Determine the net present value of the project. Use the factor of 3.605 for the discount rate of 12% as present value of annuity in 5 years.

Q: The owner of Supreme Fitness has requested your assistance as financial manager in advising on the…

A: A financial manager is someone who is responsible for all of an organization's main financial…

Q: 4.4 ROE decomposition 2021  Tax Effect    Financial Cost Effect    Operating Margin…

A: ROE: It is a measure of profitability and is estimated by dividing the net income by the equity…

Q: 4. Gran's Cleaning Service would like to purchase an ultrasound machine for cleaning window blinds.…

A: To Find: IRR Net present Value

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Average daily balance The average daily balance method is used to calculate the periodic finance…

Q: What types of loans does the IMF provide?

A: IMF refers to International Monetary Fund.It is an international organization that helps in the…

Q: The tax rate is 20% Calculate the operating cash flow for the repair shop using the three methods…

A: Operating Cash Flow: It is the amount of cash generated by the firm from its normal business…

Q: A retrofitted space-heating system is being considered for a small office building. The system can…

A: MARR = 15% Year Cash Flow  0 -110,000.00 1 30,070.00 2 30,070.00 3 30,070.00 4…

Q: What are the disadvantages of only accounting for cash income and expenses in basic cost and return…

A: Return means earn additional over the investment amount during the period. Before investing in any…

Q: If you would like to have $400000 for your retired and you save equal amount monthly in a saving…

A: Formula Monthly saving amount = FV/[(1+r/m)t*m-1]/(r/m) Where FV - Future value i.e. $400,000 r -…

Q: st borrowed $267,000 at 2.125%for 15-years.My lender is looking to sell my loan and the market rate…

A: The loans are paid by the monthly regular payments that carry the payment for principal amount and…

Q: a year. John's Workshop electric bills are Ș He wants to reduce them by using solar electricity, so…

A: The present worth method is a capital budgeting technique used to evaluate the best project or…

Q: Determine whether Livestock Wealth is using an “inside-out” or “outside-in” perspective

A: Platform for community farming By raising its asset valuation to R100 million, Livestock Finance…

Q: What is the future value of $3,078 invested for 8 years at 6 percent compounded annually? Multiple…

A: Future value = present value × (1+ periodic interest rate)^n

Q: onsider the following four coupon bonds, whose contract specifications are given below. Suppose that…

A: The bond when coupon rate are equal to prevailing interest rate on the bond than price of bond will…

Q: You need to accumulate $10,000. To do so, you plan to make deposits of $1,450 per year - with the…

A: Future value of an annuity can be calculated as: = Annuity payment * FVAF (i%, n years)

Q: The following limit order book was observed for Tesco PLC: Bid quantity Bid Price Ask Price Ask…

A: Bid Price is the price that the buyer is willing to pay for the underlying stock or commodity Ask…

Q: (c) US Bank is considering investing in a three years' project in Europe country. The project would…

A: NPV is the net present value of all cash inflows and outflows of a project. This is a discounted…

Q: Does a steady low-volatilty enviroment, increase, decrease, or have no effect on the credit spread…

A: If we closely observe we can find out that there are number of participants in a financial market.…

Q: AG company would like to spend RM 700,000 on buying equipment. The cash inflows as in the Table.…

A: The payback period refers to the period within which the initial investment is recovered from the…

Q: Bond matures in 18 years and pay 14 percent interest annually. If the bond is purchased for $1,225…

A: Face value = $1000 Bond price = $1225 Coupon rate = 14% Annual coupon amount = Face value*Coupon…

Q: Five years ago, $12, 000 was deposited into a savings account that provides an interest of 6.5%…

A: A savings account is a deposit account opened with banks and other financial institutions. The…

Q: A stock with price 100 kr follows a one step Binomial model and will either increase invalue to 120…

A: Risk averse investors are those investors are which avoid taking too much risk and believes more in…

Q: Please explain what would be the difference between a corporate board and a VC

A: Investment portfolio funding  Basically, there are two types of Investment portfolio funding  1.…

Q: Why are stocks called "equities"? Are bonds also equities? 1.2 In what ways are dividends similar to…

A: Stocks and bonds are financial securities. Companies issue stocks and bonds for the purpose of…

Q: discuss the main problems sole trader's encounter in a bid to raise finance on kenya’s financial…

A: A sole trader, also known as a sole proprietorship, is a simple business structure in which one…

Q: You want to make an investment of $2,000,000 in new equipment which is expected to generate $230,000…

A: Given: Investment = $2,000,000 Revenue = $230,000

Q: Your factory has been offered a contract to produce a part for a new printer. The contract would…

A: Initial cash flow = - $8.07 million Annual Cash flow = $5.21 million discount rate = 0.076 (i.e.…

Q: Beginning in January, a person plans to deposit $1000 at the end of each month into an account…

A: The concept of the time value of money states that the same amount of money has more value today…

Q: Future value of an​ annuity)  Imagine that Homer Simpson actually invested the ​$160,000 he earned…

A: The future value of annuities will includes the amount being deposited and amount of compounded…

Q: Ed Long promised to pay his son $370 semiannually for 11 years. Assume Ed can invest his money at 4%…

A: Present Value of Ordinary Annuity refers to the concept which dictates the discounted value of a sum…

Q: D4) Please explain why liquidity ratios, profitability ratios, and efficiency ratios are important…

A: Ratio are very important indicators of performance of sector and company and give good comparison of…

Q: What is the relationship between bond price and interest rate? Describe in fully how this…

A: Bonds are referred to as those investment securities which are issued by companies as units of…

Q: Assume Gillette Corporation will pay an annual dividend of $0.61 one year from now. Analysts expect…

A: Year Dividend   1 0.61000000000000   2 0.68137000000000 i.e. last dividend * 1.117 3…

Q: Q47   Mixing Company manufactured 1,600 units of its only product during 2022. The inputs for this…

A: We will calculate the partial productivity by applying the formula. We will take the input used for…

Q: If the company was calculating its weighted average cost of capital(WACC),the proportion of…

A: WACC: It represents the average cost of capital for the company or a firm. It is estimated by the…

Q: low Oil issued 140,000 shares of stock last week, received $23.15 per share, and incurred direct…

A: Flotation costs are spent when a publicly traded corporation issues new securities.

Q: Please answer immediately.  A certain equipment has a first cost of P 12,000 and a salvage value of…

A: Sinking fund method is a method to provide a depreciation by considering a discount rate. This…

Q: Bagi company is private and wants to go public, before it go public thus joining the Ghana Stock…

A: Private Company  section- 2(68) AMMENDMENT ACT ,2015 A private company is a company having minimum…

Q: explain Small-firm Effect , Price/Earnings Effect, and January Effect These anomalies have…

A: CAPM-It  explains the relationship between the expected return, non-diversifiable risk and the…

Q: Calculate the monthly finance charge for the credit card transaction. Assume that it takes 10 days…

A: Given, Balance is $350 Rate is 18%

Q: Spherical Manufacturing recently spent $11 million to purchase some equipment used in the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: a.  ​Manhattan's native tribe sold Manhattan Island to Peter Minuit for ​$   24 in 1626. ​ Now,…

A: Time value of money (TVM) refers to the method used to measure the amount of money at different…

Q: What agencies regulate securities markets? How are start-up firms usually financed? Differentiate…

A: A business that is considering to issue equity by selling its shares to public will have to follow…

Q: stock is currently priced at 565 92 The company will pay a dividend of $2.88 next year and investors…

A: The cost of equity is calculated with the help of Gorden's Model as under  Ke = D1 ÷ P0  +  g D1 =…

Q: General Importers announced that it will pay a dividend of $2.00 per share one year from today.…

A: The current price of a stock is calculated by discounting all the future dividends at the present…

Q: A machine which costs P100, 000 when new has a lifetime of 15 years and a salvage value equal to 20%…

A: In the business sector, capital recovery has numerous different meanings. It is largely concerned…

Q: How to calculate the Profitability index?

A: Profitability Index: It is a measure used in capital budgeting of the project's or investment's…

Q: While Mary Corens was a student at the University of Tennessee, she borrowed $9,000 in student loans…

A: Present value of annuity is the current value of the future payments that are calculated using the…

Q: Awal Co. has a proposed project that will generate sales of 1419units annually at a selling price of…

A: Cash flows are the cash generated from the operation of the business organisation. In other words,…

Q: ) Preferred stock valuation Segwick Manufacturing has an outstanding preferred  stock issue with a…

A: The question is related to coat of capital. The dividend on preferred stock is calculated with the…

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.