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Thorley Inc. is considering a project that has the following cash flow data. What is the project's IRR? Note that a project's projected IRR can be less than the WACCor negative, in both cases it will be rejected.Year 0 1 2 3 4 5Cash flows -$1,250 $325 $325 $325 $325 $325a. 9.43%b. 9.91%c. 10.40%d. 10.92%e. 11.47%
If you put up 34,000 today in exchange for a 7.65 percent, 15-year annuity, what will the annual cash flow be?
An investment offers 5,300 per year for 15 years, with the first payment occuring one year from now. if the required return is 7 percent, what is the value of theinvestment? what would the value be if the payments occured for 40 years? for 75 years? forever?
What is the future value of 2,100 in 17 years assuming an interest rate of 8.4 percent compounded semiannually?
Suppose a five-year, $1,000 bond with annual coupons has a price of $900.77 and a yield to maturity of 6.4%. What is the bond's coupon rate? The bond's coupon rate is __% (Round to three decimal places.)
Carey Company is borrowing $200,000 for one year at 12 percent from Second National Bank. The bank requires a 20 percent compensating balance. a. What is the annual rate of interest? (Use 365 days a year.) Annual rate of interest % b. What would the annual rate be if Carey were required to make 12 equal monthly payments to retire the loan? (Use 365 days a year. Round the final answer to 2 decimal...
Assume that the price of real estate is determined by P=PV(all cash flows generated by thereal estate). After you have graduated you work for some years and can save some money.You decide to invest in a house which you want to rent out for a rate of 12,000 pound permonth. Assume that the rental rate will increase with 1.2% per year (which is 0.1% permonth). (For the sake of simplicity, also assume that there are no further costs involved e.g.renovating...
Ace Mining Tools Ltd. of Calgary makes specialty tools used in the mining industry. The company uses an ABC system for internal decision making. The company has four activity cost pools, as listed below: Activity Cost PoolActivity MeasureActivity Rate Order size Number of direct labour-hours$17.60 per direct labour-hour Customer orders Number of customer orders$360.00 per customer order Product testing Number of testing hours$79.00 per testing hour Selling Number of sales calls$750.00 per sales call The managing director of the company would like information concerning the cost of a recently completed order for hard-rock drills....
ABC Ltd. has decided to raise capital via a rights issue. The share price is currently K5.50 and ABC intends to raise K5m. There are currently 6.25m shares in issue and ABC is offering a 1 for 5 rights issue. Calculate the Ex-Rights Price.