### Calculate the present value of the savings

Assignment Help Financial Management
##### Reference no: EM131347928

A business is considering purchasing a machine that is projected to yield cash, savings of \$1,000 per year over a 10-year period. Using a 12 percent discount rate, calculate the present value of the savings. (Assume that the cash savings occur at the end of each year).

#### What is the firms sustainable growth rate

Plank's plants had net income of \$10,000 on sales of \$40,000 last year. the firm paid a dividend of \$2,300. total assets were \$ 700,000 of which \$350,000 was financed by debt.

#### Compute the cost of capital for the firm

Compute the cost of capital for the firm for the following: A bond that has a \$1,000 par value (face value) and a contract or coupon interest rate of 10.2 percent. Interest pa

#### Setup cost for the production process

The Handy Manufacturing Company manufactures small air conditioner compressors. The estimated demand for the year is 15,000 units. The setup cost for the production process is

#### What is the equipments after-tax salvage value

Kasper Film Co. is selling off some old equipment it no longer needs because its associated project has come to an end. The equipment originally cost \$22,500, of which 80% has

#### The price of the call option and price of the put option

Aloha Beach Bum specialises in beachwear. Its current stock price is \$28. There is a liquid market for Aloha’s options and both calls and puts are available for trading. The c

#### Calculate the future value of this ordinary annuity

You decide to begin saving towards the purchase of a new car in 5 years. If you put \$1,000 at the end of each of the next 5 years in a savings account paying 6% compounded ann

#### From the perspective of the efficient markets hypothesis

Suppose that research shows that by buying stocks issued by companies whose names begin with the letter G investors can earn above-normal returns in even-numbered years. From

#### Considering two financial plans for the coming year

Quigley Inc. is considering two financial plans for the coming year. Management expects sales to be \$300,000, operating costs to be \$265,000, assets to be \$200,000, and its ta