Log in
Finance
5
answers
12
watching
6,055
views
26 Jan 2018

Question 1. Critically evaluate various approaches to the financial management. (Points 2)

Question 2. What are the differences between fund flow and cash flow? (Points 2)

Question 3. (a) What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 7%? If interest rates in general were to double and the appropriate discount rate rose to 14%, what would happen to the present value of the perpetuity? (Points 2)

(b) Your company is planning to borrow $1 million on a 5-year, 15%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? (Points 2)

Watch
5
answers
12
watching
6,055
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Avatar image
Avatar image
Liked by sitiaril52 and 1 others
Irving Heathcote
Irving HeathcoteLv2
28 Jan 2018

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Avatar image
Read by 1 person
Already have an account? Log in
Share
Avatar image
Read by 1 person
Already have an account? Log in
Share
Avatar image
Read by 3 people
Already have an account? Log in
Share
Avatar image
Read by 3 people
Already have an account? Log in
Share

Related questions

Your company is planning to borrow $1.5 million on a 7-year, 8%, annual payment, fully amortized term loan. What fraction of the payment made at the end of the second year will represent repayment of principal? Round your answer to two decimal places.

)Washington-Pacific (W-P) invests $3 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 8 years, at which time W-P plans to sell the forest at an expected price of $6 million. What is W-P's expected rate of return? Round your answer to two decimal places. %

A mortgage company offers to lend you $85,000; the loan calls for payments of $8,964.13 at the end of each year for 30 years. What interest rate is the mortgage company charging you? Round your answer to two decimal places.

You need to accumulate $10,000. To do so, you plan to make deposits of $1,650 per year - with the first payment being made a year from today - into a bank account that pays 10.18% annual interest. Your last deposit will be less than $1,650 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Round your answer up to the nearest whole number.
year(s)

How large will the last deposit be? Round your answer to the nearest cent.
$

Present Value of a Perpetuity

What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 4.22%? Round your answer to the nearest cent.
$

If interest rates in general were to double and the appropriate discount rate rose to 8.44%, what would its present value be? Round your answer to the nearest cent.
$

)Washington-Pacific (W-P) invests $3 million to buy a tract of land and plant some young pine trees. The trees can be harvested in 8 years, at which time W-P plans to sell the forest at an expected price of $6 million. What is W-P's expected rate of return? Round your answer to two decimal places. %

A mortgage company offers to lend you $85,000; the loan calls for payments of $8,964.13 at the end of each year for 30 years. What interest rate is the mortgage company charging you? Round your answer to two decimal places.

You need to accumulate $10,000. To do so, you plan to make deposits of $1,650 per year - with the first payment being made a year from today - into a bank account that pays 10.18% annual interest. Your last deposit will be less than $1,650 if less is needed to round out to $10,000. How many years will it take you to reach your $10,000 goal? Round your answer up to the nearest whole number.
year(s)

How large will the last deposit be? Round your answer to the nearest cent.
$

Present Value of a Perpetuity

What is the present value of a perpetuity of $100 per year if the appropriate discount rate is 4.22%? Round your answer to the nearest cent.
$

If interest rates in general were to double and the appropriate discount rate rose to 8.44%, what would its present value be? Round your answer to the nearest cent.
$

Related Documents

FIN 351 Lecture Notes - Lecture 2: Net Present Value, Microsoft Powerpoint, Decision Rule
jadecamel246
FIN-3403 Lecture Notes - Lecture 14: Dividend Discount Model, Dividend Yield, Tax Rate
violethippopotamus705
FIN 300 Lecture Notes - Lecture 5: Liquid Oxygen, Discount Window, Compound Interest
mauvehound402

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in