Reference no: EM135412
Q1. Mr. Davidson plans to purchase a new house in October 2013. The sale price of the house is $436,000. He plans to pay 20% down payments as well as borrow additional 80% from Bank of America with a 15-year, 3.875% fixed-rate mortgage loan. He is anticipated to pay an equal MONTHLY payment which is starting from November 2013 for 15 years.
(1) Compute the required monthly mortgage payment for Mr. Davidson.
(2) Make the 2013 - 2015 amortization table (26 months) for Mr. Davidson.
(3) Mr. Davidson must make his 2013 tax filings in early 2014. Please evaluate the total mortgage interest payments that he can use for his 2013 tax deductions.
Q2. The MS Energy Corp. is planning a new investment project which is anticipated to yield cash inflows of $185,000 per year in Years 1 through 2, $220,000 per year in Years 3 through 6, and $198,000 in Years 7 through 9. This investment will cost company $790,000 today (initial outlay). We suppose that the firm's cost of capital is 6.8%.
(1) Draw a time line to show the cash flows of project.
(2) Evaluate the project's payback period, profitability index (PI), net present value (NPV), and internal rate of return (IRR).
(3) Discuss whether the project must be taken.
|
Prepare a marginal cost analysed income statement for 2014
: Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.
|
|
Estimate the companys weights of capital
: Estimate the companys weights of capital and estimate the companys before-tax and after-tax component cost of debt.
|
|
Explain in brief the actions the ecb
: Suppose European Central Bank uses open market operations to undertake this change. Explain in brief the actions the ECB must do in the open market in order to pull this off
|
|
Internet technologies and robotics
: how the combination of Internet technologies and Robotics will displace jobs in the next ten years.
|
|
Evaluate the project payback period and profitability index
: Draw a time line to show the cash flows of project. Evaluate the projects payback period, profitability index net present value and internal rate of return
|
|
Indicate if gdp is affected
: Indicate if GDP is affected, under what category and what happens to GDP Oklahoma cleans up after a devastating tornado.
|
|
Given the demand and cost conditions
: Given the demand and cost conditions, what price, output and profits result in the short run? What will happen as the firm moves from the short to the long run
|
|
Explain the short-run phillips curve
: Explain how the short-run Phillips curve, the long-run Phillips curve, the short-run aggregate supply curve, the long-run aggregate supply curve, and the natural rate hypothesis are all related.
|
|
Do protectionist policies benefit producers
: Do protectionist policies benefit producers, consumers, workers, or the government
|