HSAs (Health saving Account) and FSAs (Flexible spending Account ) which is better? and why ?

discount rate is 10%

1.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3 and you will receive additional $1000 at the end of the 12 years.,What is the PV at time zero? what is the FV at time 12?

2.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=3.What is the PV at time zero? what is the FV at time 12?

3.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at t=5.What is the PV at time zero? what is the FV at time 10

4.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 .What is the PV at time zero? What is the FV at time 10?

5.A stream of cash flows that pays $100 every year for 10 year. The first cash flow is received at t=1 and you will receive additional $1000 at the end of the 10 years.,What is the PV at time zero? what is the FV at time 12?

An investment has an initial cash outflow of $210,000 for fixed assets that will be depreciated straight-line to zero over the 4-year life of the project. The sales price is $19.95 a unit, annual fixed costs are $237,000, the variable costs per unit are $8.87, and the tax rate is 23 percent. At what annual sales quantity will the investment break even on an accounting basis?

Select one:

a. 29,889 units

b. 24,092 units

c. 32,088 units

d. 30,135 units

e. 26,129 units

Scenario Modeler’s prospective stock has a 15% chance of producing a 65% return, a 25% chance of producing a 22% return, a 40% chance of producing a 9% return, and a 20% chance of producing a –24% return. What is the firm’s coefficient of variation of return?

Deep Value, Inc.’s annual stock returns for the last ten years are: –5%, 15%, 11%, 18%, –8%, 9%, 16%, –3%, 3%, and 35%. The Market Index’s annual returns for the same ten years are: 10%, 22%, 9%, 13%, –7%, 8%, 15%, –13%, –12%, and 18%. What is Deep Value’s beta coefficient?  

An investment of $20,000 for a new condenser is being considered. Estimated salvage value of the condenser is $5,000 at the end of an estimated life of 6 years. Annual income each year for the 6 years is $8,500. Annual operat- ing expenses are $2,300. Assume money is worth 15% compounded annually. Determine the internal rate of return and whether or not the condenser should be purchased.

Fitzgerald Industries has a new project available that requires an initial investment of $5.3 million. The project will provide unlevered cash flows of $845,000 per year for the next 20 years. The company will finance the project with a debt-value ratio of .25. The company’s bonds have a YTM of 6.1 percent. The companies with operations comparable to this project have unlevered betas of 1.20, 1.13, 1.35, and 1.30. The risk-free rate is 3.5 percent and the market risk premium is 6.7 percent. The tax rate is 25 percent. What is the NPV of this project? (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places, e.g., 1,234,567.89)

Financial Planning and Agency Conflicts:

Recommend two desired characteristics of a board of directors. Provide support for your response, citing the ways in which these characteristics usually lead to effective corporate governance.

define zero-base budgeting and define target-base budgeting. Compare and contrast the two

JS company is considering an investment that requires an outlay of $100,000 today. Cash inflow from the investment are expected to be $10,000 for year 1-3, and $30,000 for year 4, 5, 6, 7, and 8. You require a 20% rate of return on this type of investment. Answer the following questions:

1. First draw the timeline and specify the cash outflow and inflow for each period.
2. Calculate the net present value.
3. Calculate the internal rate of return of this investment.
4. Calculate the payback periods
5. Shall the investment be undertaken?

Please report the answer in the following multiple choices.

Mortgage Analysis

You are planning to purchase a house that costs $4 80,000. You plan to put 20% down and borrow the remainder. Based on your credit score, you believe that you will pay 3.25% on a 30-year mortgage.

1. Use function “PMT” to calculate your mortgage payment.
2. Use function “PV” to calculate the loan amount given a payment of $1550 per month. What is the most that you can borrow?
3. Use function “RATE” to calculate the interest rate given a payment of $1550 and a loan amount of $384,000.
4. For each scenario, calculate the total interest that you will have paid once the mortgage is paid off. (There is not a function for this, enter the formula into the cell.)
5. For each scenario, calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest.)
6. Assume that you plan to pay an extra $300 per month on top of your mortgage payment, calculate how long it will take you to pay off the loan given the higher payment. (Use the data from #1). Calculate how much interest you will pay in total? Compare this to the value that you calculated for #1.

You want to determine whether you should only 10% down on your house. Because you are only putting 10% down, lenders require that you purchase private mortgage insurance (PMI). Assume that PMI is 1% of the mortgage amount. Assume that you will pay PMI for 8 years in total (the assumption is that you will have 20% equity at that time so PMI will no longer be needed).

7. Calculate your total monthly payment (mortgage payment plus PMI).
8. Calculate the total cost of financing your home purchase (interest plus PMI). (remember that you only pay PMI for 8 years)
9. Calculate the total cost of the home purchase. (Down payment plus principle (loan amount) plus interest plus PMI.)
10. Compare this to the costs associated with a 20% down payment (use data from #1).

Caspian Sea Drinks is considering the purchase of a plum juicer – the PJX5. There is no planned increase in production. The PJX5 will reduce costs by squeezing more juice from each plum and doing so in a more efficient manner. Mr. Bensen gave Derek the following information. What is the NPV of the PJX5?

a. The PJX5 will cost $1.58 million fully installed and has a 10 year life. It will be depreciated to a book value of $220,628.00 and sold for that amount in year 10.

b. The Engineering Department spent $14,803.00 researching the various juicers.

c. Portions of the plant floor have been redesigned to accommodate the juicer at a cost of $20,051.00.

d. The PJX5 will reduce operating costs by $307,163.00 per year.

e. CSD’s marginal tax rate is 36.00%.

f. CSD is 58.00% equity-financed.

g. CSD’s 19.00-year, semi-annual pay, 5.41% coupon bond sells for $979.00.

h. CSD’s stock currently has a market value of $21.91 and Mr. Bensen believes the market estimates that dividends will grow at 2.33% forever. Next year’s dividend is projected to be $1.68.

AFN EQUATION

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $4 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 5%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.