CHAPTER 13 I
EQUIVALENT ANNUAL COSTS (“EAC”/“EANPV”)
The next problem we consider involves choosing among different possible systems or
eguigment with different lives.
We assume that: (1) the possibilities under consideration have diﬁ‘erent economic lives
ASSIGNMENT #1 (15 marks)
Name (Last, First):_
Student No.:_ Section:_
USE 4 DECIMAL PLACES (rounded) i.e., 1.2345% or .6789- for intermediate
calculations and round your final answer to two decimal places. For amounts involving
dollars and cents, use two
NOTICE FINAL EXAM
DATE: Monday, August 20th from 6:30 9:30
LOCATION: Henry Angus 098
WE WILL MEET IN Henry Angus 098 ON Sunday, August 19 FROM Noon-3 pm
(NOT 3-6 pm) FOR QUESTION/ANSWER SESSION. PLEASE BRING THE
FINAL QUESTIONS AND OTHER RELEVANT MATERIAL
ASSIGNMENT #1 (15 marks) Name (Last, First):
Student No.: Section:
USE 4 DECIMAL PLACES (rounded)- i.e., 1.2345% or .6789- for intermediate
calculations and round your final answer to two decimal places. For amounts involving
dollars and cents, use two de
Diploma In Accounting Program
BUSI 370: Business Finance Section 201
Assignment #3 Capital Budgeting Case Study
Chapter 13 Capital Budgeting, Risk Considerations, and Other Special Issues
Due date: March 14, 2016 11:59 pm Turnitin
Chapter 13 is an introdu
Busi 370 Midterm Stuff
The midterm exam is on Thursday, August 2 (6:30-8:45; 135
minutes) in HA 098.
Please arrive a few minutes early.
We will have a question and answer session from 12-3 pm
(NOT 3-6 pm) on Sunday, July 29th in HA 098. Bring your class
|j'| SAUDER
School of Business
Diploma In Accounting Program
Busi 370: Finance
Fall 2014 (Section 101: Wednesdays 6:30-9:30 in HA 345)
Instructor: Aziz Rajwani
Office: HA 351 [3 oor Classroom level not 3 oor Office levei]
Office Hours: Mondays, Wednesdays
BUSI 370 ASSIGNMENT #4
A company is considering building a new and improved production facility for one of its existing
products. It would be built on a piece of vacant land that the firm owns. This land was acquired
four years ago at a cost of $500,000;
3%: big CIcUiS't‘LD’X om Qmak -
CHAPTER 16 - LEASING tum. 21, am;
N W- act, Zntl
INVESTMENT DECISION: The firm has decided to acguire eguipment/machinery' based on NPV > 0_
FINANCING DECISION: Should the firm buy & borrow or lease the equipment/machinery.
Markers Comments
Question 4
Some students misinterpreted the given information. Market price of risk means Rm Rf,
which is 6%. Some students thought market price of risk means Rm only, which lead to
the wrong calculation. This mistake is often carried ov
Busi 370 Midterm Stuff
The midterm exam is on Friday, October 31st (6:30-9:30; 180 minutes) HA 098
(go downstairs after you enter the building). Please arrive a few minutes early.
The exam is approximately 2.5 hours, but you will be given 3 hours.
We wi
CHAPTER 13
CAPITAL BUDGETING AND RISK CONSIDERATION
INTRODUCTION
Investors and managers are generaily risk-averse. Forecasting errors associated with groiecting
future cash flows for capital budgeting projects are typically greater than 10%. Given the
com
Rig ijes‘cion 220 Famed jams Leases
tr GHAPTER 20 — COST OF
INTRODUCTION
Capital budgeting decisions require an accurate estimate of the required rate of return or cost of
capital.
BASIC CONCEPTS
There are two fundamental ways of looking at a firm: _
1. F
ASSIGNMENT #1 (15 marks)
ON AN EXAM, TIME MANAGEMENT IS VERY IMPORTANT. THUS, EXPLANATIONS, IF
ANY, SHOULD BE VERY SHORT. JUST SHOW YOUR WORK.
Question 1 (6 marks)
(a) (3 marks)
N
I/YR
PV
PMT
FV
30
82=4
300,000
= 17,349.03
The choices are to take $300,000
CHAPTER 19 8: “HANDOUT” [VISTA] November “VS, 2.312.
LONG-TERM DEBT (BONDS)
Debt is a CONTRACTUAL LlABiLlTY— i.e., interest MUST be paid. IF lNTEREST IS NOT
PAED THERE WILL BE “LEGAL CONSEQUENCES”. The actual bond contract is cailed an
indenture and it sp
i. CHAPTER 14 * ﬁrst
CASH FLOW ESTIMATION AND CAPITAL
BUDGETING DECISIONS
INTRODUCTION '
Capital budgeting deals with investments in projects that are expected to generate returns for more
than one year. This involves spending cash (investing in a project
ASSIGNMENT #2 (20 marks)
Name (Last, First):_
Student No.:_ Section:_
Take intermediate calculations to four decimal places (e.g., 1.2345%) and show your final
answer to two decimal places (e.g., $123.45 or 1.23%).
1. (a)
Suppose a 10 percent coupon, $1,0
ASSIGNMENT #3 (20 marks)
Name (Last, First):_
Student #:_ Section:_
Take intermediate calculations to four decimal places and show your final answer to
two decimal places.
1.
A portfolio consists of two stocks: (6 marks)
Stock
Expected Return
Standard Dev
ASSIGNMENT #2
Question 1
(a)
N
10 x 2 = 20
I/YR
= 3.5823
YTM = 3.5823% x 2 = 7.1646%
(b)
PV
1,200
PMT
1,000 x .1 x 1/2 = 50
FV
1,000
The yield MUST be expressed on an ANNUAL basis.
Since question uses the term effective yield, the investor truly wants to
BUSI 370 ASSIGNMENT #7
USE 4 DECIMAL PLACES (rounded) - i.e., 1.23% or .0123.
1.
The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower
Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a
new reta
BUSI 370 - REVIEW SESSION - TIME VALUE OF MONEY
Reviewglterest Rates
1. Interest rates are ALWAYS a hog/Jag . (unless indicated otherwise). ALL interest
rates are £5 UNLESS M" 544 g "2% {g g: H
OR . .
2. When convertin inter st rates from shorter/longer p
BUSI 370 ASSIGNMENT #6
Question 1 (4 marks)
You are evaluating two different pollution control devices:
(a) A filtration system which costs $1.1 million to install and $60,000 annually to operate. It
would have to be replaced every five years.
(b) A preci
BUSI 370 ASSIGNMENT #5
Question 1
A company has two projects to choose from with the following annual after-tax cash flows:
Project A
Investment (today)
Investment (Year 1)
Years 28
$700,000
$400,000
$600,000
Project B
Investment (today) $1,600,000
Years
ASSIGNMENT #3 (20 marks)
Name (Last, First):_
Student #:_ Section:_
Take intermediate calculations to four decimal places and show your final answer to
two decimal places.
1.
A portfolio consists of two stocks: (6 marks)
Stock
Expected Return
Standard Dev
Chapter 6 &6A: Bond Valuation and Interest Rates & Interest Rate Parity
Multiple Choice Questions
1. Which of the following statements concerning bonds is incorrect?
A. They involve blended payments of principal and interest.
B. They have a fixed maturity
BUSI 370 ASSIGNMENT #7
USE 4 DECIMAL PLACES (rounded) - i.e., 1.23% or .0123.
1.
The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower
Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a
new reta
ASSIGNMENT #2 (23 marks)
Name (Last, First):_
Student No.:_ Section:_
Take intermediate calculations to four decimal places (e.g., 1.2345%) and show your final
answer to two decimal places (e.g., $123.45 or 1.23%).
1. (a)
Suppose a 10 percent coupon, $1,0
BUSI 370 ASSIGNMENT #7
USE 4 DECIMAL PLACES (rounded) - i.e., 1.23% or .0123.
1.
The ABCEasyAs123 Corporation has numerous retail clothing stores in the Lower
Mainland. Its tax rate is 40 percent. ABC is going to expand its business by building a
new reta