Calculate the total deposits of the sinking fund

Assignment Help Financial Econometrics
Reference no: EM13328975

What is the semiannual payment to finance $200,000 in a sinking fund that pays 12% annual interest? Also, calculate the total deposits of the sinking fund and the interest earned by the semiannual payment.

A project proposal stated that it would provide at least $20,000 in annual returns for the next 3 years but requires an initial investment of $50,000. Will its approval be northwhile if the cost of capital is 8%?

Find the net present value for a project that would yield $25,000, $35,000, $30,000, and $40,000 in the first 4 years of operation if the interest rate is 9.5% and the initial investment is $80,000.

Reference no: EM13328975

Questions Cloud

Determine what is the most the firm can pay for the project : A firm is considering a project that will generate perpetual after-tax cash flows of $22,500 per year beginning next year. The project has the same risk as the firm's overall operations and must be financed externally.
At what time will the dog reach the bone : A merry-go-round is stationary. A dog is running on the ground just outside its circumference, moving with a constant angular speed of 0.775 rad/s. At what time will the dog reach the bone
What is the decryption function : a). What is the decryption function, b). What is the decrypted plaintext? c). What are some weaknesses of this cipher?
How to generate the same hash value : A 1,024-bit message is used to generate a 24-bit hash. On the average, how many other messages could be expected to generate the same hash value? What is the probability that two massages that generate the same 24-bit hash?
Calculate the total deposits of the sinking fund : What is the semiannual payment to finance $200,000 in a sinking fund that pays 12% annual interest. Also, calculate the total deposits of the sinking fund and the interest earned by the semiannual payment.
Calculate the work done on the cart : A cart for hauling ore out of a gold mine has a mass of 447 kg, including its load. Calculate the work done on the cart during the process by friction
What would the price be if the company expected a volume : A company has a total cost of $40.00 per unit at a volume of 120,000 units. The variable cost per unit is $25.00. What would the price be if the company expected a volume of 110,000 units and used a markup of 50%
Have to be before he would spend a dollar buying a first cup : Suppose that Omar’s marginal utility for cups of coffee is constant at 1.5 utils per cup no matter how many cups he drinks. On the other hand, his marginal utility per doughnut is 10 for the first doughnut he eats
What is the speed of the target body : A projectile of mass 2.06 kg approaches a stationary target body at 7.70 m/s. What is the speed of the target body

Reviews

Write a Review

Financial Econometrics Questions & Answers

  What will be the effect of the price increase on firms fcf

Chip's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 83 percent as high if the price is raised 9 percent.

  What amount of money sarah will have to invest today is

If Sarah can earn 7 percent annually for the next 26 years, the amount of money she will have to invest today is. If Sarah earned an annual return of 17 percent, how soon could she then retire.

  How much would have to put away each year to reach goal

How much would you have to put away each year to reach your goal, assuming you're starting from zero now and you earn 5% annual interest on your investment

  Find what are the number of copies sold in three years

Your finance text book sold 47,000 copies in its first year. The publishing company expects the sales to grow at a rate of 19.0 percent for the next three years, and by 6.0 percent in the fourth year.

  Prepare a capital budget for the items to be acquired

The expected lifetime of the various capital items is 10 years for the garbage trucks, 8 years for the bulldozer, 5 years for the lawn mowers, and 40 years for the activity center.

  How much money do need to buy 300 shares of time

At your brokerage firm, it costs $9.50 per stock trade. How much money do you need to buy 300 shares of time Warner, Inc. (TWX) which trades at $22.62

  How to prepare a multiple-step income statement for 2013

sales revenue, $2,105; cost of goods sold, $1,250; selling expenses, $120; general and administrative expenses, $110; interest expense, $35; and gain on sale of investments, $50. Income tax expense has not yet been accrued.

  What would the price be if the company expected a volume

A company has a total cost of $40.00 per unit at a volume of 120,000 units. The variable cost per unit is $25.00. What would the price be if the company expected a volume of 110,000 units and used a markup of 50%

  Describe how the economy is performing on investment

Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing.

  Determine what is the value of the long-term debt

Donner United has total owners' equity of $18,800. The firm has current assets of $23,100, current liabilities of $12,200, and total assets of $36,400. What is the value of the long-term debt

  Describe how to analyze the scenario of mfs

Analyze the following scenario: The Unified Path is an umbrella organization that solicits donations to support its many charitable suborganizations. One of these is the Millbridge Family Service (MFS).

  Find what value would be assigned the existing roof

A new roof would last 20 years, but would cost $20,000. The house is expected to last forever. Assuming the costs will remain constant and that the interest rate is 5% what value would you assign the existing roof

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