Q)

Determine the present worth of a geometric gradient series with a cash flow of $38,537 in year 1 and increases of 11% each year begining of year 4 through year 11. The interest rate is 16% per year.

Q) The capital cost (CC), now, when a family want to have $6,004, per year, starting in year 26 and continuing forever, is close to. Assume  rate of return13%

Q)

Alternative X has a first cost of $20000, an operating cost of $9000 per year, and a $5000 salvage value after 6 years. Alternative Y will cost $18,898 with an operating cost of $7,514 per year and a salvage value of $7,270 after 3 years.  Note: i=0.12% refers to  i=12%

At an MARR of 0.12% per year, find the PW of machine Y?

Question 2/ Firm B next dividend will be $2.5 per share. The dividends are expected to grow during year 1 by 21.5% and during year 2 by 18.5%. From year 2 to year 6 they are expected to grow by 12%. From year 6 to year 12 there is no growth of the dividends. From year 12 there will be a constant growth rate of 8% forever. The required rate of return on the stocks is 11.5%. a/ Compute the intrinsic value of the stock now? (Show your steps) b/ Compute the intrinsic value of the stock at the end of year 2? (Show your steps) c/ Compute the intrinsic value of the stock at the end of year 8? (Show your steps) d/ Compute the intrinsic value of the stock at the end of year 22? (Show your steps)

Question 2/ Firm B next dividend will be $2.5 per share. The dividends are expected to grow during year 1 by 21.5% and during year 2 by 18.5%. From year 2 to year 6 they are expected to grow by 12%. From year 6 to year 12 there is no growth of the dividends. From year 12 there will be a constant growth rate of 8% forever. The required rate of return on the stocks is 11.5%.

a/ Compute the intrinsic value of the stock now? (Show your steps)
b/ Compute the intrinsic value of the stock at the end of year 2? (Show your steps)

c/ Compute the intrinsic value of the stock at the end of year 8? (Show your steps)

d/ Compute the intrinsic value of the stock at the end of year 22? (Show your steps)

Speedy delivery company on Jan. 1 2021, purchased a van for $20,000. to complete the purchase, the company also incurred $800 shipping cost and $1,200 sales tax.

Speedy estimates that at the end of its the four- year service life the van will be worth 4,000. during the four year period, the company expects to drive the van 100,000 miles. actual miles driven each year were 32,000 miles in year 1; 35,000 in year 2 and 27,000 in year 3 and 6,000 miles in year 4.

A. using straight depreciation method, what is annual depreciation expense?

B. Using the double declining balance method what are the amounts of depreciation expense for year 3 and year 4?

C. using activity-based method what is the balance of accumulated depreciation at the end of year 2?  

You have $1,000 to invest over an investment horizon of three years. The bond market offers various options. You can buy (i) a sequence of three one-year bonds; (ii) a three-year bond; or (iii) a two-year bond followed by a one-year bond. The current yield curve tells you that the one-year, two-year, and three-year yields to maturity are 3.5 percent, 4 percent, and 4.5 percent respectively. You expect that one-year interest rates will be 4 percent next year and 5 percent the year after that. Assuming annual compounding, compute the return on each of the three investments. Instructions: Enter your responses rounded to the nearest two decimal places. Expected return for (i) = ___% Expected return for (ii) =____ % Expected return for (iii) =____ %

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $330,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it will be obsolete 10 years from today. The machine is currently priced at $1,700,000. The cost of the machine will decline by $102,000 per year until it reaches $1,190,000, where it will remain.

a. If your required return is 14 percent, calculate the NPV if you purchase the machine today.

b. If your required return is 14 percent, calculate the NPV if you wait to purchase the machine until the indicated year.
  

Jazmin a college graduate has in saving account $6,974 by the end of her first year of work.

Using an interest rate of 5%, calculate:

1. How much money will Jazmin have the end of year 12 if she keeps saving the same amount every year. Draw the cash flow diagram and calculate.

2. How much money will she have at the end of year if she keeps saving the same amount every, year and she buys a car for $7,000 cash at the end of year 6.

Draw the cash flow diagram and calculate.

3. If Jazmin decides to increase her initial funds by 3% for every subsequent year ...   until the end of year 12). How much money will she have at the end of year 12? Draw the cash flow diagram and calculate,

4. If Jazmin decides to increase her initial $6,974 by $500 for every subsequent year ... until the end of year 12). How much money will she have at the end of year 12? Draw the cash flow diagram and calculate,

1A) Your firm is evaluating a capital budgeting project. The estimated cash flows appear below. The board of directors wants to know the expected impact on shareholder wealth. Knowing that the estimated impact on shareholder wealth equates to net present value (NPV), you use your handy calculator to compute the value. What is the project's NPV? Assume that the cash flows occur at the end of each year. The discount rate (i.e., required rate of return, hurdle rate) is 14.5%. (Round to nearest penny)

1B) What is the discount rate at which the following cash flows have a NPV of $0? Answer in %, rounding to 2 decimals.

Year 0 cash flow = -145,000
Year 1 cash flow = 35,000
Year 2 cash flow = 42,000
Year 3 cash flow = 43,000
Year 4 cash flow = 30,000
Year 5 cash flow = 41,000
Year 6 cash flow = 42,000

ANSWER

You working as a fund manager and trying to value the stock of MELUR Berhad. Company has 10 million shares outstanding. All the answer must be calculated in Microsoft Excel. Below are the projections for the next four years based on the following assumptions:

MELUR Berhad

-Sales will be RM 600 million in year 1

-Sales will grow at 20% in year 2 and 3 while at year 4 is 15%

-Interest expenses will be RM30 million per year

-Depreciation expenses will be RM 10 million per year

-Marketing expenses will be 20 % of sales in each year

-Income tax rate is 40%

-Earnings retention ratio will be fixed at 0.60

-Per share dividend will grow at 4% indefinitely from year 5 and thereafter

-You estimated that required rate of return will be at 18%.

Questions:

1. Calculate the EBIT from year 1 until year 4.

2. Calculate net income from year 1 until year 4.

3. Calculate dividend per share from year 1 until year 4.

(10 Marks

4. Calculate price of the stock at year 4 (terminal value), theoretical price of the stock.

5. Assume current market price is RM105.50, should you purchase the Melati Berhad stock?

pseudocode please!

Assignment 5B: Moneyball: Part 2. Similar to the previous assignment, you’re going to read in the number of years the player played and the starting year of that player – followed by the statistics for those years. This time, however, you’re going to print out the years from worst to best in sorted order. Hint: this will require a second array to store years. If you can sort one array, can you sort both?

Sample Output #1: Enter the number of years: 5 Enter the starting year: 2003 Enter stat for year 2003: 5 Enter stat for year 2004: 4 Enter stat for year 2005: 7 Enter stat for year 2006: 1 Enter stat for year 2007: 3 2006|2007|2004|2003|2005| Sample Output #2: Enter the number of years: 6 Enter the starting year: 1879 Enter stat for year 1879: 70 Enter stat for year 1880: 89 Enter stat for year 1881: 111 Enter stat for year 1882: 65 Enter stat for year 1883: 105 Enter stat for year 1884: 98 1882|1879|1880|1884|1883|1881|