Engr. Richard Flores has P 13, 760 in cash and he would like to invest it in business. His estimates of the year-by-year receipts and disbursements for all purposes are shown in the tabulation below: Year Receipts Disbursements - P 13, 760 P 5, 000 + P 1, 000 P 6, 200 + P 1, 200 6. P 7, 500 + P 1, 500 P 8, 800 + P 1, 800 He estimates that this equipment will have a salvage value of P 2, 000 at the end of useful life. Find the rate of return of the prospective investment. O 10. 11%

Engr. Richard Flores has P 13, 760 in cash and he would like to invest it in business. His estimates of the year-by-year receipts and disbursements for all purposes are shown in the tabulation below: Year Receipts Disbursements - P 13, 760 P 5, 000 + P 1, 000 P 6, 200 + P 1, 200 6. P 7, 500 + P 1, 500 P 8, 800 + P 1, 800 He estimates that this equipment will have a salvage value of P 2, 000 at the end of useful life. Find the rate of return of the prospective investment. O 10. 11%

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Options for A: 1.10% , 1.89% , 2.43% , 3.12% , 3.90% Options for B: 7.78% , 6.22% , 3% , 4% , 5.38% Options for C: 3.18% , 2.43% , 5.01% , 5.89% , 4.24%
Che Lou Barlow, a divisional manager for Sage Company, has an opportunity to manufacture and sell one of two new products for a five- year period. His annual pay raises are determined by his division's return on investment (ROI), which has exceeded 19% each of the last three years. He has computed the cost and revenue estimates for each product as follows: ProductA Product B Initial investment: Cost of equipment (zero salvage value) Annual revenues and costs: Sales revenues Variable expenses $ 190,000 $ 400,000 $ 270,000 $ 128,000 $ 38,000 $ 72,000 $ 370,000 $ 178,000 $ 80,000 $ 52,000 Depreciation expense Fixed out-of-pocket operating costs The company's discount rate is 17%. Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor using tables. Required: 1. Calculate the payback period for each product. 2. Calculate the net present value for each product. 3. Calculate the internal rate of return for each product. 4. Calculate the profitability…
A. 12,000.00 B. 23,200.00 C. 26,000.00 D. 19,100.00
The most recent financial statements for Live Co. are shown here: Income Statement Sales Costs Taxable income Taxes (35%) Net income $13,000 Current assets Fixed -assets. $5,200 Total 1,820 $3,380 7,800 Balance Sheet $28,032 Debt 19,616 Equity $47,648 Total $27,628 20,020 $47,648 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 32 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round your intermediate calculations.)
The most recent financial statements for Live Co. are shown here: Income Statement Sales Costs Taxable $15,000 income 9,000 Current assets Fixed -assets $6,000 Total Taxes (33%) 1,980 Net income $4,020 Balance Sheet $32,345 Debt 22,633 Equity $31,878 23,100 $54,978 Total $54,978 Assets and costs are proportional to sales. Debt and equity are not. The company maintains a constant 30 percent dividend payout ratio. No external equity financing is possible. Required: What is the sustainable growth rate? (Do not round your intermediate calculations.)
j 1 2 3 4 5 Pr 0.15 0.10 0.55 0.15 0.05 Return, r 20.00% 5.00% 0.00% - 5.00% - 10.00%
Why was 66.66% was used in question h instead of 33.33%
J 3 I got 10.01% for part a.
Rosa Burnett needs $6,000 in three years to make the down payment on a new car. How much must she invest today if she receives 2.5% interest annually, compounded annually? Click the icon to view the present value of $1.00 table. She must invest $ (Round to the nearest cent as needed.)
Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds are listed in the following table. If the corporate tax rate is 35 percent, what is the aftertax cost of Ying's debt? Bond 1 234 Coupon Rate 5.6% 6.5 5.4 6.8 Price Quote Maturity Face Value 7 years $22,000,000 12 years 23 years 37 years 105 113 103 114 36,000,000 42,000,000 59,000,000
A. $1,120 B. $2,240 C. $2,426.67 D. $4,853.33
a. Choice 1 b. Choice 5 c. Choice 3 d. Choice 4 e. Choice 2

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