could you solve this with explanation?
The Atlanta Braves signed an outfielder to a five-year contract. The contract calls for the following cash flows:
If the outfielder has a discount rate of 5.00% per year, what is the value of his contract today (in millions)? (Express answer in millions. $1,000,000 would be 1.00)
In: Finance
In evaluating a piece of equipment for its optimum replacement interval, the following table of marginal costs were calculated. Year 1 2 3 4 5 MC(year1) $11,755 (year 2)$12,390 (year 3)$12,750 (year 4) $12,955 (YEAR 5)$13,425 The best available technology on the market costs $30,000 with projected revenues of O&M of $10,000 and O&M starting at $2500 and increasing $2000 per year. If corporate MARR is 18%, what is your recommendation? [year]
In: Finance
Henderson company had a beginning-of-the-year total assets of 300,000 and total liablities of 180,000.
A) if during the year total assets increased by 15,000 and total liabilities increased by 40,000, what is the end-of-year total stockholders equity
B) if during the year total assets increased by 60,000 and total liabilities decreased by 5,000 what is the end-of-year total stockholders equity
C) if during the year the total liabilties increased by 40,000 and total stock holders equity increased by 35000 what are the end-of-year total assets
In: Finance
Machine X has a first cost of $70,000 and an operating cost of $21,000 in year 1, increasing by $500 per year through year 5 with a salvage value of $13,000. Machine Y has a first cost of $62,000 and an operating cost of $21,000 in year 1, increasing by 3% per year through year 10 with a salvage value of $2000. If the interest rate is i =10% per year, evaluate which machine must you choose on the basis of:
(a) the present worth analysis,
(b) the conventional B/C analysis
In: Economics
Crofter Ltd had total assets of $950,000 and equity of $290,000 at the beginning of the year. At the end of the year, the company had total assets of $810,000. During the year, the company sold no new equity. Net income for the year was $140,000. At the end of the year, Crofter Ltd paid total dividends of $120,000.
Required
(i) Please calculate Crofter's growth rate using start-of-year equity.
(ii) Please show how you get the same result if you base your calculation on the end-of year equity figure.
In: Finance
Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent. $500 per year for 10 years at 12%. $ $250 per year for 5 years at 6%. $ $400 per year for 16 years at 0%. $ Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent. $500 per year for 10 years at 12%. $ $250 per year for 5 years at 6%. $ $400 per year for 16 years at 0%. $
In: Finance
Loan: $240,000
Term: 20 years
Initial Rate: 4%
Margin: 2% over the Index Rate
Lifetime Max: 4.5%
The index rate was 2% in year 1, 1.5% in year 2, 4% in year 3, 1% in year 4, and 1% in year 5.
In: Finance
In: Economics
Consider the following data for the country below.
Real GDP per Capita$60,000, Year 1 Population 300 ,Year 1 and Year 2(Millions) Inflation Rate(%) 3 Growth Rate Real GDP (%),Year 1 to Year 2 8
Instructions: In part a, enter your answer as a whole number. In part b, round your answer to 2 decimal places.
a. What is real GDP per capita in year 2? $
b. What is real GDP in year 2? $ trillion
In: Economics
Find the future values of these ordinary annuities. Compounding occurs once a year. Round your answers to the nearest cent.
$900 per year for 16 years at 16%.
$450 per year for 8 years at 8%.
$400 per year for 6 years at 0%.
Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.
$900 per year for 16 years at 16%.
$450 per year for 8 years at 8%.
$400 per year for 6 years at 0%.
In: Finance