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.)

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

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

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? 

Assume the current interest rate on a 1-year Treasury bond (1R1) is 6.50 percent, the current rate on a 2 year treasury bond (1R2) is 7.25 percent and the current rate on a 3 year treasury bond (1R3) is 8.50 percent. If the biased expectations theory of the term structure of interest rates is correct, what is the 1 year foward rate expected on treasury bills during year 3, 3f1? what is the formula to put into excel?

Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 4% rate after Year 3. Wilde’s tax rate is 25%.

Good Morning Food, Inc. is using the profitability index (PI) when evaluating projects. You have to find the PI for the company’s project, assuming the company’s cost of capital is 12.05 percent. The initial outlay for the project is $374,333. The project will produce the following end-of-the-year after-tax cash inflows of

Year 1: $138,270

Year 2: $1,735

Year 3: $13,342

Year 4: $254,678

Round the answer to two decimal places.

ABC Corp. is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 21%. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. Depreciation is calculated using the 5-year MACRS schedule, and the fixed asset will have a salvage value equal to 25% of the original cost at the end of year 4. All net working capital is recovered at the end of the project

1. Compute the values of annual depreciation expenses (B, C, D and E), the after-tax salvage cash flow (A) and the Net working Capital recovery value (F)

2. Compute the incremental net income of the investment for each year.

3. Compute the incremental cash flows of the investment for each year

4. Suppose the appropriate discount is 10 percent. What is the NPV of the project? Should the project go ahead?

Your company is considering a machine that will cost $ 4,520 at Time 0 and which can be sold after 3 years for $ 872 . To operate the machine, $ 490 must be invested at Time 0 in inventories; these funds will be recovered when the machine is retired at the end of Year 3. The machine will produce sales revenues of $ 1,178 /year for 3 years; variable operating costs (excluding depreciation) will be 41 percent of sales. Operating cash inflows will begin 1 year from today (at Time 1). The machine is in the 3-year MACRS class. The MACRS class has depreciation of 33% in year 1, 45% in year 2, 15% in year 3, and 7% in year 4. The company has a 31 percent tax rate, enough taxable income from other assets to enable it to get a tax refund from this project if the project's income is negative, and a 10 percent cost of capital. Inflation is zero. What are the terminal cash flows associated with ending this project? Note, I want only the Year 3 terminal cash flows, not the year 3 operating cash flows. Show your answer to the nearest $.01 Do not use the $ symbol in your answer

fiscal policy

ANSWER 1 IT IS SOLVE ALREADY, PLEASE ANSWER QUESTION 2

1. A government starts off with a total debt of $3.5 billion. In year one, the government runs a deficit of $400 million. In year two, the government runs a deficit of $1 billion. In year three, the government runs a surplus of $200 million. What is the total debt of the government at the end of year three?

1) Total debt was $3.5 billion=$3500 million

In year 1 deficit=$400 million

Therefore after year 1 debt was 3500+400=$3900 million

In year 2 deficit=$1 billion=$1000 million

After year 2 debt was 3900+1000=$4900 million

In year 3 surplus was $200 million

After year 3 debt was 4900-200=$4700 million

2. Specify whether expansionary or contractionary fiscal policy would seem to be most appropriate in response to each of the situations below. Indicate which direction aggregate demand and /or aggregate supply shifts.:
   1. A recession.
   2. A stock market collapse that hurts consumer and business confidence.
   3. Extremely rapid growth of exports.
   4. Rising inflation.
   5. A rise in the natural rate of unemployment.
   6. A rise in oil prices.