One year ago, the Tyler Rose closed-end fund had a NAV of $35.19 and was selling at an 11% discount. Today, the fund has a NAV of $36.42 and is selling at a 7.5% premium. During the year, the fund paid a dividend distribution of $.48 and a capital gain distribution of $.97.

A. Calculate the NAV-based HPR for the fund for the year.

B. Calculate the market-based HPR for the fund for the year.

C. Recalculate the market-based HPR for the fund for the year, assuming the fund was selling at an 8.8% premium at the beginning of the year and an 11.3% discount at the end of the year.

Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

$900 per year for 10 years at 8%. $

$450 per year for 5 years at 4%. $

$1,000 per year for 5 years at 0%. $

Rework parts a, b, and c assuming they are annuities due.

Future value of $900 per year for 10 years at 8%: $

Future value of $450 per year for 5 years at 4%: $

Future value of $1,000 per year for 5 years at 0%: $

A construction company plans to invest in new equipment to improve their productivity. The planned investment is $500,000 now and $100,000 in year 1.   The gross income for year 1 is $175,000, year 2 is $300,000, and year 3 is $600,000. Taxes related to the investment are $50,000 in year 1, $75,000 in year 2 and $100,000 in year 3.

Determine:

1. The before tax rate of return for the investment
2. The after-tax rate of return for the investment
3. How does the after-tax rate of return compare to the company’s MARR of 15%?

SHOW WORK AND DONT USE EXCEL

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

$200 per year for 10 years at 10%. $ ___?

$100 per year for 5 years at 5%. $ ___?

$600 per year for 5 years at 0%. $ ___?

Rework previous parts assuming they are annuities due.

Present value of $200 per year for 10 years at 10%: $ ____?

Present value of $100 per year for 5 years at 5%: $ ____?

Present value of $600 per year for 5 years at 0%: $____?

Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

$1,000 per year for 10 years at 8%. ____?

$ $500 per year for 5 years at 4%. ____?

$600 per year for 5 years at 0%. ____?

Rework parts a, b, and c assuming they are annuities due.

Future value of $1,000 per year for 10 years at 8%: ____?

Future value of $500 per year for 5 years at 4%: ____?

Future value of $600 per year for 5 years at 0%: ____?

Sandpiper Company has 15,000 shares of cumulative preferred 1% stock, $100 par and 50,000 shares of $15 par common stock. The following amounts were distributed as dividends: Year 1 $37,500 Year 2 12,000 Year 3 45,000 Determine the dividends per share for preferred and common stock for each year. Round all answers to two decimal places. If an answer is zero, enter '0'. Year 1 Year 2 Year 3 Preferred stock (Dividends per share) $ $ $ Common stock (Dividends per share) $ $ $

A few years ago, you got married and bought a house with an adjustable rate mortgage with the

following terms:

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.

a) What is your loan balance at year 5? (5pts)

b) What is the effective interest rate is paid off after year 5 (10 pts)?

A few years ago, you got married and bought a house with an adjustable rate mortgage with the following terms: 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. a) What is your loan balance at year 5? (5pts) b) What is the effective interest rate is paid off after year 5 (10 pts)?

A hospital is considering the purchase of a piece of medical equipment that costs $1,500,000 and has a useful life of five years and no salvage value at the end of its useful life. The equipment generates revenues of $650,000 per year and operating expenses of $300,000. Calculate NPV, payback, BCR, and IRR, should the equipment be purchased if the discount rate is 6% or 10%?

           Revenue   Expense

   Year 0       -      $1,500,000 (investment)

   Year 1       $650,000   $300,000

   Year 2       $650,000   $300,000

   Year 3       $650,000   $300,000

   Year 4       $650,000   $300,000

   Year 5       $650,000   $300,000