6. Suppose firms have calculated output to be 900, which would result in PAE of1000. How would firms act and why?7. How much money will Jan hold if the nominal interest rate is 4% and she wantsher money holdings in multiples of $100?Average moneyholdingsTotal benefit$700$50$800$59$900$66$1,000$71$1,100$748. How much must you deposit if a bank offers 2% interest and your goal is to have$1500 next year?

As per our protocol we provide solution to one question only but as you have asked three questions…

Answered: 8. How much must you deposit if a…

Business

Accounting

8. How much must you deposit if a bankoffers 2% interest and your goal is to have $1500 next year?

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter4: Time Value Of Money

Section: Chapter Questions

Problem 1cM

See similar textbooks

Similar questions

4. Suppose you run a firm and have access to an investment technology that delivers y = 1.03 · I in real terms, given investment I. Suppose you have 1, 000GBP in cash. Suppose banks’ deposits yield 2% interest rate. Will you invest your cash holding in the investment technology? What if you had no cash, but could borrow from the bank at the same interest rate as the return on deposits? Suppose you now have access to the four investment projects from Table 1. Which project(s) will you finance if r = 0.05? Table 1: Possible investment projects Project Investment needed Pay off A. 1000。 1038 B。 2500。 2600 C。 100. 110 D. 160. 220
(Ignore income taxes in this problem.) Your Company is considering an investment that has the following data: Year 1 2 3. 4. Investment $20,000 Cash inflow $2,000 $2,000 $5,000 $4,000 $60,000 In what year does the payback period for this investment occur? O Year 2. O Year 3. Year 4. Year 5.
Choose the letter of correct answer A firm's current assets and current liabilities are P25,000.00 and P18,000.00 respectively. How much additional funds can it borrow from banks for short term, without reducing the current ratio below 1.35 times *a. P1,000.00b. P2,000.00c. P3,000.00d. P4,000.00e. P5,000.0
What is the opportunity cost of Golden Co. in keeping a cash balance of P2,000,000, if the daily interest rate is 0.02% and the average transaction cost of investing money overnight is P25? P400 P25 P40,000 P375
Can someone please help me to solve the following question showing all work and formulas neatly. And please show the cash flow diagram as well. PLEASE ANS THANK YOU!!!!!
need answers for number 3
Hi, I need with part C and D please.
2
a firm wants to start a project. A team of financial analysts estimated the following cash flows; Year Cash flow 0 -$100000 1 $55000 2 $43000 3 $45000 1. Suppose the discount rate (interest rate) is 12%, what is the NPV? 2. Suppose that the discount rate (interest rate) is 12%, according to the calculation of NPV we should? 3. the payback period is? 4. Based on the payback period calculations and if the cut off point is 2 years, the project should? 5. Suppose that the discount rate (interest rate) is 12%, the profitability index (PI) is? 6. suppose that the discount rate (interest rate) is 12% based on the PI calculation, the project should?
Make a cash flow diagram of the problem below. Only cash flow diagram, I am not asking you to answer the problem just show me the correct cash flow diagram. Thanks in advance!!!
A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,500 1,900 2,200 B $1,400 1,400 1,400 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.PV(Investment A): $ PV(Investment B): $ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment?The present value of investment A is -Select-less than greater than Item 3 the cost.The present value of investment B is -Select-less than greater than Item 4 the cost.
A company has two investment possibilities, with the following cash inflows: Investment Year 1 Year 2 Year 3 A $1,000 1,400 1,800 B $1,700 1,700 1,700 If the firm can earn 6 percent in other investments, what is the present value of investments A and B? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar.PV(Investment A): $ __________PV(Investment B): $ __________ If each investment costs $4,000, is the present value of each investment greater than the cost of the investment? The present value of investment A is __less than___ / __greater than__ the cost. The present value of investment B is __less than___ / __greater than__ cost.