Your sales and cost accounting team have come up with upper and lower bound estimates for sales, prices and costs as shown in the table below. You are considering a project that requires an initial investment of $10,000. t is depreciable over four years using the straight line depreciation. The discount rate is 10%. Your tax bracket is 34% and you receive a tax credit for negative earnings in the year in which the loss occurs.

a)What is the base NPV for the project

b)What is the worst case NPV for the project

c)What is the best case NPV for the project

d)What is the best case accounting break-even?

30-year maturity bond has a 5.3% coupon rate, paid annually. It sells today for $884.92. A 20-year maturity bond has a 4.8% coupon rate, also paid annually. It sells today for $890.5. A bond market analyst forecasts that in five years, 25-year maturity bonds will sell at yields to maturity of 6.3% and 15-year maturity bonds will sell at yields of 5.8%. Because the yield curve is upward sloping, the analyst believes that coupons will be invested in short-term securities at a rate of 4.3%.

a. Calculate the (annualized) expected rate of return of the 30-year bond over the 5-year period. (Round your answer to 2 decimal places.)

b. What is the (annualized) expected return of the 20-year bond? (Round your answer to 2 decimal places.)

• What three items do you believe would be most useful in predicting loan acceptance or rejection?
• What additional data do you think could be solicited either internally or externally that would help you predict loan acceptance or rejection?
• If you were in a position to accept or deny a loan application, how might you look differently at this data? Would you be more lenient or stringent?

 ​(Bond valuation​ relationships) The

1616​-year,

​$1 comma 0001,000

par value bonds of Waco Industries pay

77

percent interest annually. The market price of the bond is

​$935935​,

and the​ market's required yield to maturity on a​ comparable-risk bond is

66

percent.

a.  Compute the​ bond's yield to maturity.

b.  Determine the value of the bond to you given the​ market's required yield to maturity on a​ comparable-risk bond.

c.  Should you purchase the​ bond?

a.  What is your yield to maturity on the Waco bonds given the current market price of the​ bonds?

nothing​%

​ (Round to two decimal​ places.)

A new electronic process monitor costs $690,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth $101,000 in five years. The new monitor would save $460,000 per year before taxes and operating costs. If we require a 12.5% return, what is the NPV of the purchase?Assume a tax rate of 25%

Bullworks Systems is trying to decide between two conveyor belt systems. System A costs $450,000, has a three year life and requires $15000 in pretax annual operating costs. System B costs $500,000, has a five year life and requires $80,000 in pretax annual operating costs. Both systems are to be depreciated straight line to zero over their lives and will have zero salvage value. If the pretax rate is 34 percent and the discount rate is 20% which project should Bullworks choose?

First what are the social responsibilities of a business ( Or Corporate Social Responsibilities to various Stakeholders)?  Do theses social responsibilities conflict with the responsibility to maximize the wealth of the owners of the business ( i.e shareholders) or can the coexist?  Why or Why not? Why is this topic important to you? ( It should be if you think about it).

Please help with all parts
   

 ​(Bond valuation)  ​Fingen's 14​-year, ​$1 comma 000 par value bonds pay 12 percent interest annually. The market price of the bonds is ​$890 and the​ market's required yield to maturity on a​ comparable-risk bond is 15 percent. a.  Compute the​ bond's yield to maturity. b.  Determine the value of the bond to​ you, given your required rate of return. c.  Should you purchase the​ bond? a.  What is your yield to maturity on the Fingen bonds given the market price of the​ bonds? nothing​% ​(Round to two decimal​ places.)

 ​(Bond valuation)  ​Pybus, Inc. is considering issuing bonds that will mature in 15 years with an annual coupon rate of 8 percent. Their par value will be ​$1 comma 000​, and the interest will be paid semiannually. Pybus is hoping to get a AA rating on its bonds​ and, if it​ does, the yield to maturity on similar AA bonds is 11.5 percent. ​ However, Pybus is not sure whether the new bonds will receive a AA rating. If they receive an A​ rating, the yield to maturity on similar A bonds is 12.5 percent. What will be the price of these bonds if they receive either an A or a AA​ rating? a. The price of the Pybus bonds if they receive a AA rating will be ​$ nothing. ​ (Round to the nearest​ cent.)

Use the asset market approach to analyse the recent appreciation of the US Dollar. What is your forecast of the future value of the USDollar?

It might be surprising to find out that the market for fixed income securities is significantly larger than the more well-known market for equity securities. What types of investors are usually more interested in fixed income types of investments and why? It has often been suggested by so-called experts that individual fixed income investors should invest through bond mutual funds. Can you think of reasons why this suggestion makes sense or doesn't make sense?

Take a look at this financial plan for an EcoFriendly cleaning product. Do these financial assumptions make sense? If not, what financial assumptions would you make?

Financial Plan. According to Gallup News website 39% of people are buying green products in east coast of America. We are assuming that 39% in Boston are interested buying green products. The total population in Boston is 673,184, which means that 262,541 are buying green products. We want to reach 1% of the customers within 6 months. We are assuming that we can sell 1000 units in the first month and we will sell 15,249 units by year one as a short term objective. The total start cost is $56,500 and the total funds are $81,000 ending with $24,500 cash. We get $60,000 loan from one member's father and we contribute $7,000 each. Total fixed cost in the first year is $9,550 each month, and $17,470 each month in the second year. We are assuming that we will sell 1000 units in the first month because there are some cleaning companies in Boston that use green products only, and they will try our products. The total revenue in the first month is $4255 with $1000 product cost. By the end of the first month we end up with a negative net income of ($-6,759). We start making profit when the sales unit increases in month six. By the end of the year we are assuming that we will sell 15,249 units with $171,963 revenue, and total cost of good sold of $40,199. Our net income will be $11,596 in first year. Second year, we increase marketing budget and hire more employees to reach $331,614 total revenue. By the end of year 2 our net income will be $39,063 and $72,322 on year 3. We maintain a positive cash flow to service during the first six months where our net income is negative. After six month our cash flow increases because we assuming that we will have a positive net income by six month. There are money companies in the market selling the same products we have and that means that the demand for green products is increasing. Our business makes sense because there are customers buying cleaning products and we are adding the value to customers by providing green cleaning products at a competitive price.

Consider a $329,000; 4.2%; 30 year mortgage. (monthly payment and monthly compounding).

a. If a borrower submits an extra $10,000 towards principal along with the 36th payment, and if all other payments are made according to schedule, what's the projected balance at the end of the 5th year?

b. (Ignoring 5a) If you just turned 23 years old on the day this 30-year mortgage was originated, but would like to have the entire mortgage paid off by the time you are 50, what payment should you make each month?

**please include solutions

2. Muncy, Inc., is looking to add a new machine at a cost of $4,133,250. The company expects this equipment will lead to cash flows of $815,322, $863,275, $937,250, $1,017,112, $1,212,960, and $1,225,000 over the next six years. If the appropriate discount rate is 15 percent, what is the NPV of this investment? Round to two decimal places.

3.

An investment of $83 generates after-tax cash flows of $38.00 in Year 1, $66.00 in Year 2, and $127.00 in Year 3. The required rate of return is 20 percent. The net present value is

Round to two decimal places.

4. McKenna Sports Authority is getting ready to produce a new line of gold clubs by investing $1.85 million. The investment will result in additional cash flows of $525,000, $817,500, and $1,245,000 over the next three years. What is the payback period for this project? Round to four decimal places.

5.

Monroe, Inc., is evaluating a project. The company uses a 13.8 percent discount rate for this project. Cost and cash flows are shown in the table. What is the NPV of the project?

Year Project

0 ($11,368,000)

1 $ 2,157,589

2 $ 3,787,552

3 $  3,200,650

4 $ 4,115,899

5 $ 4,556,424

Round to two decimal places.