Five years ago, Brian had invested $16,850 in a growth fund. The investment is worth $24,000 today. If the interest was compounded annually, what is the annual rate of return earned on the investment?

Greenpoint Corporation is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 25 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Suppose the appropriate discount rate is 12 percent. Determine the net working capital spending for Year 4 then calculate the NPV of the project. What is the project NPV? Year 0 Year 1 Year 2 Year 3 Year 4 Investment $118,000 Sales revenue $75,000 $75,800 $77,000 $78,500 Operating cost 18,000 18,600 19,600 21,000 Depreciation 29,500 29,500 29,500 29,500 Net working capital spending 10,000 4,000 2,000 1,000 ? $30,532.66 $29,744.78 $28,568.41 $27,520.33 $26,244.80

Franklin Company is analyzing two machines to determine which one it should purchase. Whichever machine is purchased will be replaced at the end of its useful life. The company requires a 12 percent rate of return and uses straight-line depreciation to a zero book value over the life of the machine. Machine A has a cost of $372,000, annual operating costs of $31,600, and a 4-year life. Machine B costs $268,000, has annual operating costs of $39,200, and a 3-year life. The firm currently pays no taxes. Which machine should be purchased and why? Machine A; because it will save the company about $2,875 a year Machine A; because it will save the company about $4,130 a year Machine B; because it will save the company about $3,294 a year Machine B; because it will save the company about $2,795 a year Machine B; because it will save the company about $2,358 a year

Fluor Enterprise is considering a 3-year project with an initial cost of $336,000. The project will not directly produce any sales but will reduce operating costs by $150,000 a year. The equipment is classified as MACRS 7-year property. The MACRS table values are .1429, .2449, .1749, .1249, .0893, .0892, .0893, and .0446 for Years 1 to 8, respectively. At the end of the project, the equipment will be sold for an estimated $151,000. The tax rate is 25 percent and the required return is 12 percent. An extra $22,000 of inventory will be required for the life of the project. What is the total cash flow for Year 3? $307,512.63 $299,174.80 $290,413.64 $313,416.76 $382,266.33

A project will produce an operating cash flow of $445,000 a year for four years. The initial cash outlay for equipment will be $1,195,000. The net aftertax salvage value of $61,000 will be received at the end of the project. The project requires 87,000 of net working capital up front that will be fully recovered. What is the net present value of the project if the required rate of return is 12 percent? $146,800.23 $181,219.28 $154,036.37 $172,811.69 $163,677.13

In 2018, CJH Excavating reported the following information. What is the firm's free cash flow? Dividends are paid out at 31% of earnings for the year. The firm has 50,000 common shares outstanding. The firm's tax rate is 32%.

Treasury Securities.

Consider a 4-year semiannual TIPS with a coupon rate of 6%. Suppose that an investor purchases $1,000,000 of par value (initial principal) of this issue today, and that the annual inflation rate is 2.8% for the 1st six-month period and 3.2% for the 2nd six month period. What is the dollar coupon interest that will be paid in cash at the end of the 2nd six-month period?

Suppose the quote on a bank discount for a treasury bill with 90 days to maturity and a face value of $1,000 is 5% what is the price?

I don't really understand how to estimate revenue. I have been given revenues from previous years and I am being asked to estimate the revenue for FY2020 and explain my rationale. Please help thank you! Please show all relevant work so I can understand how you got to the answer. Thank you!

PS: if possible please use regression including a graph.

you are planning to borrow $10,000 to buy a new car. the loan is being made to you ag 8.0% annual percentage rate. you will make monthly payment for four years. how mi h of the third monthly payment will go to the paymebt of principal

Price Volatility I: Given a $100 par value with a coupon rate of 8% paying semiannually, a term to maturity of 6 years; and an initial yield of 7%.

I.) What is the approximate duration using the shortcut formula by changing yields by 10 basis points?

ii.) What is the approximate convexity using the shortcut formula by changing yields by 10 basis points?

A particular investment offers the following cash flows: none for 3 years, then $1500 per year for

5 years, then $2000 per year for 10 years. The required return is 6%.

a. What is the value of the investment today?

b. What is the value of the investment in 5 years?

c. What is the value of the investment in 8 years?

An investor just purchased a 5-year $1,000 par value bond. The coupon rate on this bond is 10% annually, with interest paid every year. If the investor expects to earn 12% simple rate of return, how much the investor should pay for it?

You purchased a house five years ago and borrowed $400,000 .
The loan you used has 300 more monthly payments of $1,686 each, starting next month, to pay off the loan.
You can take out a new loan for $355,625 at 2.00% APR compounded monthly , with 300 more payments, starting next month to pay off this new loan.
If your investments earn 2.75% APR compounded monthly , how much will you save in present value terms by using the new loan to pay-off the original loan?

There may be rounding in this case, so pick the closest answer.

bill clinton reportedly was paid an advance of$ 10.0million to write his book My LifeMy Life. Suppose the book took three years to write. In the time he spent​ writing, Clinton could have been paid to make speeches. Given his​ popularity, assume that he could earn$ 8.4million a year​ (paid at the end of the​ year) speaking instead of writing. Assume his cost of capital is 9.8% per year.                           

a. What is the NPV of agreeing to write the book​ (ignoring any royalty​ payments)?

b. Assume​ that, once the book is​ finished, it is expected to generate royalties of $ 5.3

million in the first year​ (paid at the end of the​ year) and these royalties are expected to decrease at a rate of 30%

per year in perpetuity. What is the NPV of the book with the royalty​ payments?

a. What is the NPV of agreeing to write the book​ (ignoring any royalty​ payments)?

The NPV of agreeing to write the book is −10.963

I was able to get an answer for part a but can solve part b please help

Consider the case of Alexander Industries:

Alexander Industries is considering a project that requires an investment in new equipment of $3,360,000. Under the new tax law, the equipment is eligible for 100% bonus depreciation at t = 0 so the equipment will be fully depreciated at the time of purchase. Alexander estimates that its accounts receivable and inventories need to increase by $640,000 to support the new project, some of which is financed by a $256,000 increase in spontaneous liabilities (accounts payable and accruals). The company's tax rate is 25%.

The after-tax cost of Alexander’s new equipment is_____________

Alexander’s initial net investment outlay is_______________

Suppose Alexander’s new equipment is expected to sell for $200,000 at the end of its four-year useful life, and at the same time, the firm expects to recover all of its net operating working capital (NOWC) investment. Remember, that under the new tax law, this equipment was fully depreciated at t = 0. If the firm’s tax rate is 25%, what is the project’s total termination cash flow?