An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000? 36.80%. 36.86%. 40.00%. 40.55%.

An Apple Company would like to manufacture and market a new packaging. The company has sold an issue of commercial paper for R1 500 000 and maturity of 90 days to finance the new project. Assuming a 365-day year, what is the annual interest rate on the issue of commercial paper if the value of the commercial paper at maturity is R1 650 000? 36.80%. 36.86%. 40.00%. 40.55%.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 13EA: Jullo Company is considering the purchase of a new bubble packaging machine. If the machine will...

See similar textbooks

Similar questions

Question 11
Question 5
What amount today
Waiting for Answer
QUESTION 5 (a) (b) A printing machine which costs €20,000 today will increase in price by 8% per year as a result of inflation. (i) (ii) What would this machine cost in 3 years' time? If the firm wishes to purchase this machine by making 3 equal instalments [the first one now, the second one in one year's time and the third in two years' time], in a savings plan paying 5% per annum, how much should each instalment be? Show all workings A small business has a choice of investing €20,000 in one of two projects. The revenue received in each over the next four years is given below. (c) (i) End of year Project A Project B 1 6000 10000 2 3000 6000 3 10000 9000 4 8000 1000 If the discount rate is 12%, which of the two projects would you advise the company to invest in? (ii) Calculate the internal rate of return for your choice in part (i) above, use a discount rate of 15%. How much would €2,000 grow to in 3 years if it could earn 10% nominal interest which is compounded every six months.
Question 1 We just signed a lease contract in a 200,000 SF office building complex for $25/SF/year with rents paid in arrears (at the end of the year) annually. The rent will increase by 3% per year. The discount rate is 10%/year. a. What is the value of this office building, assuming that the building is sold at the end of year 10 and the cap rate at that time is expected to be 10%? What is the implied cap rate at time 0? b. What is the value of this office building, assuming that the building is sold at the end of year 10 and the cap rate at that time is expected to be the same as today? What is the implied cap rate at time 0 and 10? c. What is the value of this office building, assuming that the building will be held and rented indefinitely (perpetually)? What is the implied cap rate at time 0? d. What is the value if the rents are paid in advance (at the beginning of the year) and the building is rented perpetually?
NEED ANSWER AND SOLUTIONS ASAP
Jitu
P5-31 OE-31 Perpetuitics Yang is evaluating an investment that will pay CNY 150 in one year, and it will continue to make payments at annual intervals thereafter, but the payments will grow at 5% forever. a. What is the present value of the first CNY 150 payment if the discount rate is 9%? b. How much cash will this investment pay 100 years from now? What is the pres- ent value of the 100th payment? Again, use a 9% discount rate. c. What is the present value of the entire growing stream of perpetual cash flows? d. Explain why the answers to parts a and b help to explain why an infinite stream of growing cash flows has a finite present value? nal Finance Problem
PLS ANSWER THIS QUESTION ASAP WILL RATE YOU!
pls solve
QUESTION 18 A firm has annual operating outlays of R3 200 000 and a cash conversion cycle of 60 days. If the firm currently pays 12% for negotiated financing and reduces its cash conversion cycle to 45 days, the annual savings is ... (assume a 365-day year). R 8767. R 15 781. R131 505. R216 000.