Questions
66% of all bald eagles survive their first year of life. If 35 bald eagles are...

66% of all bald eagles survive their first year of life. If 35 bald eagles are randomly selected, find the probability that

a. Exactly 23 of them survive their first year of life.
b. At most 22 of them survive their first year of life.
c. At least 23 of them survive their first year of life.  
d. Between 21 and 26 (including 21 and 26) of them survive their first year of life.

In: Statistics and Probability

78% of all bald eagles survive their first year of life. If 43 bald eagles are...

78% of all bald eagles survive their first year of life. If 43 bald eagles are randomly selected, find the probability that a. Exactly 33 of them survive their first year of life. b. At most 36 of them survive their first year of life. c. At least 33 of them survive their first year of life. d. Between 31 and 37 (including 31 and 37) of them survive their first year of life.

In: Statistics and Probability

1. What's the NPV of the following cash flows with a 8% WACC? 2. What's the...

1. What's the NPV of the following cash flows with a 8% WACC?

2. What's the payback period of the following cash flows with a 8% WACC?

3. What's the discounted payback period of the following cash flows with a 8% WACC?

4. What's the profitability index of the following cash flows with a 8% WACC?

Year 0 = 100,000

Year 1 = 10,000

Year 2 = 50,000

Year 3 = 45,000

Year 4 = 25,000

In: Finance

Fred has the following data r e garding an available for sale debt security: YEAR ONE...

Fred has the following data r e garding an available for sale debt security:

YEAR ONE PURCHASE PRICE 2,000
12/31 YEAR ONE FAIR MARKET VALUE 3,000
YEAR TWO SALES PRICE 5,000

What is the amount of debit entry to OCI when instrument is sold in year 2?

What is the amount of recognized gain on income statement when instrument is sold in year 2?

In: Accounting

Mike buys a perpetuity-immediate with varying annual payments. During the first 5 years, the payment is constant and equal to 10.


Mike buys a perpetuity-immediate with varying annual payments. During the first 5 years, the payment is constant and equal to 10. Beginning in year 6, the payments start to increase. For year 6 and all future years, the payment in that year is K% larger than the payment in the year immediately preceding that year, where K < 9.2. 


At an annual effective interest rate of 9.2%, the perpetuity has a present value of 167.50. 


Calculate K

In: Finance

A loan of 10000$ is to be repaid with annual payments, at the end of each...

A loan of 10000$ is to be repaid with annual payments, at the end of each year, for the next 20 years. For the rst 5 years the payments are k per year ; the second 5 years, 2k per year ; the third 5 years, 3k per year ; and the fourth 5 years, 4k per year. (a) Draw two timelines describing this series of payments. (b) For each of the timelines in (a), find an expression for k in terms of annuities an.

In: Finance

Assume that the real risk free rate is constant at 1.5 %. The yield is 2.3%...

Assume that the real risk free rate is constant at 1.5 %. The yield is 2.3% on 1-year treasury, 3.0% on 2-year treasury, 3.5% on 3-year treasury, and 5.0% on 5-year treasury securities. What is the expected rate on three year treasury securities, 2 years from now?

What is the expected rate on 3year treasury securities, 2 years from now? Show all the work with formula

In: Finance

71% of all bald eagles survive their first year of life. If 45 bald eagles are...

71% of all bald eagles survive their first year of life. If 45 bald eagles are randomly selected, find the probability that

a. Exactly 32 of them survive their first year of life. ____
b. At most 35 of them survive their first year of life.____
c. At least 34 of them survive their first year of life.____
d. Between 29 and 36 (including 29 and 36) of them survive their first year of life.____

In: Statistics and Probability

You are comparing two projects. One is a four-year project costing $1 million and will provide...

You are comparing two projects. One is a four-year project costing $1 million and will provide benefit of $500K/year. The second is an eight-year project with annual CFs of $500K/year and an initial cost of $1.5 million. If there is a 70% chance the cost of the first project will drop by 30% after the first four years and the remaining cash flows stay at $500K/year, which project is the better choice? The discount rate is 10%.

In: Finance

A floting rate mortgage loan is made for $100,000 for a 30-year period at an initial...

A floting rate mortgage loan is made for $100,000 for a 30-year period at an initial rate of 12 percent interest. However, the borrower and lender have negotiated a monthly payment of $800.00

What will the loan balance at the end of year 1?

What if the interest rate increases to 13 percent at the end of year 1? How much interest will be accrued as negative amortization in year 1 if the payments remains at $800? Year 5?

In: Finance