Bullock Gold Mining Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine in South Dakota. Dan Dority, the company’s geologist, has just finished his analysis of the mine site. He has estimated that the mine would be productive for eight years, after which the gold would be completely mined. Dan has taken an estimate of the gold deposits to Alma Garrett, the company’s financial officer. Alma has been asked by Seth to perform an analysis of the new mine and present her recommendation on whether the company should open the new mine. Year Cash Flow 0 −$625,000,000 1 70,000,000 2 129,000,000 3 183,000,000 4 235,000,000 5 210,000,000 6 164,000,000 7 108,000,000 8 86,000,000 9 − 90,000,000 Alma has used the estimates provided by Dan to determine the revenues that could be expected from the mine. She also has projected the expense of opening the mine and the annual operating expenses. If the company opens the mine, it will cost $625 million today, and it will have a cash outflow of $90 million nine years from today in costs associated with closing the mine and reclaiming the area surrounding it. The expected cash flows each year from the mine are shown in the nearby table. Bullock Gold Mining has a 12 percent required return on all of its gold mines. QUESTIONS Construct a spreadsheet to calculate the payback period, internal rate of return, modified internal rate of return, and net present value of the proposed mine. Based on your analysis, should the company open the mine? Bonus question: Most spreadsheets do not have a built-in formula to calculate the payback period. Write a VBA script that calculates the payback period for a project.

Calculate the Dollar Price quotes of the Treasury Securities in the adjacent table

Meg's pension plan is an annuity with a guaranteed return of 4% per year (compounded quarterly). She would like to retire with a pension of $30,000 per quarter for 25 years. If she works 41 years before retiring, how much money must she and her employer deposit each quarter? (Round your answer to the nearest cent.)

Determine the accumulated amount of an annuity consisting of 10 payments of P20,000 each.
The payment is made at the beginning of each month. Money is worth 10% compounded
semi-annually.

*CASH FLOW Diagram Needed

Mountain Frost is considering a new project with an initial cost of $270,000. The equipment will be depreciated on a straight-line basis to a zero book value over the four-year life of the project. The projected net income for each year is $21,300, $22,200, $24,600, and $18,200, respectively. What is the average accounting return?

A) 14.65% B) 15.98% C) 7.99% D) 11.99% E) 17.12%

1. In a modified gross lease…

2. Net operating income (NOI) represents...

3. Effective Gross Income is determined by Potential Gross Income after adjusting for ...

Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $6 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 4%, and the forecasted retention ratio is 35%. Use the AFN equation to forecast Carlsbad's additional funds needed 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.

$

Now assume the company's assets totaled $4 million at the end of 2016. Is the company's "capital intensity" the same or different comparing to initial situation?
-Select-DifferentThe sameItem 2

You invest 27,000 in a corporate bond selling for $900 per $1000. Over the coming year, the bond will pay interest of $75 per $1000 of par value. The price of the bond at year’s end will depend of the level of interest rate prevailing at that time. You construct the following scenario analysis:

Your alternative investment is a T-bill that yields a certain rate of 5%. Calculate the HPR for each scenario, the expected rate of return, and the risk premium on your investment.   What is the expected year-end dollar value of your investment? (9 Points)

The treasurer of Amaro Canned Fruits, Inc., has projected the cash flows of projects A, B, and C as follows:

Suppose the relevant discount rate is 8 percent per year.
  
a. Compute the profitability index for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

b. Compute the NPV for each of the three projects. (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 32.16.)

c. Suppose these three projects are independent. Which project(s) should Amaro accept based on the profitability index rule?
  

  
d. Suppose these three projects are mutually exclusive. Which project(s) should Amaro accept based on the profitability index rule?
  

  
e. Suppose Amaro’s budget for these projects is $565,000. The projects are not divisible. Which project(s) should Amaro accept?
  

The next dividend for ABC Corp. is expected to be $ 1.24. It will rise to $ 2.47 the next year and grow at a constant 6.2 % from then on. The required return is 12.4 %. What is the current price of the​ stock?

You find the following Treasury bond quotes. To calculate the number of years until maturity, assume that it is currently May 2016. The bonds have a par value of $1,000. Rate Maturity Mo/Yr Bid Asked Chg Ask Yld ?? May 27 103.4625 103.5353 +.3028 6.019 6.302 May 32 104.4965 104.6422 +.4305 ?? 6.168 May 42 ?? ?? +.5418 4.051 In the above table, find the Treasury bond that matures in May 2032. What is your yield to maturity if you buy this bond? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Yield to maturity