Discussion 6

Discussion 6 - ISE460 Fall2010 Discussion5...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style  12/1/10 ISE 460  Fall 2010 Discussion 5
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
 12/1/10 A) A company provides the following financial data: Cash and  marketable securities, $150; total fixed assets, $250; annual sales,  $1,000; net income, $300; inventory, $200; current liabilities, $140;  average common equity, $550. Determine the firm’s “return on  (common) equity”. Midterm 1 – Problem 1
Background image of page 2
 12/1/10 B) You get a loan of $400,000 at 12% fixed APR, paid monthly for  30 years. How much principal do you owe after the end of 2 years? Midterm 1 – Problem 1
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
C) Two years back you invested $100K in a project that would take  5 years to complete. At the end of those 5 years (3 years from now)  you would then gain $300K. However, a problem occurred with the  project, causing it to stall. You will need to add $50K to fix the  problem and allow the project to complete. What is the NPW of your  decision to fix the problem? Assume i = 10%. Midterm 1 – Problem 1
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 12

Discussion 6 - ISE460 Fall2010 Discussion5...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online