Please answer the following questions in your initial post:

• What is the importance of small business in the United States?
• How did the Telfers finance their start-up?
• Why is it difficult for budding entrepreneurs to secure bank financing or venture capital?
• What is an intrapreneur? How does it differ from an entrepreneur?
• How does the notion of taking an existing idea and making it better relate to the successful launch of Pillow Pets?
• Have you or a friend ever had an idea for a product or a service that would make it better? What was it? What is stopping you from implementing it?

Woodbridge crop. is assessing the viability of a new condo project. It would need to spend $2 million to purchases the land today and then $2 million per year for each of the next two years to build the condo development which would have 20 units.

Woodbridge will conduct an auction at the end of the year one to sell the first 10 units which are expected to sell for an average price of $350,000 each.

At the end of year two the remaining 10 units would be auctioned and are expected to sell for an average price of $375,000 each. There is no residual value to the developer.

If the appropriate discount rate is 15% - what is the NPV of this project? Assume that all cost and revenue items occur at the end of the year( except of course the initial land acquisition.) What is the NPV if the appropriate discount rate is 30%?

You bought a car three years ago for $20,000 and financed $16,000 at 6 percent APR for 60 months. You are now thinking about trading in your vehicle for a new one and would like to know how much you still owe on the loan. Assuming that you have made 36 payments so far, what is the balance remaining on your loan?

Below is a table of expected cash flows for a potential project. Select all of the capital budgeting rules that tell you to accept the project

Doak Corp. is evaluating a project with the following cash flows: Year Cash Flow 0 –$ 15,300 1 6,400 2 7,600 3 7,200 4 6,000 5 – 3,400 The company uses an interest rate of 9 percent on all of its projects. Calculate the MIRR of the project using all three methods.

Answer must be in three full paragraphs with one resource given

The age-old saying for investing is “buy low and sell high,” but this is easier said than done. Investors who are scared of falling prices sell their investments, which in turn lowers the price and then creates a snowball effect. Consider a situation where all of your investments are exposed to the stock market and prices are starting to fall. You do not need the money until retirement, which is in 20 years. How would you react to this situation and why? If you decide to sell, what would you purchase instead

3. Assuming the following yields: Week 1: 3.84% Week 2: 3.51% Week 3: 3.95% (1) Compute the absolute yield change and percentage yield change from week 1 to week 2. (1.5 points) (2) Compute the absolute yield change and percentage yield change from week 2 to week 3. (1.5 points)

Blossom, Inc., a resort management company, is refurbishing one of its hotels at a cost of $8,554,779. Management expects that this will lead to additional cash flows of $1,970,000 for the next six years. What is the IRR of this project? If the appropriate cost of capital is 12 percent, should Blossom go ahead with this project? (Round answer to 2 decimal places, e.g. 5.25%.)

You are a financial analyst for Loch Motor Company and have been asked to determine the impact of alternative depreciation methods. For your analysis, you have been asked to compare methods based on a machine that cost $206,000. The estimated useful life is 12 years, and the estimated residual value is $46,160. The machine has an estimated useful life in productive output of 222,000 units. Actual output was 31,000 in year 1 and 27,000 in year 2.

Required:

1. For years 1 and 2 only, prepare separate depreciation schedules assuming: (Do not round intermediate calculations and round your final answers to the nearest dollar amount.)

a. Straight-line method.

b. Units-of-production method.

c. Double-declining-balance method.

Tim Smith is shopping for a used luxury car. He has found one priced as $40,000. The dealer has told Tim that if he can come up with a down payment of ​$7,500​, the dealer will finance the balance of the price at a 55​% annual rate over 5years ​(60 ​months).  ​(Hint: Use four decimal places for the monthly interest rate in all your​ calculations.) a.  Assuming that Tim accepts the​ dealer's offer, what will his monthly​ (end-of-month) payment amount​ be? b.  Use a financial calculator or spreadsheet to help you figure out what​ Tim's monthly payment would be if the dealer were willing to finance the balance of the car price at an annual rate of 3.3​%?

Hagar Industrial Systems Company (HISC) is trying to decide between two different conveyor belt systems. System A costs $270,000, has a 4-year life, and requires $77,000 in pretax annual operating costs. System B costs $350,000, has a 6-year life, and requires $71,000 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 21 percent and the discount rate is 8 percent. Calculate the EAC for both conveyor belt systems. (A negative answer should be indicated by a minus sign. Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Consider the following.

a. Calculate the leverage-adjusted duration gap of an FI that has assets of $2.4 million invested in 25-year, 9 percent semiannual coupon Treasury bonds selling at par and whose duration has been estimated at 10.08 years. It has liabilities of $1,040,000 financed through a two-year, 6.50 percent semiannual coupon note selling at par.

b. What is the impact on equity values if all interest rates fall 20 basis points—that is, ΔR/(1 + R/2) = –0.0020?

From the news, you identified a trend that Mexican nominal interest rates have been substantially higher than U.S. nominal interest rates in recent years.

1. According to Fisher Effect, what do you expect inflation gap between two country’s inflation rate?

2. What does this imply about the future changes to Mexican peso vs. USD exchange rate and why? (explain with parities you have learned)

3. Assume three months later, the annual interest rate is 10% in Mexico and 1.5% in the US, the spot rate is $0.05 per peso and the one year forward rate is $0.048 per peso. Is interest rate parity holds? If not, can your company take advantage of this arbitrage opportunity? How much is your profit if you have $1million?

4. Since Mexican nominal interest rate is often substantially higher than U.S. interest rate. What is the future spot rate of peso vs. USD when you use peso/USD forward rate to forecast future spot rate? Based on which parity do you make your predication here?

5. What would you expect the gap of interest rate differentials affects the degree of expect changes on peso vs. USD exchange rate?

6. What other forecast methods you can use to forecast peso exchange rate in the future? Please explain each forecast method’s advantages and disadvantages respectively.

1. Explain various discounted cash flow (DCF) methods in capital budgeting process!
2. Which method that are used in your company to make the investment decision? Give a real example!
3. Discuss the challenges the DCF methods (for example, NPV) usage!