Assume that the net cash flow of a potential $7.25 million investment is $1.1 million in year 1, then $1.25 million in year 2, $1.4 million in year 3, $2.2 million in year 4 and year 5, and then sold at the end of year 5 for $850,000. Further assume that in each year cash flows (excluding initial investment) could be as much as $400,000 less than forecast, or $400,000 more than forecast. Suppose you assess the “low net cash flow” probability at 25 percent likely, the base (original) scenario at 50 percent likely, and the “high net cash flow” probability at 25 percent. The corporate cost of capital is 9 percent.

1. What is the worst case MIRR? ____%

- What is the best case MIRR? ____%

Casper​ Landsten-UIA (B). Casper Landsten is a foreign exchange trader for a bank in New York. Using the values and assumptions​ below, he decides to seek the full 4.798 return available in U.S. dollars by not covering his forward dollar receipts —an uncovered interest arbitrage​ (UIA) transaction. Assess this decision.

The uncovered interest arbitrage​ (UIA) profit amount is ___ (Round to the nearest​ cent.)

explain the liability of makers , acceptors , drawers , drawees , indorsers , and accommodation parties

Question 1    Mr Tommy Tan is considering two potential investment projects that have similar capital requirements:

                              Year 0                   Year 1                   Year 2                   Year 3                   Year 4

Project A (4,000,000)        1,600,000        1,800,000        2,000,000        2,100,000       

Project B (4,200,000)        500,000           1,700,000        1,900,000        2,000,000

For Project A, the company cost of capital is assumed to be 14%. For Project B, assessed as the riskier project of the two, a risk-adjusted cost of capital of 15% is considered appropriate.

(b) Calculate the IRR of the two (2) projects and assess the projects using the investment appraisal technique of Internal Rate of Return.

(c) Is the company’s cost of capital suitable in the evaluation of projects with different risks? Explain your answer.

At what levels in the organization are budgets managed? To whom are budget monitoring reports issued? How are budget variances handled?

Write a brief but persuasive argument of purchasing stock over bonds. (No more than one page). Identify the various types of stock and bonds in your argument.

(a) Compute the future value of $500 after 5 years if it earns an annual interest rate of 6% compounded quarterly.

(b)Determine the monthly compounding interest rate that would cause $400 to grow to $644.89 in four years.

(c)A 20-year-old student saves $10 a day for her retirement. Every day she places $10 in a drawer. At the end of each year, she invests the accumulated savings ($3,650) into a brokerage account with an expected annual return of 8%. The last investment she will make is at the age of 64.

i. If she keeps saving in this manner, how much will she accumulate at the age of 64?

ii. If a 40-year-old investor also begins saving in the same manner, how much would he have at the age of 65?

iii. How much would the 40-year-old investor have to save each year to accumulate the same amount at the age of 65 as the 20-year-old student?

(d) Determine the value of the following cash flows at the end of year 4 with an annual interest rate of 8% compounded quarterly.

Write a brief but persuasive argument on purchasing or leasing a new $25,000,000.00 piece of medical equipment.

Calculate the following ratios and comment if the ratio is favorable or unfavorable. All amounts listed are correct and don’t worry if some of the ratios look out of sync, they are intentional.

a. Company 1 current assets are $500,000 and current liabilities are $325,000.

b. Company 2-Cash and cash equivalents are $100,000, net receivables are $250,000 and current liabilities are $300,000

c. Company 3-total liabilities are $750,000 and the balance in the unrestricted Fund Balance is $850,000

d. Company 4- Operating loss of $125,000 and total operating revenue is $6,000,000

e. Company 5 EBIT is $600,000 and total assets are $4,250,000

Mr Tommy Tan is considering two potential investment projects that have similar capital requirements:

Year 0 Year 1 Year 2 Year 3 Year 4

Project A (4,000,000) 1,600,000 1,800,000 2,000,000 2,100,000

Project B (4,200,000) 500,000 1,700,000 1,900,000 2,000,000

For Project A, the company cost of capital is assumed to be 14%. For Project B, assessed as the riskier project of the two, a risk-adjusted cost of capital of 15% is considered appropriate.

Calculate the IRR of the two (2) projects and assess the projects using the investment appraisal technique of Internal Rate of Return.

The following information is available for the Mercy Hospital:

Analyze this statement of operations and write a paragraph on what you perceive to be the strengths and weaknesses of Mercy Hospital. There are no mistakes in the above example.

WHAT ARE THE ADVANTAGES AND DISADVANTAGES OF INTERNET OF THINGS (IOT) IN AN ORGANIZATION

Derek plans to buy a $27,043.00 car. The dealership offers zero percent financing for 51.00 months with the first payment due at signing (today). Derek would be willing to pay for the car in full today if the dealership offers him $____ cash back. He can borrow money from his bank at an interest rate of 5.12%.

Given the following cash flows for a capital project, calculate its payback period and discounted payback period. The required rate of return is 8 percent.

The discounted payback period is