A new booster machine will cost $480,000. The anticipated increase in revenue will be $140,000/year for 5-years. Annual expenses will be $30,000/year for 5-years. The depreciable life is estimated to be 5-years and the salvage value will equal $35,000. Additional inventory necessary to run the machine will be $26,000. Initial training expenses are $20,000. Tax rate equals 40%.

 Find the NPV@10%.

 Find the IRR.

 Find the discounted payback and convert this into a percentage.

A three-year project will cost $150,000 to construct. This will be depreciated straight line to zero over the three-year life. The project is expected to generate sales of $450,000 per year. It has annual variables costs of $200,000 and annual fixed costs of $100,000 per year. The appropriate tax rate is 25 percent and the required rate of return on the project is 16 percent. Assume that a salvage company will pay $60,000 (before taxes) for the assets at the end of year 3. The project also has an initial net working capital requirement of $40,000, which is fully recoverable when the project ends. Note that the project only depreciates the $150,000 initial cost. The salvage value is excluded from depreciation. What is the project’s net present value (NPV)

In a recent school year in the state of Washington, there were 319,000 high school students. Of these, 154,000 were girls and 165,000 were boys. Among the girls, 41,100 dropped out of school, and among the boys, 10,500 dropped out. A student is chosen at random. Round the answers to four decimal places.

(a) What is the probability that the student is female?

(b) What is the probability that the student dropped out?

(c) What is the probability that the student is female and dropped out?

(d) Given that the student is female, what is the probability that she dropped out?

(e) Given that the student dropped out, what is the probability that the student is female?

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 51 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.4 pounds, what is the probability that the sample mean will be each of the following?

Appendix A Statistical Tables

a. More than 59 pounds
b. More than 57 pounds
c. Between 55 and 58 pounds
d. Less than 54 pounds
e. Less than 49 pounds

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

a. enter the probability that the sample mean will be more than 59 pounds

b. enter the probability that the sample mean will be more than 57 pounds

c. enter the probability that the sample mean will be between 55 and 58 pounds

d. enter the probability that the sample mean will be less than 54 pounds

e. enter the probability that the sample mean will be less than 49 pounds

a borrower takes out a 15 year mortgage loan for 100,000 with an interest rate of 5% plus 3 points. what is the effective annual interest rate on the loan if the loan is carried 15 years.

You purchase a 10 year bond with an annual fixed coupon rate of 7% and a par value of $1,000, when the yield to maturity on such bonds is 6%. You hold the bond for a year and then sell it. Assume the yield to maturity on the bond falls to 5.5% by the time you sell. What is your holding period return?

The parents of a 4 year old female check her into the emergency room after they found her in her room in a stupor. She could not answer the basic questions they asked. The parents are worried she may have overdosed. They noticed there were lots of water bottles and candy wrappers in her room. Although she eats and sleeps all of the time, she never gains weight and is always tired. She urinates a lot.

determine which part of the endocrine system could be experiencing problems. List some other info that could confirm or rule out your initial diagnosis (test you might be able to run on patient). Explain your reasoning.

ABC owns a machine and looking to sell it in 1 year. The machine costs $10,000,000 currently. The price of the machine has a historical volatility of 12%. A buyer is interested in entering into a contract to have the option to buy the machine in one year for $10,000,000. If the risk-free rate is 6% compounded continuously, what is the value of the option contract?

1. What is the price of a 25-year sovereign bond with a 4.5 per cent yield with annual coupons of 3.5 per cent and a £1,000 face value? How do you define a sovereign bond? Take the above bond in and determine what would be the price of this bond if it paid no coupons? How would you define this type of bond? What would be the benefits for a corporation to issue a bond with no coupons?

A business owner needs a loan to cover the first year of fixed costs associated with launching a new product. She has 2 options:

- the first loan option would need to be repaid in 12 equal payments, with a fixed cost of borrowing set at $1.35 million.

- the other option would charge a simple interest payment plan of 2.5% (on whatever the principal is) and it would need to be repaid within six months.

The amount of money required is not given. Compare the two options and find the point at which the borrowing cost of option 2 equal options 1.