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Ans $ 16,222
| Annuity PV Factor (End of Year) = | P [ 1 - ( 1 + r )-n ] |
| r | |
| 2000* ( 1 - ((1 / (1 + 4%)^10))) | |
| 4% | |
| 648.8716623 | |
| 0.04 | |
| 16222 |
Show work and answer correctly for thumbs up! What is the present value of a $2000,...
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You use an Annuity Due approach to investing in your retirement. For the next 40 years, you invest $8500 per year into your retirement account where you will receive an 8% annual return. How much will you have in 40 years? (round to the nearest dollar) It depends on your Beta 2,201,980 2,378,139 340,000
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Set this up carefully. You found a 2009 Toyota 4-Runner on sale for $22,311. The dealership says it will finance the entire amount with a one year loan. You will need to make monthly payments of $1,924. What is the ANNUALIZED interest rate on this loan. 8.6% O.97% 0.53% 6.37%
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For an initial investment of $10,000, you are offered the opportunity to receive $4,000 at the end of the year for the next 10 years. What is the irr of this opportunity? $16,840 o need to know the cost of capital O 38.45% O 8%
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Set this up carefully. You found a 2009 Toyota 4-Runner on sale for $22,311. The dealership says it will finance the entire amount with a one year loan. You will need to make monthly payments of $1,924. What is the ANNUALIZED interest rate on this loan. 8.6% .97% 53% 6.37%
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The required return on retained earnings is 13%. The risk free rate is 2% and the Market Return is 9.5%. What is the company's beta? (hint: consider the CAPM) 0.47 O Cannot tell O 1.47 1.73
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What is the WACC of a company with the following capitalization. The company is in the 33% tax bracket, and floatation costs add 1.2% from the firm's perspective. Allocation Market Cost/ Expected Return Debt 5.5% 0.3 0.4 9.4% Retained Earnings Common Stock (new issue) 10.6% O 7.69% 08.05% O Not enough information
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Which of the following companies has the lowest after tax cost of debt. Company Market Cost of Debt Tax Bracket 10% 0.35 9% 0.2 12% 0.28 OB O A and B oc Ο Α
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Which of the following project assessment methods would be best for evaluating the liquidity of a project? O MIRR O payback method ONPV O IRR
I’ll give thumbs up right away! DONT HAVE TO SHOW WORK 1) if you invest 2000 each year for 40 years, how much will you have at the end of 40 years assuming 9% annual return? 2) if you want to withdraw 35000 each year for 30 years, how much would you need to have saved today to fund these withdrawals? 3) if you purchase a machine and borrow 10000, what will your approximate monthly payment be if you pay...
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NPV ensures that: we generate cash the most efficiently for our investors O we choose the greatest wealth creating opportunity for our investors Owe minimize the time to get wealthy for our investors o we choose the lowest risk opportunity for our investors