Q1. The utility bill of Master Fiber Recycling has been increasing by $400 per year. If the utility bill in year 1 is $3,500, what would be the equivalent annual worth in years 1 thru 6 at an interest rate of 20% per year? Write the solution steps (A) $3,512 (B) $3,962 (C) $4,106 (D) $4,292

Q1. The utility bill of Master Fiber Recycling has been increasing by $400 per year. If the utility bill in year 1 is $3,500, what would be the equivalent annual worth in years 1 thru 6 at an interest rate of 20% per year? Write the solution steps (A) $3,512 (B) $3,962 (C) $4,106 (D) $4,292

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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How much will $3,000 invested at the end of each year grow to in 4 years, assuming an interest rate of 11% compounded annually? Note: Use tables, Excel, or a financial calculator. Round your final answer to the nearest whole dollar. (FV of $1, PV of $1, FVA of $1, and PVA of $1). Multiple Choice $13,663 $14,129 О $12,729 $13,200
PART C.) The cost of replacing part of a cell phone video chip production line in 6 years is estimated to be $500,000. At an interest rate of 10% per year, compounded quarterly, the uniform amount that must be deposited every 3 months is?
Suppose you expect to increase the amount of tractors your tractor manufacturing company sells at 9% per year for the next ten years. If you currently sell 500 tractors a year, how many tractors will you be selling in ten years? 1. 1,350 2. 990 3. 1,183 4. 1,422 5. 1,052
13. You can purchase a 10,000 square foot office building for $1,900,000. You can finance your purchase with an 80% loan at 4.675% interest, requiring monthly payments over 25 years. Rents are $24.00 per square foot and expenses are $10.00 per square foot. You project vacancy to be 12% in years 1 and year 2, 8% in year 3 then 6% thereafter. You expect that rents will increase by 6% per year for years 2 and 3, then increase by 4% thereafter. You believe that expenses willincrease at a fixed rate of 5% per year. You expect to sell the building on a 7 cap, based on the following year’s income. For a holding period of 8 years. What is the (BEFORE TAX): Before Tax IRR on Equity ? Before Tax NPV @ 12% ?
Present value with periodic rates. Cooley Landscaping needs to borrow $25,000 for a new front-end dirt loader. The bank is willing to loan the money at 8% interest for the next 6 years with annual, semiannual, quarterly, or monthly payments. What are the different payments that Cooley Landscaping could choose for these different payment plans? C What is Cooley's payment for the loan at 8% interest for the next 6 years with annual payments? $ (Round to the nearest cent.)
(Solving for n) How many years will it take for $500 to grow to $1039.50 if it's invested at 5 percent compounded annually?
QUESTION 1 You plan to buy a machine that has a total cost of RM90,400. You will make a down payment of 10% of the price of the machine. The remainder of the machine’s cost will be financed over a period of 5 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 10% compounded monthly. (a) What will the monthly payment be? (b) If you make a monthly payment at the beginning of every month, how would your answer change in (a)? Briefly explain. Note: 1Please clear question answer no Whois one (a),& (b) 2. No need excel formula
please answer fast i give upvote
Using the BA II Plus how do I find the solution to The Humpty Dumpty Food Store will be setting aside 35,000 each quarter starting next quarter, for the next four years. How much money will the firm have in four years if it can earn 6.25 % on its savings?
You would like to buy a new car. The car costs will be $81 500. If you can earn 12% per annum, how much do you have to invest today to buy the car in three years? Select one: a. None of the given answers is correct. b. $58 244.14 c. $58 145.32 d. $58 010.09
a. Renting a machine will need monthly payments of $6,000 for the next 5 years (i.e., at t = 1, 2, …, 60). However,if we choose to buy the machine today,which is (t = 0) will cost $320,000. Assume the machine's value is zero after 5 years. It is possible to borrow and lend at a semi-annually compounded interest rate of 6% (APR). Would it be better to buy or to lease? Explain. b.We are currently at year 0. It is worthy to note that there is a perpetuity that pays $250 at the end of each odd year and $150 at the end of each even year. The term structure is flat at 10% per year. Evaluate the present value of this perpetuity. c.Assume the CAPM is valid.The return on asset ABC is perfectly correlated with the return on market portfolio. Your friend makes the following statetment: a portfolio that had a dollar invested and at the same time,shorting one dollar of the market portfolio will have no systematic risk. Comment on this and whether it is feasible.
QUESTION 1 You plan to buy a machine that has a total cost of RM90,400. You will make a down payment of 10% of the price of the machine. The remainder of the machine’s cost will be financed over a period of 5 years. You will repay the loan by making equal monthly payments. Your quoted annual interest rate is 10% compounded monthly. a. What will the monthly payment be? b.If you make a monthly payment at the beginning of every month, how would your answer change in (a)? Briefly explain.

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