Answer the following problems: 1. A loan of 10,000 has been issued for 6-years. Compute the amount to be repaid by borrower to the lender if simple interest is charged @ 5% per year.

Q: List two advantages of using NPV.

A: Net present value is the difference between the present value of cash inflows and the present values…

Q: Consider a position of two purchased calls (AT&T, three months, K30) and one written put (AT&T,…

A: Delta is a commonly used Greek letter in options trading to represent the sensitivity of an option's…

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: WE NEED ALSO WITH FORMULA  SOLUTION THIS ABOVE QUESTION IN EXCEL

A: Ratio analysis is used to evaluate relationships between financial statement components. The ratios…

Q: Describe about the DVL methods and what are its advantages?

A: Dollar-value-LIFO: This method shows all the inventory figures at a dollar price rather than units.…

Q: What are some of the advantages of a multi-step approach?

A: An extensive examination of a company's costs and net income is provided by a multi-step income…

Q: Describe the differences between a formula and a function?

A: A formula is an equation or expression that, when entered into a spreadsheet or other application,…

Q: Select a project on the basis of PPB and IRR with a mathematical example.

A: IRR Annual growth rate of growth that is estimated to be generated from an investment.

Q: can you show this in excel with the necessary formulas?

A: Trial balance is a worksheet/list of ledger accounts which are sorted into debit and credit…

Q: From where has the concept DU pont Analysis comes?what’s the formula?

A: Ratio Analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Write two examples of SWOT analysis

A: 2. SWOT analysis for Sedibeng Breweries Strength: Capital stock: A strong capital base has been…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: What is Monte Carlo simulation?

A: The question is based on the concept of Monte Carlo simulation, the method is based on  stochastic…

Q: How might the optimal solution of a linear programming problem be determined?

A: Linear programming problem: Linear programming problem is the method of the business through which…

Q: Briefly explain the usefulness of a sensitivity graph

A: A sensitivity graph depicts all the assumption results on the final outcome in the exercise of…

Q: Discuss the following. 1. The Advantages of Linear Programming in Decision Making b. The…

A: Advantages of Linear Programming in Decision Making:Optimal Solutions: Linear programming helps in…

Q: How do your answers in parts (a) and (b) relate to the theory of constraints? Explain.

A: Introduction:- Constraints theory used to identifying the most important limiting factor that…

Q: Explain

A: LCNRV method means Lower of cost and net realizable value method.

Q: What are the cell #s in the NPV formula?

A: The difference between the present value of cash inflows and the present value of cash outflows over…

Q: Realization Test Principle/Theory.

A: Accounting is based on some principles, and to maintain uniformity, everyone must follow accounting…

Q: Give an example of each.

A: Cost standard example: The estimation to regulate the entire direct material cost standard and…

Q: Illustrates how you may obtain the true IRR by using the Goal Seek function?

A: IRR refers to the rate of return at which the net present value of a project is zero. This is the…

Q: Explain about the Black–Scholes model.

A: Black Scholes option pricing model is probably the most commonly used option pricing model in…

Q: What is Monte Carlo simulation analysis?

A: Answer: Monte Carlo simulation is the methodology used to consider the financial, cost, and project…

Q: What would be the equasion for solving this

A: Formula for calculating yearly payment: Yearly payment=(Loan amount * Rate%)1-1(1+Rate%)n

Q: Explain the drawbacks of IRR over MIRR with example?

A: Capital budgeting is part of investment decisions. Business firms consider capital budgeting in…

Q: Modigliani and Miller's Method - discuss briefly

A: Modigliani-Miller Theorem: It represents one of the most significant theorems in the field of…

Q: Consider REMICs?

A: A real estate mortgage investment conduit (REMIC) is a difficult puddle of mortgage securities…

Q: Explain the put call parity model. What are the advatages and disavantages of it?

A: Put-call parity characterizes the connection between calls, puts and the underlying assest price or…

Q: . What is linear programming? Briefly explain the usefulness of the model.

A: A mathematical optimization technique called linear programming is used to determine the optimal…

Q: What is the actual formula used to get this answer?

A: Present value of annuity Annuity is a series of equal payments at equal interval over a specified…

Q: Explain an example of faithful representation.

A:

Q: Elaborate/Explain Integer Linear Optimization and give example

A: Answer:- Integer linear optimization is a further version of linear programming where the condition…

Q: Draw a figure to explain Elements of required return - establishing a MARR?

A: The figure is represented as below: Note: Values assumed

Q: Describe the fundamentals of Replacement-Analysis?

A: Replacement analysis is the process where it is determined whether it would be beneficial to replace…

Q: How to do the according equation

A: Accounting Equation is the double-entry system used by the organization to get the balance sheet and…

Q: Describe the three steps in solving a linear programming problem.

A: Linear programming problem: Linear programming problem is the method of the business through which…

Q: What are the Replacement-Analysis Fundamentals?

A: Replacement analysis refers to the process where an organization determines whether it is beneficial…

Q: you

A: a) The expected dividends for the next 4 years are:   Year 1: $3.00 x 1.08 = $3.24 Year 2: $3.24 x…

Q: Describe the process of calculating NPV.

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…