F1515
QUIZ 1 PART 2
ANSWER :1 (a) pay $1120 at end of the year r = (1 + i/n)^n I = 0.12 n=1 r = (1 + (0.12/1)^1 - 1 = 12% By 1.73% EFF is higher in friends proposal (b) sticker price = $ 15000 down payment =$2000 due amount = $ 13000 nominal annual
F1515
QUIZ 1 PART 2
ANSWER :1 (a) pay $1120 at end of the year r = (1 + i/n)^n I = 0.12 n=1 r = (1 + (0.12/1)^1 - 1 = 12% By 1.73% EFF is higher in friends proposal (b) sticker price = $ 15000 down payment =$2000 due amount = $ 13000 nominal annual
2-10 a. $500(1.06)10 = $895.42 b. $500(1.12)10 = $1,552.92. c. $500(1/1.06)10 = $279.20 d. $500(1/1.12)10 = $160.99 3-4 EBITDA DA EBIT Int EBT $7,500,000 2,500,000 $5,000,000 2,000,000 $3,000,000
Taxes (40%) 1,200,000 NI $1,800,000
5-4
r = r* + IP
FI515 Quiz 2 Part 2 1 IRR for Machine A: CF1= -2,000; CF2=0; CF3=0, DF4= 3,877, so IRR will be 17.9958% IRR for machine B: CF1= 832; CF2=832; CF3=832, DF4= 832, so IRR will be 24.0099% Machine B will better because it has greater IRR. 2 Year: Cost In
Chapter 3. Solution for Ch 03-14 Build a Model
Here are the balance sheets as given in the problem: Cumberland Industries December 31 Balance Sheets (in thousands of dollars) 2007 Assets Cash and cash equivalents Short-term investments Accounts Recei
Chapter14. Solution for Ch 14-10 Build a Model Cumberland Industries' financial planners must forecast the company's financial results for the coming year. The forecast for many items will be based on sales, and any additional funds needed will be ob
Chapter 11. Solution for Chapter 11 P23 Build a Model
Gardial Fisheries is considering two mutually exclusive investments. The projects' expected net cash flows are as follows: Expected net cash flows Project A Project B ($375) ($575) ($300) $190 ($2
Chapter 6. Solution to Ch 06 P14 Build a Model a. Use the data given to calculate annual returns for Bartman, Reynolds, and the Market Index, and then calculate average returns over the five-year period. (Hint: Remember, returns are calculated by sub
6/26/2006 Chapter 5. Solution to Ch 05 P24 Build a Model
Rework Problem 5-12 using a spreadsheet. After completing questions a through d, answer the new question. A 10-year 12 percent semiannual coupon bond, with a par value of $1,000, may be called
Chapter 4. Solution to Ch 4-15 Build a Model Cumberland Industries' December 31 Balance Sheets (in thousands of dollars) Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories Total current assets Net fixed assets Tot