HW2_2023

Sarah Palin reportedly was paid a $11 million advance to write her book Going Rogue. The book took one year to write. In the time she spent writing, Palin could have been paid to give speeches and appear on TV news as a political commentator. Given her popularity, assume that she could have earned $8 million over the year (paid at the end of the year) she spent writing the book. Assume that once her book is finished, it is expected to generate royalties of $5 million in the first year (paid at the end of the year) and these royalties are expected to decrease by 40% per year in perpetuity. Assuming that Palin's cost of capital is 10% and given these royalties payments, the NPV of Palin's book deal is closest to:

PLEASE ANSWER THE QUESTIONS BELOW AND BE SURE TO SHOW THE FORMULAS AND THE WORK. THANIK YOU :) 1) Janet purchased a new house for $120,000, obviously not in New York. She paid $35,000 down and agreed to pay the rest over the next 25 years in 25 equal end-of-year payments, plus 9% compound interest on the unpaid balance.  What will these equal payments be?

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $600,000 today and annuity payments for the balance. The first payment will be for $280,000 in three months. The payments will increase at 1.3 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Value of offer

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $220,000 in three months. The payments will increase at 1.9 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer two decimal places.

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $220,000 in three months. The payments will increase at 1.9 percent per quarter and a total of 20 quarterly payments will be made. If you require an EAR of 8 percent, how much are you being offered for your company? (Do not round intermediate calculations and round your answer two decimal places.      Only type answer and give answer fast

You have successfully started and operated a company for the past 10 years. You have decided that it is time to sell your company and spend time on the beaches of Hawaii. A potential buyer is interested in your company, but he does not have the necessary capital to pay you a lump sum. Instead, he has offered $500,000 today and annuity payments for the balance. The first payment will be for $270,000 in three months. The payments will increase at 1.4% per quarter and a total of 30 quarterly payments will be made. If you require an EAR of 13%, how much are you being offered for your company? (Do not round intermediate calculations. Round your answer to 2 decimal places, e.g., 32.16.)

Melannie Bayless has purchased a business building for $331,000. She expects to receive the following cash flows over a 10-year period: Year 1: $43,000 Year 2: $58,500 Year 3-10: $89,000 What is the payback period for Melannie? Round your answer to one decimal place.fill in the blank  What is the accounting rate of return? Enter your answer as a whole percentage value (for example, 16% should be entered as "16" in the answer box).fill in the blank

Required information [The following information applies to the questions displayed below.] Seiko's current salary is $118,000. Her marginal tax rate is 32 percent, and she fancies European sports cars. She purchases a new auto each year. Seiko is currently a manager for Idaho Office Supply, Inc. Her friend, knowing of her interest in sports cars, tells her about a manager position at the local BMW and Porsche dealer. The new position pays only $100,000 per year, but it allows employees to purchase one new car per year at a discount of $21,200. This discount qualifies as a nontaxable fringe benefit. In an effort to keep Seiko as an employee, Idaho Office Supply, Inc. offers her a $10,200 raise. Answer the following questions about this analysis. b-1. Financially, which offer is better for Seiko on an after-tax basis? Car dealer's offer Current employer's offer Both offers b-2. By how much is the offer better for Seiko on an after tax basis (Assume that Seiko is going to purchase the new…

Your father's employer was just acquired, and he was given a severance payment of $375,000, which he invested at a 7.5% annual rate. He now plans to retire, and he wants to withdraw $35,000 at the end of each year, starting at the end of this year. How many years will it take to exhaust his funds, i.e., run the account down to zero?

Angela wants to take the next five years off work to travel around the world. She estimates her annual cash needs at $34,000 (if she needs more, she will work odd jobs). Angela believes she can invest her savings at 8% until she depletes her funds. (Click the icon to view Present Value of $1 table.) of $1 table.) (Click the icon to view Future Value of $1 table.) of $1 table.) Read the requirements. (Click the icon to view Present Value of Ordinary Annuity (Click the icon to view Future Value of Ordinary Annuity Requirement 1. How much money does Angela need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 8% interest rate, Angela needs

Jane just inherited $30,000 from a rich uncle. She decides to invest the money for a period of 5 1) years and then use the accumulated amount to make a down payment on a new house. EzMoney, Inc. is willing to pay 6% per year compounded monthly on a five-year investment, but they will charge an administrative fee that is 2% of the amount invested and this has to be paid initially at the time of investment. HiReturn, Inc., offers 5.75% per year compounded daily if she deposits the entire amount in their premier investment fund. Which investment option should Jane choose and why?

6. Boilermaker Design, Inc. (BD) has an employment contract with its newly hired CEO. The contract requires a lump sum payment of $5 million be paid to the CEO upon the successful completion of her first three years of service. BD wants to set aside an equal amount of money at the end of each year to cover this anticipated payment and will earn 8% on the funds. How much must BD set aside each year for this purpose?

Karl Yates needs $6,000 to pay for the remodeling work on his house. A contractor agrees to do the work in 10 months. How much should Karl deposit at 6.9% in order to accumulate the $6,000 by that time? Karl should deposit $ (Round to the nearest cent.)