7. Spence Company is considering a project that has the following cash flow. What is the project's IRR? Note that a project's IRR can be less than the cost of capital or negative, in both cases it will be rejected. Year Cash Flows 1050 400 400 400 400 A.14.05% В. 15.61% C. 17.34% D. 19.27% 01234

Q: Abby also has a $400/month car loan payment and a $150/month student loan payment. If her lender req...

A: Annual gross income can be found by multiplying the value of the total monthly payment by the debt t...

Q: A company purchase a piece of manutacturing equipment for rental purposes. The expected annual incom...

A: The current value of a projected amount of money or stream of cash flows with a predetermined rate o...

Q: Consider the following four debt securities, which are identical in every characteristic except as n...

A: Interest rate or YTM of a bond Yield to maturity (YTM) of a bond is the total anticipated return on ...

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He...

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...

Q: If you invest sh.100,000 at an interest rate of 15 percent, how much will you have at the end of eig...

A: Note: Hi! Thank you for the question, As per the Honor Code, we are allowed to answer one question i...

Q: Jinchuriki Inc.'s Financial Statement for years 2014-2015. Compute of the Average Sales Period/ Aver...

A: Ratios are calculated to determine the financial position of the company so that it would be easy to...

Q: Step 2 Calculation and Conclusion NAL =Cost of equipment - OCF*(PVIFA@5.12%,4 Years)   =6300000 - 16...

A: Given: Operating cash flows = 1,683,800 Interest rate = 5.12% Years = 4

Q: Car loan Planning to give his son a car as a gift when he graduates from college 2 years from now, A...

A: Present Value:  The present value is the value of cash flow stream or the fixed lump sum amount at t...

Q: . What is the net present value $ of project A? 2. what is the profitability index for project A? ...

A: Net Present Value: It represents a measure of the profitability of a project or investment in dolla...

Q: What is the role of the Finance Manager of a company? What is their biggest value to a company? How ...

A: One of the most significant and difficult operations of a corporation is its financial activity. As ...

Q: A fund is to provide an annual scholarship at P4,000.00 for the first 5 years; P6,000.00 for the nex...

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one...

Q: What is the importance of recording business transaction?

A: Business Transactions are the transactions carried out in the business in the financial year. It inc...

Q: Based on the table below, you invested 40% on Stock A and B and 20% on Stock Calculate the expected ...

A: Expected return The expected return refers to the profit or loss that is anticipated by an investor ...

Q: Find the mean of Terry's stock, giving the following information? Year Return 2011 22% 2012 -8% 2013...

A: Here, To Find: Mean =?

Q: Neverland Company, a retailer, plans to sell 15,000 units of Product X during the month of August. I...

A: Sales = 15000 units Opening stock = 2500 units Closing units = 2000 units

Q: What is the covariance of returns between stocks A and B? Year Retum A Retum B 2017 60% 35% 2016 20%...

A: Here, To Find: Covariance =?

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Initial Investment is $100million Net Working Capital is $20 million out of $100million Cost of mach...

Q: Big Industries has the following market-value balance sheet. The stock currently sells for $20 a sha...

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first t...

Q: According to the promissory note below, answer the following questions (Refer to the pic attached) ...

A: Maker is the person who is supposed to pay the amount and Payee is the person to whom amount is to b...

Q: Mr. Kinders has contributed $116.00 at the end of each month into an RRSP paying 6% per annum compou...

A: Monthly contribution (P) = $116.00 Interest rate = 6% Monthly interest rate (r) = [[1+(0.06/4)]4]1/1...

Q: January February March 15,000 Sales in units.. 20,000 18,000 Production in units.. 18,000 19,000 16,...

A: This pertains to production budget in finance. We often make different types of budget in finance an...

Q: 1. The New York Stock Exchange is primarily a. A secondary market. b. An organized auction market. c...

A: A secondary market is a market where shares of company are traded among the sellers and prospective ...

Q: 4) An n-year loan involves payments of $800 at the end of each month. The interest rate is 12% conve...

A: Here, Monthly Payment is $800 Interest Rate is 12% Compounding Period is Monthly i.e. 12 Interest on...

Q: Everest Inc's preferred stock pays a dividend of $1.40 per quarter, and it sells the preferred stock...

A: SOLUTION : GIVEN, Everest incs preferred stock price = $27.15 per share Dividend per quarter = $1.40...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...

Q: Mr. Cruz agreed to settle a debt by making 12 quarterly payments of P 450 each. If he failed to make...

A: Quarterly payment (Q) = P 450 n = 12 payments r = 8% per annum = 2% per quarter Let X = Debt amount

Q: Assume that Riverside Corp. from the United States will receive 400,000 pounds in 180 days. The foll...

A: Solution : Money Market Hedge is that technique which provide the protection against loss which aris...

Q: As the number of securities in a portfolio is increased, what happens to the average portfolio stand...

A: Standard Deviation: It is a statistical measure of dispersion and measures the dispersion in the da...

Q: If money is worth 5% compounded semi-annually, find the present value of a  sequence of 12 semi-annu...

A: The present value of annuity needs to be calculated at the end of 4th year. Post that, the present v...

Q: Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over t...

A: Dividend after 10 years (D10) = $11 Growth rate (g) = 4% Required return (r) = 12% Period without di...

Q: the bank's excess reserves if the legal he

A: Excess reserves refer to the amount which is excess by the regulators, creditors, and internal contr...

Q: distributed cash dividends of $0.60 and capital gains of $1.40 per share. If the net asset value of ...

A: Return on Investment: It is a measure of performance applied to evaluate the profitability of an in...

Q: 3. Robbins Inc. is considering a project that has the following cash flows and cost capital (r) data...

A: Net present value is the sum of the present values of net of all future cash outflows and inflows di...

Q: A sum of Rs 390200 is to be paid back stalments. How much is each instalment arged is 4% per annum c...

A: The loans are paid by equal annual installments that carry the payment of interest and the payment o...

Q: Bob White argues that if his wage went up from $10/hour to $20/hour he would still be able to pay re...

A: Since you have posted a question with multiple questions, we will solve the first question for you. ...

Q: Blossom Manufacturing Company has been growing at a rate of 6 percent for the past two years, and th...

A: Data given:: Growth rate (g)= 6% D0= $1.50 Expected dividend (D1) = $1.50 * (1+6%) Required rate of ...

Q: future value of the bond (the amount the bond pays in one year) is

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: How much less is a perpetuity of $2,000 worth than an annuity due of the same amount for 30 payments...

A: An annuity is a series of monetary payments. A perpetuity is a sort of annuity that lasts indefinite...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Since you have posted a question with more than three sub-parts, we will solve the first three sub-p...

Q: You are planning to accumulate P2.5M in your personal savings account by the time you retires at 60....

A: Each year deposit earn the some portion of interest and it is compounded annually. 

Q: buy a new house soon he’s considering two mortgage options. 15 year mortgage with a APR 2.75% or a 3...

A: The mortgages are paid by the monthly payment that carry the payment of interest and payment of the ...

Q: ery month. What is the APR?

A: APR is annual percentage rate of credit card which is charged based on monthly basis interest rate.

Q: What perpetual amount will you receive annually starting next year if you were  able to deposit 130,...

A: Here, Amount Deposited five years ago is 130,000 Interest Rate is 10.5% Compounding Period is Annual...

Q: It is April, and Hans Anderson is planting his barley crop near Plunkett, Saskatchewan. He is concer...

A: In the given question we are given with the particulars about a barley crop of Hans Anderson.  Given...

Q: How do gross profits, operating income, and net income differ

A: In finance when making or analyzing an income statement we look into different types of income or pr...

Q: a. Expected PW of Alt. 1 b. Expected PW of Alt. 2 c. The preferred alternative: Type either 'Alt. 1'...

A: Expected PW is the PW that will most likely materialize given the different situations for an altern...

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 pe...

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over ...

Q: Evan and Emmanuel want to buy a $250,000 home. They plan to pay 15% as a down payment, and take out ...

A: Cost of House is $250,000 Down payment is 15% Term of loan is 30 years Interest rate is 4.9% To Find...

Q: re in 20 years. She opens up a retirement account with an APR of 5.25% compounded monthly. She will ...

A: There is need of proper planning for the retirement and if there is proper planning on time better p...

Q: How do you value a business

A: In the world of finance, we often see that a business is being valued. The valuation might be done f...