A city has constructed a transit system hub downtown. It anticipated that in 20 years the hub will require renovation at a cost of $400,000.Rent for shops at the station is charged on an annual basis each year begining in year 1and will increase by $50 each year following.Given the rent is deposited at the end of each year into an investment account earning 5% intrest.How much should the initial rent collected be(in year 1)to just cover the cost of the rehabilitation
In: Finance
At the beginning of the current year, Snell Co. total assets were $282,000 and its total liabilities were $191,200. During the year, the company reported total revenues of $127,000, total expenses of $93,000 and dividends of $22,000. There were no other changes in equity during the year and total assets at the end of the year were $294,000. The company's debt ratio at the end of the current year is:
A: 35.0%.
B: 65.0%.
C: 67.8%
D: 147.00%
E: 53.8%
In: Accounting
76% of all bald eagles survive their first year of life. If 45
bald eagles are randomly selected, find the probability that
a. Exactly 34 of them survive their first year of life.
Correct
b. At most 33 of them survive their first year of life.
Correct
c. At least 35 of them survive their first year of
life._______
d. Between 34 and 41 (including 34 and 41) of them survive their
first year of life._______
In: Statistics and Probability
The following information is for the next five questions:
Ryan and Laurie Middleton just purchased their first home with a traditional (monthly compounding and payments) 6% 30-year mortgage loan of $150,000.
What is their monthly payment?
|
$5,96.84 |
||
|
$899.33 |
||
|
$9,000 |
||
|
$419.80 |
What is their interest payment during the first year?
What is their principal payment during the first year?
What is their interest payment during the 25th year?
What is their principal payment during the 25th year?
In: Finance
Use the discounted payback method, the net present value method, and the profitability index method to evaluate the following project:
Year 0 Initial Investment 900,000
Year 1 Income 175,000
Year 2 Income 450,000
Year 3 Additional investment 100,000
Year 4 Income 630,000
Discount rate 7%
DPB __________ years
NPV ______________
PI ______________
Would you recommend that the board accept or reject this project? ________________ Accept or reject
In: Finance
Suppose that the one-year interest rate is 10 percent in the United Kingdom. The expected annual rate of inflation for the coming year is 4 percent for the United Kingdom and 7 percent for Switzerland. The current spot exchange rate is £:SFr = 3.75. Using the precise form of the international parity relations, compute the one-year interest rate in Switzerland, the expected Swiss franc to pound exchange rate in one year, and the one-year forward exchange rate.
In: Finance
On January 1, Year 1, Beatie Co. borrowed $220,000 cash from Central Bank by issuing a five-year, 7 percent note. The principal and interest are to be paid by making annual payments in the amount of $53,656. Payments are to be made December 31 of each year, beginning December 31, Year 1. RequiredPrepare an amortization schedule for the interest and principal payments for the five-year period. (Round your answers to the nearest dollar amount.)
In: Accounting
A project is projected to cost $2,000,000 to undertake. It will generate positive cash inflows as follows: Year 1 - $400,000; Year 2 – 500,000; Year 3 - $650,000; Year 4 – 750,000; Year 5 – 800,000. What is the project’s discounted payback, given a 10% required rate of return?
Select one:
a. 4.45 years
b. 4.82 years
c. 4.92 years
d. 5.0 years
e. Discounted payback does not occur
In: Accounting
Based on the estimated future incremental cash flows, what is the highest price (total amount, not per share) JHC should offer Mobile for a cash acquisition? Assume a cost of capital of 13%. how would I find the answer to this? what would the excel formulas be?
if the incremental values are
19200000 for year 1
18900000 for year 2
19900000 for year 3
22350000 for year 4
26900000 for year 5
28000000 for years 6-30
In: Finance
You forecast a company's dividends for the next four years. In Year 1, you expect to receive $1.00 in dividends. In Year 2, you expect to receive $1.10 in dividends. In Year 3, you expect to receive $1.20 in dividends. In Year 4, you expect to receive $1.30. After Year 4, dividends are expected to grow at 2%. The rate of return for similar risk common stock is 7%. What is the current value of this company's stock?
In: Finance