Seven annual payments of $2,500 @ 6%. Please identify which table you used
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A: Future value (FV) = $12500.00 Semi annual deposits (PMT) = $550 Compounding per year (C/Y) = 12…
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A: Monthly payment = $430.33 Number of monthly payments = 12 Loan amount = $5000 Interest rate = 6%
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Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Seven annual payments of $2,500 @ 6%.
Please identify which table you used.
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- Shuttle Company issued $1,000,000, three-year, 10 percent bonds on January 1, year 1. The bond interest is paid each December 31, the end of the company's fiscal year. The bond was sold to yield 9 percent. Use Table 9C.1, Table 9C.2. (Round time value factor to 4 decimal places.) Required: 1. Complete a bond payment schedule. Use the effective-interest amortization method. (Make sure that the unamortized discount/premium equals to '0' and the Net Liability equals to face value of the bond in the last period. Interest expense in the last period should be calculated as Cash Interest (+) discount / (−) premium amortized. Round intermediate and final answers to the nearest whole dollar.) Date 1/1/year 1 12/31/year 1 12/31/year 2 12/31/year 3 Interest expense Bonds payable Interest payment Issuance of bonds Payment of bonds Bond Payment Schedule Interest Expense Cash Payment $ 100,000 100,000 100,000 Amortization of Premium 2. What amounts will be reported on the financial statements…Use these factors to answer the following questions. i PV$1 FV$1 PVA FVA 3 8% 0.79383 1.25971 2.5771 3.2464 5 8% 0.68058 1.46933 3.99271 5.8666 60 0.67% 0.67121 1.48985 49.31843 73.4769 1 You decide to save $410 every month for five years to buy a new car. How much will you have at the end of the five years if you earn 8%? $ (round to nearest dollar) You want to buy a $30,000 car today and will be making monthly payments for the next five years. What is your car payment if your borrowing rate is 8%? $ (round to nearest dollar) 3 You accepted a job offer with a local company that has offered to give you a signing bonus of $10,000 today or a $13,000 bonus in 3 years (guaranteed). Your current investment rate is 8%. What is the best economic decision, take the bonus today or wait 3 years? 4 You plan to invest $2,500 every year for the next 5 years. What will be the value of your investment at the end of the 5 years if (round to nearest dollar) you can earn 8% annual interest? $ Your…TABLE 9C.2 Present Value of Annuity of $1, p = [1-1/(1+]/i 3.25% 3.5% 1 2 3 4 5 6 7 6.5982 6.5346 8 7.4859 7.4051 7.4051 7.3255 7.2472 9 8.3605 8.2605 8.1622 8.0657 9.2222 9.1012 8.9826 8.8662 10 11 12 13 14 15 Periods 1.5% 1.75% 2% 2.25% 2.5% 2.75% 3% 0.9852 0.9828 0.9804 0.9780 0.9756 0.9732 0.9709 0.9685 0.9662 1.9559 1.9487 1.9416 1.9345 1.9274 1.9204 1.9135 1.9066 1.8997 2.9122 2.8980 2.8839 2.8699 2.8560 2.8423 2.8286 2.8151 2.8016 3.8544 3.8309 3.8077 3.7847 3.7620 3.7394 3.7171 3.6950 3.6731 4.7826 4.7479 4.7135 4.6795 4.6458 4.6126 4.5797 4.5472 4.5151 5.6972 5.6490 5.6014 5.5545 5.5081 5.4624 5.4172 5.3726 5.3286 6.4720 6.4102 6.3494 6.2894 6.2303 6.1720 6.1145 7.1701 7.0943 7.0197 6.9462 6.8740 7.9709 7.8777 7.7861 7.6961 7.6077 8.7521 8.6401 8.5302 8.4224 8.3166 10.0711 9.9275 9.7868 9.6491 9.5142 9.3821 9.2526 9.1258 9.0016 10.9075 10.7395 10.5753 10.4148 10.2578 10.1042 9.9540 9.8071 9.6633 11.7315 11.5376 11.3484 11.1636 10.9832 10.8070 10.6350 10.4669 10.3027 12.5434…
- enters Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she college (17 years from now). If her tuition is projected to be $40,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is S. (Round to the nearest cent as needed.)Governorate Optional Initial Years: Values in OMR Project Investment 2022 2023 2024 2025 2026 2027 Ad Land 30000 7000 15000 14000 22000 Nil 5000 development Ad Dhahirah Ceramic products Dakhiliyah 24000 8000 5000 10000 4000 12000 10000 Al Batinah Fish 54000 6000 9000 12000 11000 10000 12000 North Processing Al Batinah Clay and pots 18000 6000 5000 7000 9000 8000 6000 South Al Buraymi Desert 5000 20000 Nil 50000 12000 22000 10000 camping Rock Garden Al Wusta 100000 20000 25000 18000 26000 22000 Nil Ash Ship Building 84000 16000 14000 12000 40000 30000 35000 Sharqiyah North Ash Turf racing 14000 15000 20000 42000 8000 7000 6000 Sharqiyah track South Dhofar Hotel chain 150000 26000 25000 20000 35000 29000 50000 Oil refinery 120000 22000 30000 50000 24000 20000 Muscat 40000 Musandam Date farming 48000 20000 25000 14000 60000 9000 8000 Required : Calculate the following investment appraisal criteria for THREE optional projects (Selection is from your own choice): 1. i. Accounting Rate of…Hambelton 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…
- A 12-cylinder heavy-duty diesel engine will have a guaranteed residual value of $1,000 in five years. Today (year 0) the equivalent worth of this engine is how much if the interest rate is 9% per year? Click the icon to view the interest and annuity table for discrete compounding when i = 9% per year. Today (year 0) the equivalent worth of this engine is $ (Round to the nearest cent.)Present Value of $1 Periods 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 0.980 0.961 0.943 0.907 0.907 0.890 0.873 0.857 0.842 0.826 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.794 0.772 0.751 4 0.961 0.924 0.888 0.855 0.823 0.792 0.763 0.735 0.708 0.683 5 0.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.621 6 0.942 0.888 0.837 0.790 0.746 0.705 0.666 0.630 0.596 0.564 7 0.933 0.871 0.813 0.760 0.711 0.665 0.623 0.583 0.547 0.513 8 0.923 0.853 0.789 0.731 0.677 0.627 0.582 0.540 0.502 0.467 9 0.914 0.837 0.766 0.703 0.645 0.592 0.544 0.500 0.460 0.424 10 0.905 0.820 0.744 0.676 0.614 0.558 0.508 0.463 0.422 0.386 Present Value of Ordinary Annuity of $1 Periods 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% 10.00% 1 0.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 2 1.970 1.942 1.913 1.886 1.859 1.833 1.808 1.783 1.759 1.736 3 2.941 2.884…Current Attempt in Progress Michael is planning for his retirement this year. One option that has been presented to him is the purchase of an annuity that would provide a $38,000 payment each year for the next years. Click here to view the factor table. Calculate how much Michael should be willing to pay for the annuity if he can invest his funds at 7%. (For calculation purposes, use 4 decimal places as displayed in the factor table provided and round final answer to O decimal place, e.g. 58,971.) Payment $ eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer
- Allegience Insurance Company's management is considering an advertising program that would require an initial expenditure of $172,120 and bring in additional sales over the next five years. The projected additional sales revenue in year 1 is $79,000, with associated expenses of $27,000. The additional sales revenue and expenses from the advertising program are projected to increase by 10 percent each year. Allegience's tax rate is 30 percent. (Hint: The $172,120 advertising cost is an expense.) Use Appendix A for your reference. (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the payback period for the advertising program. 2. Calculate the advertising program's net present value, assuming an after-tax hurdle rate of 10 percent. (Round your intermediate calculations and final answer to the nearest whole dollar.) 1. Payback period 2. Net present value yearsWhat is the value to be given to product Del? A. P25,000 B. P21,000 C. P24,000 D. P20,0009. 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 LO