Use the financial formulas and internal rate of return

Assignment Help Financial Management
Reference no: EM131050400

Healthcare Administrator makes $100,000 per year, borrowed $25000 from lenders to pay for Master's Program at 5.84%. the payback time that the school is giving is 20years but I plan on pay the $25000 back within 6years. Determine how much compensation (return) you expect to earn and how long will it take to pay back the return on this investment. Use the financial formulas, Internal Rate of Return (IRR), and Payback. show how you got the answer.

Reference no: EM131050400

Questions Cloud

Find the amount of payment per period : assuming the payment per period is the same for all periods.
Comparing the mean education levels of recent immigrant : A researcher is interested in comparing the mean education levels of recent immigrant groups by origin country. She is particularly interested in comparing the mean education levels of immigrants from China, Ecuador, Mexico, and Vietnam. What wo..
Developed the following demand forecast for the pitbull : Mutts Amazing Dogs has developed the following demand forecast for The Pitbull, a spicy concoction graced by pepper jack cheese, serrano, habanero, poblano and jalapeno peppers, onion, and a cilantro-lime aioli.
Explain the reasoning and value behind the control choice : Identify which aspect or metric of the goal they're controlling. Explain the reasoning and value behind the control choice. Identify the control as feed forward, concurrent, or feedback.
Use the financial formulas and internal rate of return : Healthcare Administrator makes $100,000 per year, borrowed $25000 from lenders to pay for Master's Program at 5.84%. the payback time that the school is giving is 20years but I plan on pay the $25000 back within 6years. Determine how much compensatio..
What is the level of significance : a) What is the level of significance? b) What is the value of the sample test statistic? c) Find (or estimate) the P-value.
Reduction in the price of the equipment : XYZ Hospital has two options in how to purchase some EDP equipment with a list price of $5m. Option one is a 15% reduction in the price of the equipment but the hospital has to pay the full amount at the time of purchase. What if the opportunity cost..
Make a sketch of the density function : Let X and Y be independent, uniformly distributed random variables on U(0,1). Define Z = X/(X-Y) . Find the cumulative distribution function and the probability density function of Z. Make a sketch of the density function.
Considering purchasing is generating gross rents : Suppose a 15,000 SF building you are considering purchasing is generating gross rents of $300,000 per year with no expense reimbursement. Operating expenses are $100,000 per year and vacancy loss is 5% of gross rent.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the intrinsic value of the stock

Apple currently produces annual free cash flow of 40 billion a year. The company has long-term debt of $18 billion and Cash and Marketable Securities of $150 billion. What is the intrinsic value of the stock given this new information? Comment on you..

  About the lender receive

Consider a 20-year, $105,000 mortgage with a 5.70 percent interest rate. After nine years, the borrower (the mortgage issuer) pays it off. How much will the lender receive?

  Investment policy and present value

The Maybe Pay Life Insurance Co. is trying to sell you an investment policy that will pay you and your heirs $33,000 per year forever. If the required return on this investment is 5.8 percent, how much will you pay for the policy?

  Calculating a bid price

Consider a project to supply 103 million postage stamps per year to the U.S. Postal Service for the next five years. You have an idle parcel of land available that cost $1,930,000 five years ago; if the land were sold today, it would net you $2,130,0..

  Adding robotic paint sprayer to its production line

The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $900,000, and it would cost another $22,000 to install it. The machine falls into the MACRS 3-year class, and it would be sold afte..

  What did these bonds sell for when they were issued

Seven years ago XYZ International issued some 31-year zero-coupon bonds that were priced with a market's required yield to maturity of 12 percent and a par value of $1,000. What did these bonds sell for when they were issued?

  Perpetuity with a coupon payment

What price would investors be willing to pay for a perpetuity with a coupon payment of $20,000 per year if interest rates were 5%? What if interest rates were 2%? Please show your work.

  Evaluating the possible replacement of equipment

A company is evaluating the possible replacement of equipment. New equipment would cost $106,975, and sales tax on the purchase would be 3%. Both the purchase price and sales tax would be capitalized. The old equipment had an original purchase price ..

  What is the effective rate on the bank loan

Neveready Flashlights Inc. needs $340,000 to take a cash discount of 3/17, net 72. A banker will loan the money for 55 days at an interest cost of $10,400. What is the effective rate on the bank loan?  If the banker requires a 20 percent compensating..

  What is the initial weighted average cost of capital

Marginal cost of capital (LO5) The McGee Corporation finds it is necessary to determine its marginal cost of capital. McGee’s current capital structure calls for 40 percent debt, 5 percent preferred stock, and 55 percent common equity. What is the in..

  Calculate the npv of this investment

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.00 million. This investment will consist of $2.00 million for land and $10.00 million for trucks..

  A project will produce an operating cash flow

A project will produce an operating cash flow of $31,200 a year for 7 years. The initial fixed asset investment in the project will be $204,900. The net after tax salvage value is estimated at $62,000 and will be received during the last year of the ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd