(Answered)-I need this done in 2 hours QUESTION 1 Suppose you want to buy a - (2025 Updated Original AI-Free Solution
Question
??I need this done in 2 hours
- Suppose you want to buy a house that costs $700,000. You are required to put 10% down, which means the amount to be borrowed is 90% of the price of the house. If you want a 30 year mortgage, and the borrowing rate is 4.6% APR, what would be your monthly payment? (Answer to the nearest penny)
2 points ??
- Suppose you want to buy a car that costs $19,000. If the dealer is offering 100% financing at 7% APR for a 5 year loan, what would be the monthly payment? (Answer to the nearest penny)
2 points ??
- Suppose you have accumulated $21,000 in credit card debt. If the interest rate on the credit card is 22.5% APR compounded monthly, how many years will it take you to pay off this debt if you pay $500 per month? (Answer to the nearest tenth of a year)
2 points ??
- Suppose you plan to retire at age 70, and you want to be able to withdraw an amount of $98,000 per year on each birthday from age 70 to age 100 (a total of 31 withdrawals). If the account which contains your savings earns 6.8% per year simple interest, how much money needs to be in the account by the time you reach your 70th birthday? (Answer to the nearest dollar.)?
Hint: This can be solved as a 30-year ordinary annuity plus one withdrawal at age 70, or as a 31-year annuity due.
2 points ??
- Today is your 25th birthday, and you want to save $1.4 Million by your birthday at age 70. If you expect to earn 7% APR compounded monthly in your retirement account, what constant payment at the end of each month must you deposit into the account through your 70th birthday in order to reach your retirement savings goal on your 70th birthday? (Answer to the nearest penny.)
2 points ??
- A 8.8% coupon bearing bond pays interest semi-annually and has a maturity of 4 years. If the annual yield to maturity is 9.9%, what is the current price of this bond? (Answer to the nearest penny.)
2 points ??
- A 5.8% coupon bearing bond pays interest semi-annually and has a maturity of 12 years. If the current price of the bond is $1,057.09, what is the yield to maturity of this bond? (Answer to the nearest hundredth of a percent, e.g. 12.34%)
2 points ??
- A company just paid a dividend of $1.30 per share. The consensus forecast of financial analysts is a dividend of $1.90 per share next year and $2.40 per share two years from now. Thereafter, you expect the dividend to grow 6% per year indefinitely into the future. If the required rate of return is 11% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
2 points ??
- A company just paid a dividend of $1.30 per share. You expect the dividend to grow 14% over the next year and 9% two years from now. After two years, you have estimated that the dividend will continue to grow indefinitely at the rate of 4% per year. If the required rate of return is 10% per year, what would be a fair price for this stock today? (Answer to the nearest penny.)
2 points ??
- Suppose a company has proposed a new 4-year project. The project has an initial outlay of $48,000 and has expected cash flows of $18,000 in year 1, $21,000 in year 2, $25,000 in year 3, and $31,000 in year 4. The required rate of return is 17% for projects at this company. What is the Payback for this project? (Answer to the nearest tenth of a year, e.g. 1.2)
2 points ??
- Suppose a company has proposed a new 4-year project. The project has an initial outlay of $64,000 and has expected cash flows of $19,000 in year 1, $25,000 in year 2, $29,000 in year 3, and $35,000 in year 4. The required rate of return is 12% for projects at this company. What is the discounted payback for this project? (Answer to the nearest tenth of a year, e.g. 3.2)
2 points ??
- Suppose a company has proposed a new 4-year project. The project has an initial outlay of $18,000 and has expected cash flows of $7,000 in year 1, $9,000 in year 2, $10,000 in year 3, and $14,000 in year 4. The required rate of return is 13% for projects at this company. What is the net present value for this project? (Answer to the nearest dollar.)
2 points ??
- Suppose a company has two mutually exclusive projects, both of which are three years in length. Project A has an initial outlay of $9,000 and has expected cash flows of $4,000 in year 1, $5,000 in year 2, and $4,000 in year 3. Project B has an initial outlay of $8,000 and has expected cash flows of $4,000 in year 1, $5,000 in year 2, and $5,000 in year 3. The required rate of return is 15% for projects at this company. What is the net present value for the best project? (Answer to the nearest dollar.)
2 points ??
- If a project has an initial outlay of $42,000 and cash flows of $11,000 per year for the next 5 years, what is the IRR of this project? (Answer to the nearest tenth of a percent, e.g. 12.3).
2 points ??
- Suppose a company has proposed a new 4-year project. The project has an initial outlay of $19,000 and has expected cash flows of $6,000 in year 1, $9,000 in year 2, $11,000 in year 3, and $14,000 in year 4. The required rate of return is 12% for projects at this company. What is the profitability index for this project? (Answer to the nearest hundredth, e.g. 1.23)
2 points ??
- A company is considering a 5-year project to open a new product line. A new machine with an installed cost of $110,000 would be required to manufacture their new product, which is estimated to produce sales of $70,000 in new revenues each year. The cost of goods sold to produce these sales (not including depreciation) is estimated at 53% of sales, and the tax rate at this firm is 33%. If straight-line depreciation is used to calculate annual depreciation, what is the estimated annual operating cash flow from this project each year? (Answer to the nearest dollar.)
2 points ??
- A company is considering a 6-year project that requires an initial outlay of $25,000. The project engineer has estimated that the operating cash flows will be $5,000 in year 1, $6,000 in year 2, $7,000 in year 3, $7,000 in year 4, $7,000 in year 5, and $8,000 in year 6. At the end of the project, the equipment will be fully depreciated, classified as 5-year property under MACRS. The project engineer believes the equipment can be sold for $5,000 at the end of the project. If the tax rate is 32% and the required rate of return is 13%, what is the net present value (NPV) of this project? (Answer to the nearest dollar.)
2 points ??
- A company is considering a 3-year project that requires an initial installed equipment cost of $15,000. The project engineer has estimated that the operating cash flows will be $3,000 in year 1, $7,000 in year 2, and $8,000 in year 3. The new machine will also require a parts inventory of $2,000 at the beginning of the project (assume this inventory can be sold for cost at the end of the project). It is also estimated that the equipment can be sold as salvage for an after tax salvage cash flow of $5,000 at the end of the project. If the tax rate is 39% and the required rate of return is 18%, what is the net present value (NPV) of this project? (Answer to the nearest dollar.)
2 points ??
- A company is considering a 5-year project to expand production with the purchase of a new automated machine using the latest technology. The new machine would cost $170,000 FOB St. Louis, with a shipping cost of $7,000 to the plant location. Installation expenses of $13,000 would also be required. This new machine would be classified as 7-year property for MACRS depreciation purposes. The project engineers anticipate that this equipment could be sold for salvage for $37,000 at the end of the project. If the corporate tax rate is 26%, what is the after tax salvage cash flow for this new machine at the end of the project? (Answer to the nearest dollar.)?
MACRS percentages for depreciation each year are as follows:Year % 1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45
2 points ??
- A company is considering an 8-year project to expand into a new geographical area. The project requires a new machine, which would cost $190,000 FOB San Francisco, with a shipping cost of $6,000 to the new plant location. Installation expenses of $13,000 would also be required. This new machine would be classified as 7-year property for MACRS depreciation purposes. The project engineers anticipate that this equipment could be sold for salvage for $59,000 at the end of the project. If the corporate tax rate is 36%, what is the after tax salvage cash flow for this new machine at the end of the project? (Answer to the nearest dollar.)?
MACRS percentages for depreciation each year are as follows:Year % 1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45
2 points ??
- A company is considering a 5-year project that opens a new product line and requires an initial outlay of $79,000. The assumed selling price is $95 per unit, and the variable cost is $62 per unit. Fixed costs not including depreciation are $15,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 13% per year, what is the accounting break-even point? (Answer to the nearest whole unit.)
2 points ??
- A company is considering a 5-year project that opens a new product line and requires an initial outlay of $75,000. The assumed selling price is $100 per unit, and the variable cost is $68 per unit. Fixed costs not including depreciation are $15,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 11% per year, what is the cash break-even point? (Answer to the nearest whole unit.)
2 points ??
- A company is considering a 5-year project that opens a new product line and requires an initial outlay of $78,000. The assumed selling price is $97 per unit, and the variable cost is $65 per unit. Fixed costs not including depreciation are $20,000 per year. Assume depreciation is calculated using stright-line down to zero salvage value. If the required rate of return is 12% per year, what is the financial break-even point? (Answer to the nearest whole unit.)
2 points ??
- After studying the economy, you forecast that there is a 70% chance of a good economy next year and a 30% chance of a poor economy. If the economy is good, you estimate that a stock you have been following would have a 12% return. Likewise, if the economy is poor, you estimate a -11% return for that same stock. The risk-free rate is 4.8%. What is the expected return for this stock? (Answer to the nearest tenth of a percent, but do not use a percent sign).?
?? Probability Return ? ? ? Good Economy 70% 12% Poor Economy 30% -11%
Risk-Free Rate = 4.8
2 points ??
- After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy 50%, and a bust economy a 20% chance of occurring. You also estimate that a certain stock would have a return of 33% in a boom economy next year, 16% in a neutral economy , and -13% in a bust economy. The risk-free rate is 4.8%. What is the expected return for this stock next year? (Answer to the nearest tenth of a percent, but do not use a percent sign).?
?? Probability Return ? ? ? Boom Economy 30% 33% Neutral Economy 50% 16% Bust Economy 20% -13%
Risk-Free Rate = 4.8%
2 points ??
- After some study of the economy, your forecast for next year is that a boom economy has a 30% chance of occurring, a neutral economy 50%, and a bust economy a 20% chance of occurring. You also estimate that a certain stock would have a return of 30% in a boom economy next year, 18% in a neutral economy , and -13% in a bust economy. The risk-free rate is 4.2%. What is the expected risk premium for this stock next year? (Answer to the nearest tenth of a percent, but do not use a percent sign).?
?? Probability Return ? ? ? Boom Economy 30% 30% Neutral Economy 50% 18% Bust Economy 20% -13%
Risk-Free Rate = 4.2%