"Bob got a fully amortizing 30 year fixed rate mortgage with monthly payments for $1,000,000 at an annual interest rate of 4.5%, compounded monthly. If Bob made the required monthly payment every month, how many dollars in interest will Bob pay in his 125th monthly payment?"

Blue Line machine shop is considering a four-year project to improve its production efficiency. Buying a new machine press for $570,000 is estimated to result in $240,000 in annual pretax cost savings. The press falls in the MACRS five-year class and it will have a salvage value at the end of the project of $96,000. The press also requires an initial investment in spare parts inventory of $30,000, along with an additional $3,500 in inventory for each succeeding year of the project. The shop tax rate is 30 percent and the project's required return is 8 percent.

A/ Calculate the NPV of this project

B/ Should the company buy and install the machine press?

How can a performance integrated budget be used to counter the archaic practice of across-the-board budget cuts?

A company is considering producing long telephoto zoom lens, iLongLens, attachment for the iPhone 5. The initial investment for this project will be $3 million. This amount is for depreciable equipment, which will be depreciated over 5 years using the straight-line method to zero book value. The iLongLens is expected to generate Earnings before Depreciation and Taxes of $1.5 million per year for 6 years. At the end of the sixth year the equipment will be scrapped for $300,000. The company’s tax rate is 40% and the appropriate discount rate for this project is 15%. a) List all 7 after-tax cash flows for this project (0 is the initial investment).

b) Compute the NPV.

c) Compute the IRR and payback.

6. Use the table below, based on data from students enrolled in BMGT 230/230B this semester, to answer/complete parts a. through e. (the cell values are frequencies):

a. Determine the probability a student selected at random is Conservative (meaning either Very Conservative or Somewhat Conservative).
b. Determine the probability a Male student selected at random is Conservative (meaning either Very Conservative or Somewhat Conservative).
c. Determine the probability a Female student selected at random is Conservative (meaning either Very Conservative or Somewhat Conservative).
d. Given your answers to Parts a, b, and c, are the two dimensions, Political Attitude and Sex, statistically independent?
e. Given your answer to Part d, are the Political Attitudes of Males and Females in the course generally Similar or Different?

Problem 12-07
Forecasted Statements and Ratios

Upton Computers makes bulk purchases of small computers, stocks them in conveniently located warehouses, ships them to its chain of retail stores, and has a staff to advise customers and help them set up their new computers. Upton's balance sheet as of December 31, 2016, is shown here (millions of dollars):

Sales for 2016 were $275 million and net income for the year was $8.25 million, so the firm's profit margin was 3.0%. Upton paid dividends of $3.3 million to common stockholders, so its payout ratio was 40%. Its tax rate was 40%, and it operated at full capacity. Assume that all assets/sales ratios, (spontaneous liabilities)/sales ratios, the profit margin, and the payout ratio remain constant in 2017. Do not round intermediate calculations.

1. If sales are projected to increase by $90 million, or 32.73%, during 2017, use the AFN equation to determine Upton's projected external capital requirements. Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
   $  million
   
2. Using the AFN equation, determine Upton's self-supporting growth rate. That is, what is the maximum growth rate the firm can achieve without having to employ nonspontaneous external funds? Round your answer to two decimal places.
   %
   
3. Use the forecasted financial statement method to forecast Upton's balance sheet for December 31, 2017. Assume that all additional external capital is raised as a line of credit at the end of the year and is reflected (because the debt is added at the end of the year, there will be no additional interest expense due to the new debt).
   Assume Upton's profit margin and dividend payout ratio will be the same in 2017 as they were in 2016. What is the amount of the line of credit reported on the 2017 forecasted balance sheets? (Hint: You don't need to forecast the income statements because the line of credit is taken out on last day of the year and you are given the projected sales, profit margin, and dividend payout ratio; these figures allow you to calculate the 2017 addition to retained earnings for the balance sheet without actually constructing a full income statement.) Round your answers to the nearest cent.

   Upton Computers Pro Forma Balance Sheet December 31, 2017 (Millions of Dollars)
   Cash	$
   Receivables	$
   Inventories	$
   Total current assets	$
   Net fixed assets	$
   Total assets	$
   Accounts payable	$
   Notes payable	$
   Line of credit	$
   Accruals	$
   Total current liabilities	$
   Mortgage loan	$
   Common stock	$
   Retained earnings	$
   Total liabilities and equity	$

Assume that the Treasury bond futures price is 108-09. Which of the following four bonds is cheapest to deliver (CTD)?

Your division is considering two projects with the following cash flows (in millions):

1. What are the projects' NPVs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign.
   Project A    $   million
   Project B    $   million

   What are the projects' NPVs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign.
   Project A    $   million
   Project B    $   million

   What are the projects' NPVs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations. Enter your answer in millions. For example, an answer of $10,550,000 should be entered as 10.55. Negative value should be indicated by a minus sign.
   Project A    $   million
   Project B    $   million

2. What are the projects' IRRs assuming the WACC is 5%? Round your answer to two decimal places. Do not round your intermediate calculations.
   Project A   %
   Project B   %

   What are the projects' IRRs assuming the WACC is 10%? Round your answer to two decimal places. Do not round your intermediate calculations.
   Project A   %
   Project B   %

   What are the projects' IRRs assuming the WACC is 15%? Round your answer to two decimal places. Do not round your intermediate calculations.
   Project A   %
   Project B   %

3. If the WACC was 5% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
   -Select-Project AProject - BNeither or A, nor B

   If the WACC was 10% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
   -Select-Project AProject - BNeither or A, nor B

   If the WACC was 15% and A and B were mutually exclusive, which project would you choose? (Hint: The crossover rate is 90.37%.)
   -Select-Project AProject - BNeither or A, nor B

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 3.0%. The probability distribution of the risky funds is as follows:

The correlation between the fund returns is 0.18.

Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 3.0%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 12% 41% Bond fund (B) 5% 30% The correlation between the fund returns is 0.0667. What is the expected return and standard deviation for the minimum-variance portfolio of the two risky funds?

search current news (less than 6 months old) and find an article about a company reporting key financial news (e.g., landing a large contract, reporting unusual profits or losses, expressing concern for future profitability, etc.). Briefly review the news item and include the proper APA citation for that article. Why was your chosen financial event newsworthy, i.e., why do you believe this news was important? Also, why did this particular article catch your attention? Please do not duplicate articles; before you review an article, be sure no one else has already posted a review on that article. Your instructor is likely to have questions/comments on your original post so be sure to be prepared for those potential questions.

You have just purchased a new home and have taken out a mortgage loan for $300,000 at an interest rate of 4.00% and a maturity of 30 years. You will make 360 equal monthly payments. What is the amount of your monthly payment? Please fill in the amortization schedule below for the first two months (month1 and 2) of the 360 months that you will be paying on the mortgage.

Hint: PVA = Payment [1-(1+r)^-N / r]

Please fill in the amortization schedule below for the first two months of the 360 months that you will be paying on the mortgage.

First two Months of Amortization table:

                                                                        Repayment                   Remaining

Month              Payment           Interest             of Principal                  Principal Balance

1

2

Toyota's Pass-Through.  Assume that the export price of a Toyota Corolla from​ Osaka, Japan, is ¥2,150,000. The exchange rate is ¥87.58​/$. The forecast rate of inflation in the United States is 2.2​% per year and in Japan it is 0.0​% per year. Use this data to answer the following questions on exchange rate​ pass-through.

a. What was the export price for the Corolla at the beginning of the year expressed in U.S.​ dollars?

b. Assuming purchasing power parity​ holds, what should be the exchange rate at the end of the​ year?

c. Assuming​ 100% exchange rate​ pass-through, what will be the dollar price of a Corolla at the end of the​ year?

d. Assuming​ 75% exchange rate​ pass-through, what will be the dollar price of a Corolla at the end of the​ year?