1. Suppose you have an investment that costs $80,000 at the beginning of the project, and it generates $30,000 a year for four years in positive cash flows. The cost of capital is 12%. The IRR of the project is 18.45% and the NPV is about $11,120. The IRR model assumes that at the end of the first year you can invest the $30,000 at ________.

a. 12.00%

b. a rate greater than the IRR

c.  rate less than the cost of capital

d. 18.45%

2. Find the Modified Internal Rate of Return (MIRR) for the following annual series of cash flows, given a discount rate of 14.00%: Year 0: -$65,000; Year 1: $25,000; Year 2: $12,000; Year 3: $12,000; Year 4: $12,000; and, Year 5: $12,000.

a. About 8.35%

b. About 6.35%

c. About 9.27%

d. About 7.88%

Problem in Forecasting Interest Rates based on unbiased expectations theory:

These are the rates today (June 15, 2018) for loans of equal risk.
R1 = 2%;
R2 = 3%
R3 = 4%
R4 = 5%

A. Given this information, calculate one-year forward rate for a one-year loan beginning 6/15/19 and ending on 6/15/20

B. Calculate the two-year forward rate for a one-year loan beginning 6/15/20 and ending on 6/15/21

C. Calculate the three-year forward rate for a one-year loan beginning 6/15/21 and ending on 6/15/22

D. Calculate the two-year forward rate for a two-year loan beginning 6/15/20 and ending on 6/15/22

1. If you are offered to invest an amount of $ 100,000 in a business opportunity that expected to achieve operating cash inflow after considering taxes (net of taxes & before depreciation) in the future as follows:

Year (1) $ 32,000, Year (2) $ 35,000, Year (3) $ 40,000, & Year (4) $ 25,000

Would you accept this business opportunity if the required rate of returns is 15%?

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2. If you have the following information about an investment opportunity:
   1. Initial investment (cash out- required capital) is $ 500,000
   2. Expected operating cash inflows( after considering taxes) in year (1) $ 200,000, in year (2) $ 260,000, in year (3) $ 250,000, & in year (4) $ 150,000

Calculate the payback period, the net present value if the cost of capital is % 15%, & also calculate the internal rate of return?

5. Marshall-Miller & Company is considering the purchase of a new machine for $60,000, installed. The machine has a tax life of 5 years, and it can be depreciated according to the depreciation rates below. The firm expects to operate the machine for 5 years and then to sell it for $18,500. If the marginal tax rate is 40%, what will the after-tax salvage value be when the machine is sold at the end of Year 5?

If we sell at the end of year 5 for $18,500 then determine if we have a gain or a loss and the appropriate tax consequence

Explain answer and how to figure on financial calculator please

Problem 18-03

The federal corporate income tax rate is 35 percent and firms may carry-back losses for two years and carry-forward losses for 20 years. The carry-back must occur before carry-forward. A corporation breaks even in year 1, earns $27,000 in year 2, but operates at a loss of $87,000 in year 3. It earns $73,000 in year 4, breaks even in year 5, and earns $43,000 in year 6. What are the taxes paid or refunded in each year? Enter your answers as positive values. If the answer is zero, enter "0". Round your answers to the nearest dollar.

. The following information pertains to Feyenoord, Inc.:

1. Net income for the year 2019 equals $ 360,000.
2. Since the beginning of year, $200,000 of convertible bonds (issued at par) were outstanding. Each of the 200, $1,000 bonds can be converted into 50 shares of common stock for the next 10 years. None of these bonds were converted during the year.
3. Since the beginning of the year, stock warrants were outstanding to buy 16,000 shares of common stock at $10 per share. None of these warrants were exercised during the year.
4. During the entire year, 200,000 shares of $5 par common stock were outstanding.
5. Feyenoord's income tax rate for the year is 30%.
6. The average market price for common stock during 2019 was $16.

Compute basic and diluted earnings per share for the year 2019.

Question Nine

Mr West decides to deposit $5000 in a BankEast Ltd account that pays 8% p.a. continuously compounded. What will be his account balance in five years?

Question Ten

Norton Industries Pty Ltd is looking at investing in Project X that is expected to generate the following cash flows each year for six years.

Suppose similar investments are paying a return of 10% pa compounded semi-annually. How much should the Project X cost Norton Industries?

Please show works, don't use excel.

The Accounting Equation Ginger Enterprises began the year with total assets of $505,000 and total liabilities of $227,000. Using this information and the accounting equation, answer each of the following independent questions. 1. What was the amount of Ginger's owners' equity at the beginning of the year? $ 2. If Ginger's total assets increased by $101,000 and its total liabilities increased by $71,000 during the year, what was the amount of Ginger's owners' equity at the end of the year? $ 3. If Ginger's total liabilities decreased by $30,000 and its owners' equity increased by $64,000 during the year, what was the amount of its total assets at the end of the year? $ 4. If Ginger's total assets doubled to $1,010,000 and its owners' equity remained the same during the year, what was the amount of its total liabilities at the end of the year?