e.g. Payment...
nituen beak han hon bands VRE in an end. A company wishes to fund a new project. The total co from a bank loan, 12 million will be funded earnings and the rest from com the rest from common stock with dividends. The bank loan will be 12% per year con yearly with quarterly payments. Dividends will dollars. The combined tax rate is 35%. What is must show your calculations in detail. ect. The total cost will be 40 million....
r 2. A company wishes to fund a major project. it will raise 20 million as follows 4 million is bank loan, 6 million in retained earnings, 3 mitlion in common bonds. The bank loan is 12% per year compounded monthly. The pee pe stock is 16.00, 35 cents per share is the earnings per share. year compounded quarterly. What is the weighted average cost of income tax rate of 30%. and 7 million in The bonds yield 4% per...
Your company needs $14,800,000 for a fairly risky project. The company expects to use retained earnings to fund $5,200,000 of this amount, sell bonds for another $5,000,000, and borrow the rest on a term loan. The bond rate is expected to be 12%, and the loan rate is expected to be 10%. The company's B value is 1.6, the risk-free interest rate is 2%, and the market return rate is 8%. The marginal tax rate is 28%. What is the...
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