A baseball player is offered a 5-year contract that pays him the following amounts:

Year 1: $1.41 million

Year 2: $1.67 million

Year 3: $2.12 million

Year 4: $2.79 million

Year 5: $3.46 million

Under the terms of the agreement all payments are made at the end of each year. Instead of accepting the contract, the baseball player asks his agent to negotiate a contract that has a present value of $1.70 million more than that which has been offered. Moreover, the player wants to receive his payments in the form of a 5-year ANNUITY DUE. All cash flows are discounted at 11.00 percent. If the team were to agree to the player's terms, what would be the player's annual salary (in millions of dollars)? (Express answer in millions. $1,000,000 would be 1.00)

A light year is the distance light travels in 1 year.

Light travels at 3*10⁸ meters* sec^-1.

Write a program that calculates and displays the number of meters light travels in a year.

An asset used in a 4-year project falls in the 5-year MACRS class (refer to MACRS table on page 277), for tax purposes. The asset has an acquisition cost of $16,517,578 and will be sold for $7,378,085 at the end of the project. If the tax rate is 0.28, what is the aftertax salvage value of the asset ?

The Jones Company has just completed the third year of a​ five-year MACRS recovery period for a piece of equipment it originally purchased for

$ 296 comma 000$296,000.

a. What is the book value of the​ equipment?

b. If Jones sells the equipment today for

$ 182 comma 000$182,000

and its tax rate is

35 %35%​,

what is the​ after-tax cash flow from selling​ it?

c. Just before it is about to sell the​ equipment, Jones receives a new order. It can take the new order if it keeps the old equipment. Is there a cost to taking the order and if​ so, what is​ it? Explain.​ (Assume the new order will consume the remainder of the​ machine's useful​ life.)

Note​:

Assume that the equipment is put into use in year 1.

2.

ou are considering the following two projects and can take only one. Your cost of capital is

11.0 %11.0%.

The cash flows for the two projects are as follows​ ($ million):

a. What is the IRR of each​ project?

b. What is the NPV of each project at your cost of​ capital?

c. At what cost of capital are you indifferent between the two​ projects?

d. What should you​ do?

A fund will need to pay out $2 million next year, $3 million the following year, and then $5 million in the fifth year . If the discount rate is 7%, what is the Macaulay duration of this set of payments?

A. 2.98

B. 3.10

C. 3.20

D. 3.15

5. The mean room and board expense per year at four-year colleges is $10,453 and standard deviation $1650. You randomly select 64 four-year colleges.

a. What is the probability that the mean room and board is less than $10,750?

b. What is the probability that the mean room and board is between $9,700 and 10,300?

Predict what has happened to the yoga pants market this year relative to last year. Make sure to explain whether there is a movement along either the demand curve or supply curve or a shift of the demand curve, the supply curve, or both, and what your prediction is for how equilibrium quantity and price have changed relative to last year. Limit your answer to 3-4 sentences

Last year a company had sales of $800,000, operating costs of 70%, and year-end assets of $1,500,000. The debt-to-total-assets ratio was 20%, the interest rate on the debt was 10.00%, and the tax rate was 21%. The new CFO wants to see how the ROE would have been affected if the firm had used a 30% debt ratio. Assume that sales and total assets would not be affected, and that the interest rate and tax rate would both remain constant. How much would the ROE change in terms of percentage points in response to the change in the capital structure?

The current 1-year spot rate on a treasury bill is 4.25% and the current 1-year spot rate on a BB-rated bond of equivalent risk to a prospective loan is 11.55%. The bond has a marginal probability of default in year 2 of 8.5% 11. What is the marginal probability of default in year 1? (3 points) 12. What is the cumulative probability of default over the 2 years? (4 points)