What is the value today of a money machine that will pay $2,314.00 every six months for 22.00 years? Assume the first payment is made 1.00 years from today and the interest rate is 11.00%.

the answer is 36,098.07, can you please show me how you get to that answer? either by formula or calculator is fine

(the question is right, the question said that the 1st payment is made by the end of year 1 and not by the end of 6 months) -in response to the comment

Sales 3 million dollars per year Cost of goods 1.7 million dollars per year Cash Expenses 725 thousand dollars per year Depreciation Expense 125 thousand dollars per year Cash on the balance sheet 150 thousand dollars Receivables on the balance sheet 75 thousand dollars Inventory on the balance sheet 300 thousand dollars Fixed asset net of depreciation on the balance sheet 450 thousand dollars Total Current Liabilities on the balance sheet 175 thousand dollars Total Long Term Debt on the balance sheet 600 thousand dollars Your required return if you invest in this business is 20 percent. This is the figure you will use to calculate the present value of EBITDA. You will also buy the receivables and inventory from the current owner. But you will not buy the cash on the balance sheet. You will assume all current liabilities and all total long-term debt of the business. Assignment: 1. Create an income statement (down to EBIT) and a balance sheet using the data provided above. The balance sheet should include total assets and total liabilities and equity. Use the format for these statements that is shown in the example within the week four online lecture A Simple Way to Value a Business. (15 points) 2. Calculate EBITDA for this business. (5 points) 3. Calculate the business value for this business using the formula in the week four online lecture A Simple Way to Value a Business. There is an example in this lecture that should be carefully studied. (10 points) Clearly identify each problem with the number 1, 2, or 3 associated with it. This makes it possible to grade your problems. Please submit your work as an excel file.

Future value of an annuity 

a.  Calculate the future value of the​ annuity, assuming that it is

​(1) An ordinary annuity.

​(2) An annuity due.

b.  Compare your findings in parts a​(1) and a​(2).

All else being​ identical, which type of annuity long dash—ordinary or annuity due long dash—is preferable as an​ investment? Explain why.

a.​ (1) The future value of the ordinary annuity is ​$____.

  ​(Round to the nearest​ cent.)

1. Jody is planning to buy a car for $15,000, putting 20% down in cash. The bank tells her that the interest rate on the loan will be 8% per year, compounded monthly, for a three-year loan. What is Jody’s monthly payment going to be?
2. Insurance policy promises to pay you and your heirs $1,000 per year forever, should you become ill. How much would you pay for this policy today if the opportunity cost of capital is 4.5%?
3. Mary estimated that she would have $222,870 in her account when she retires. However, suppose that Mary has now estimated that she would need $30,000 per year to live comfortably during her retirement. How long can Mary expect to make withdrawals during retirement before she will have depleted her account if she is earning 6% annually?
4. You decide to start investing in a savings account that earns 5% per year. One year from now, you plan on depositing $1,000 into the account, with the expectation that these deposits will grow by 2% each year for five years after the initial deposit (in other words, for a total stream of cash flows over six years). What is the present value of this stream of cash flows? How much will you have at the end of the deposit time period?

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is 5.4 % what are the NPVs of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

Marketing planning Process

- tools - SWOT analysis and how it is applied and examples please thanks!

You are choosing between two projects. The cash flows for the projects are given in the following table​ ($ million):

a. What are the IRRs of the two​ projects?

b. If your discount rate is 4.5%​, what are the NPVs of the two​ projects?

c. Why do IRR and NPV rank the two projects​ differently?

A company is considering the purchase of some equipment. The equipment costs $1,600,000. It lasts for 4 years, and would be depreciated straight line to a zero salvage value. Alternatively, the company could lease the equipment for 4 years. The leasing contract would include maintenance, and the lease payments would be due at the end of each of the four years. The company’s before-tax cost of debt is 10%. The tax rate is 40%. What is the breakeven lease payment per year that would make the company indifferent between buying, and leasing the equipment?

Please show the calculations. Thank you.

​(Percent of sales forecasting​) Which of the following accounts would most likely vary directly with the level of a​ firm's sales? Discuss each briefly. Yes No Yes No Cash ​____ ​____ Notes payable ​____ ​____ Marketable securities ​____ ​____ Plant and equipment ​____ ​____ Accounts payable ​____ ​____ Inventories ​____ ​____ Is cash likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​Yes, cash receipts vary directly with sales and have a relation to the​ firm's customers payment habits or the​ firm's policy regarding payments on its accounts payable. B. ​No, cash receipts follow sales with a lag related to the payment habits of the​ firm's customers and the​ firm's policy regarding payments on its accounts payable. Are marketable securities likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​No, marketable securities are not related to sales. B. ​Yes, the value of marketable securities varies directly with sales. Is accounts payable likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​No, accounts payable will not vary directly with sales. B. ​Yes, accounts payable will vary directly with sales. Is notes payable likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​No, notes payable will only follow sales if the firms uses a line of credit to finance its working capital needs. B. ​Yes, notes payable is likely to vary directly with sales. Is plant and equipment likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​Yes, plant and equipment is likely to vary directly with the level of sales. B. ​No, plant and equipment is not likely to vary directly with the level of sales. Are inventories likely to vary directly with the level of a​ firm's sales?  ​(Select the best choice​ below.) A. ​No, inventories are not likely to vary directly with the level of sales. B. ​Yes, inventories are likely to vary directly with the level of sales.

Problem 5-22
Yield to Maturity and Yield to Call

Arnot International's bonds have a current market price of $1,200. The bonds have an 12% annual coupon payment, a $1,000 face value, and 10 years left until maturity. The bonds may be called in 5 years at 109% of face value (Call price = $1,090).

1. What is the yield to maturity? Round your answer to two decimal places.
   %
2. What is the yield to call, if they are called in 5 years? Round your answer to two decimal places.
   %
3. Which yield might investors expect to earn on these bonds, and why?
   -Select-IIIIIIIVItem 3
   I. Investors would not expect the bonds to be called and to earn the YTM because the YTM is less than the YTC.
   II. Investors would expect the bonds to be called and to earn the YTC because the YTC is less than the YTM.
   III. Investors would expect the bonds to be called and to earn the YTC because the YTM is less than the YTC.
   IV. Investors would not expect the bonds to be called and to earn the YTM because the YTM is greater than the YTC.
4. The bond's indenture indicates that the call provision gives the firm the right to call them at the end of each year beginning in Year 5. In Year 5, they may be called at 109% of face value, but in each of the next 4 years the call percentage will decline by 1 percentage point. Thus, in Year 6 they may be called at 108% of face value, in Year 7 they may be called at 107% of face value, and so on. If the yield curve is horizontal and interest rates remain at their current level, when is the latest that investors might expect the firm to call the bonds?
   -Select- in Year 6in Year 7in Year 8in Year 9Bonds are always called

System A costs $305,000, has a 4-year life, and requires $105,000 in pretax annual operating costs. System B costs $385,000, has a 6-year life, and requires $99,000 in pretax annual operating costs. Suppose the company always needs a conveyor belt system; when one wears out, it must be replaced. Assume the tax rate is 23 percent and the discount rate is 11 percent.

Your company faces a 34% tax rate and has $258 million in assets, currently financed entirely with equity. Equity is worth $8.80 per share, and book value of equity is equal to market value of equity. Also, let's assume that the firm's expected values for EBIT depend upon which state of the economy occurs this year, with the possible values of EBIT and their associated probabilities as shown below: State Pessimistic Optimistic Probability of State .25 .75 Expect EBIT in State $10.8 million $50.8 million The firm is considering switching to a 20-percent debt capital structure, and has determined that they would have to pay a 9 percent yield on perpetual debt in either event. What will be the level of expected EPS if they switch to the proposed capital structure? (Round your intermediate calculations and final answer to 2 decimal places, except calculation of number of shares which should be rounded to nearest whole number.)

Shawn Bixby borrowed $21,000 on a 120-day, 12% note. After 70 days, Shawn paid $2,400 on the note. On day 100, Shawn paid an additional $4,400. Use ordinary interest. a. Determine the total interest use the U.S. Rule. (Do not round intermediate calculations. Round your answer to the nearest cent.) Total interest $ b. Determine the ending balance due use the U.S. Rule. (Do not round intermediate calculations. Round your answer to the nearest cent.) Ending balance due $

Question 6

A bank has an average asset duration of 4 years and an average liability duration of 1.5 years. This bank has total assets of $500 million and total liabilities of $450 million. Currently, market interest rates are 10 percent. If interest rates rise by 1 percent (to 11 percent), what is this bank's change in net worth?

Suppose the​ risk-free interest rate is 5 %​, and the stock market will return either plus 28 % or negative 17 % each​ year, with each outcome equally likely. Compare the following two investment​ strategies: (1) invest for one year in the​ risk-free investment, and one year in the​ market, or​ (2) invest for both years in the market.

a. Which strategy has the highest expected final​ payoff? (Two possible outcomes)

b. Which strategy has the highest standard deviation for the final​ payoff?

c. Does holding stocks for a longer period decrease your​ risk?