Using an excel document and formula: Cannonier, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at a discount rate of 11 percent? At 24 percent?
Year Cash Flow 1 $1,225
Year 2 1,345
Year 3 1,460
Year 4 1,590
In: Finance
On January 1, Year 1, Beatie Co. borrowed $240,000 cash from Central Bank by issuing a five-year, 6 percent note. The principal and interest are to be paid by making annual payments in the amount of $56,975. Payments are to be made December 31 of each year, beginning December 31, Year 1.
a) Required Prepare an amortization schedule for the interest and principal payments for the five-year period.
In: Accounting
Due to a recession, expected inflation this year is only 2.75%. However, the inflation rate in Year 2 and thereafter is expected to be constant at some level above 2.75%. Assume that the expectations theory holds and the real risk-free rate (r*) is 1.5%. If the yield on 3-year Treasury bonds equals the 1-year yield plus 1.5%, what inflation rate is expected after Year 1?
In: Economics
A colleague asks for your help in finding the discount rate where the NPV=0 for a set of cash flows. You quickly recall that this is the IRR for a project. Answer in %, rounding to 2 decimals.
Year 0 cash flow = -109,000
Year 1 cash flow = 43,000
Year 2 cash flow = 35,000
Year 3 cash flow = 36,000
Year 4 cash flow = 37,000...
In: Finance
In a 22-year period, a particular location was hit by 38 major hurricanes. Assume that major hurricanes are independent of each other and that the mean number of hurricanes per year has not changed.
a) What's the probability of no hurricanes next year?
b) What's the probability that during the next year, there is exactly one hurricane?
c) What's the probability that during the next year, there is more than one hurricane?
In: Statistics and Probability
URGENT
.The following data are available for a bond.
Face value 3,000
Coupon Rate 12%
Years to Maturity 5
Redemption with 10% premium
Repayable in the 1st year 10%, 2nd year 30%
3rd year 25%, 4th year 25%, 5th year 10%
Yield to maturity
a.12% b. 10% c. 16%
Calculate the market value of the bond for each
case?
In: Finance
•You are looking at a new project and you have estimated the following cash flows:
Year 0: CF = -$150,000
Year 1-2: CF = $80,000
Year 3-4: CF = $50,000
Year 5-6: CF = $30,000
Year 7: CF = -$180,000
Your cost of capital is 10%
Please calculate NPV and IRR, and decide whether we should take this project?
In: Finance
Using Python 3
In 2017, the tuition for a full time student in a university is $6,450 per year. The tuition will be going up for the next 7 years at a rate of 3.5% per year. Write your program using a loop that displays the projected year tuition for the next 7 years. You should display the actual year (2018, 2019, through 2024) and the tuition amount per year.
In: Computer Science
In the current year Jose, a cash basis taxpayer, was offered $5 million for signing a professional baseball contract. He countered asking that he receive $1,100,000 a year for 5 years beginning in the current year. The team accepted the counteroffer. In accordance with the contract Jose received $1,100,000 in the current year. For tax purposes, how much income is he treated as constructively receiving in the current year?
In: Accounting
The Dry Wall Division reports the following operating data for
the past two years:
| Year 1 | Year 2 | |||||||
| Margin | 15 | % | ? | |||||
| Turnover | 2.6 | 3 | ||||||
| Average operating assets | ? | $ | 150,500 | |||||
| Net operating income | $ | 40,500 | ? | |||||
| Stockholders’ equity | $ | 80,500 | $ | 125,500 | ||||
| Sales | ? | ? | ||||||
The return on investment at the Dry Wall Division was exactly the
same in Year 1 and Year 2.
The margin in Year 2 was:
In: Accounting