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![9850
A= 3750
-10%
1
2
3
7 8 9
10 year
3% per year
6% per year
9% per year
Exercise:
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- 1 Per DETAILS BRECMBC9 11.1.020. Per MY NOTES ASK YOUR TEACHER The following investment requires table factors for periods beyond the table. Using Table 11-1, create the new table factor, rounded to five places, and calculate the compound amount (in $, rounded to the nearest cent.) Nominal Time Perlod (years) New Table Factor Principal Interest Compound Rate (%) Compounded Amount $18,000 29 6 annuallyHambelton Ltd. issued $5,000,000 of 5% bonds payable on 1 September 20X9 to yield 4%. Interest on the bonds is paid semi-annually and is payable each 28 February and 31 August. The bonds were dated 1 March 20X8, and had an original term of five years. The accounting period ends on 31 December. The effective-interest method is used. (PV of $1, PVA of $1, and PVAD of $1.) (Use appropriate factor(s) from the tables provided.) Required: 1. Determine the price at which the bonds were issued. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.) Price of Bond 2. Prepare a bond amortization table for the life of the bond. (Round time value factor to 5 decimal places. Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no cells blank - be certain to enter "O" wherever required.) Interest Interest Premium Unamortized Net Bond Date Payment Expense…9. Problem 11.02 (IRR) dofice eBook Project L costs $54,779.63, its expected cash inflows are $13,000 per year for 8 years, and its WACC is 11%. What is the project's IRR? Round your answer to two decimal places. %
- I f Topic 2: Linear Equations AT 9. A passbook savings account has a rate of 6%, Find the effective annual yie if the interest is compounded daily. Assume 360 days in a year. (Round to the nearest tenth of a percent, if necessary. For example, 20.5%) n 0.06 360 =C1+9 - C 1 36C -(t0.0a1 666) 360-1 . oo01 6666 360-1 3-1 360 1 1, o0ul 1019. for simple interest FIND THE UNKNOWN QUANTITY FOR EVERY GIVEN CONDITION (show your solution submit to classwork) t= 1 1/2 years, r = 10% F= P50,000 Find P and | *What annual rate of return is earned on a $10,000 investment when it grows to $15,000 in 10 years? Multiple Choice 5.00 percent О 1.50 percent О 3.97 percent О 4.14 percent
- nces Mc raw Mill Exercise 5-5 (Algo) Solving for unknowns; single amounts [LO5-4] For each of the following situations involving single amounts, solve for the unknown. Assume that interest is compounded annually. (i= interest rate, and n = number of years) (FV of $1. PV of $1. FVA of $1. PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided. Round your final answers to nearest whole dollar amount.) 1. 2. 3. 4. 5. Present Value Future Value $ $ $ $ i $ 80,000 4.5% 31,841 $ 94,000 15,762 $ 50,000 84,482 $ 200,000 13,291 8.0% 9.0% n 9 16 10 159. 8 7 4 1 End of Year 2000 1800 1600 1400 2,194 2,194 2,194 2,194 Revenue 286 286 286 286 Expenses 500 500 500 150 100 50 Costs For an interest rate of 10% per year and using the minimum number of factors Calculate the Future Worth LOces Year 0 1 Cash Flow (A) -$430,000 41,500 2 64,500 3 81,500 4 545,000 Cash Flow (B). -$ 42,500 20,900 12,800 21,100 17,900 The required return on these investments is 10 percent. a. What is the payback period for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. b. What is the NPV for each project? Note: Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. c. What is the IRR for each project? Note: Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e. d. What is the profitability index for each project? Note: Do not round intermediate calculations and round your answers to 3 decimal places, e.g., 32.161. e. Based on your answers in (a) through (d), which project will you finally choose? a. Project A Project B b. Project A Project B years years Q Search < Prev 5 of 5 Next L
- #3 HE Year Project A Project B 0 -$20,000 -$23,000 1 2 3 15,200 5,900 2,100 14,300 8.100 7,100 Suppose the company uses the NPV rule to rank these two projects. Which project should be chosen if the appropriate discount rate is 15 percent?Bau Long-Haul, Incorporated, is considering the purchase of a tractor-trailer that would cost $358,263, would have a useful life of 7 years, and would have no salvage value. The tractor-trailer would be used in the company's hauling business, resulting in additional net cash inflows of $81,000 per year. The internal rate of return on the investment in the tractor-trailer is closest to (Ignore income taxes.): Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using the tables provided. 02 Multiple Choice 13% 12% 15% 9:25 a 4/25/2 here to search acer 近Question 3 You are starting a new project.This project would last 4years. The following is the input information that you have collected: Buildinf cost(1.3% in the first year and 2.6% every year)....................................$12,000,000 Equipment cost (MACRS 5 years)........................................................................$8,000,000 Net operating working capital requirement(% of sales)...........................................10% First year sales(in units)............................................................................................20,000 Growth rate in units sold.............................................................................................0% Sales price per unit......................................................................................................$3,000 Variable cost per unit.....................................................................................................$2,100 Fixed…
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