Determine the playback and irr-npv

Assignment Help Financial Management
Reference no: EM13806013

A college student spends $12,000 (end of the year) in year 1, 15,000 in year 2, 16,000 in year 3, and 18,000 in year 4 in order to acquire a college degree. The increase in potential salary (compared to a high school graduate) is expected to be 500 a year for the first 5 years after graduation. 10,000 a year for the next 10 years and then 30,000 a year for the remainder 20 years before retirement. If the high school graduate could earn 24,000 a year while the student was in college, determine the playback, IRR, NPV of going to college.

Reference no: EM13806013

Questions Cloud

What is one takeaway you had in regards to home partnerships : what is one "takeaway" you had in regards to home and school partnerships? How will this information help you build strong home and school partnerships with the parents of your students?
Other situations involving voidable contracts : Laura removes the airbags from a used car, and then offers to sell the car to David without disclosing the removal. David agrees to purchase the used car without asking any questions about the airbags or investigating whether they are present. Upon d..
Where as today most personal computer software is purchased : Why do you think that so much of the software that ran on large-scale computers was custom written by programmers, where as today most personal computer software is purchased off the shelf
Significant challenge associated with collecting evidence : What do you think is the most significant challenge associated with collecting and using evidence with class characteristics in court. Explain.
Determine the playback and irr-npv : A college student spends $12,000 (end of the year) in year 1, 15,000 in year 2, 16,000 in year 3, and 18,000 in year 4 in order to acquire a college degree. The increase in potential salary (compared to a high school graduate) is expected to be 500 a..
The difference between the two population means : What is the point estimate of the difference between the population mean expenditure for males and the population means expenditure for females ?
Leading organization change : Leading Organization Change
Total real return on investment : You bought one of Great White Shark Repellant Cos 6.6 percent coupon bonds one year ago for $1,056. These bonds make annual payments and mature 11 years from now. Suppose you decide to sell your bonds today, when the required return on the bonds is 4..

Reviews

Write a Review

Financial Management Questions & Answers

  What was the average annual growth rate of dividends

A firms dividends have grown over the last several years. 10 years ago the firm paid a dividend of $2. Yesterday it paid a dividend of $4. What was the average annual growth rate of dividends for this firm?

  Salon quarterly financial statements

Would this pose any problems for the banker (at the bank where the salon borrows money) who reviews the salon's quarterly financial statements?

  Depth analysis of the performance of the company

Provide a brief summary of additional information which you would require in order to enable a more in depth analysis of the performance of the company and comment upon the financial position of JH Alarms plc in the light of the last three years' ..

  Concept of cost of capital mace manufacturing

Concept of cost of capital Mace Manufacturing is in the process of analyzing its investment decision-making procedures. Two projects evaluated by the firm recently involved building new facilities in different regions, North and South.

  Nfec use the last two fiscal years financial statements of

nfec use the last two fiscal years financial statements of the publicly-traded company you selected and calculate the

  Net profit margin-what is the firms return on equity

ABC earned a net profit margin of 5.8% last year and had an equity multiplier of 3.8. If its total assets are $102 million and its sales are 183 million, what is the firm's return on equity?

  What is the expected return on the mutual fund

Consider the following capital market: a risk-free asset yielding 0.75% per year and a mutual fund consisting of 70% stocks and 30% bonds. The expected return on stocks is 10.75% per year and the expected return on bonds is 3.25% per year. The standa..

  The call-option value of a callable bond

The call-option value of a callable bond is likely to be high when a) interest rates are high and expected to remain high b) interest rates are volatile c) markets are inefficient d) interest rates are low and expected to remain low.

  Evaluate the current and quick ratios

Compute the current and quick ratios for each of the three companies. (Round calculations to two decimal places.) Which firm is the most liquid? Why?

  Yield to maturity and required returns

The Brownstone Corporation's bonds have 6 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 9%. What is the yield to maturity at a current market price of $812?

  What is the net present value of spending

What is the Net Present Value (NPV) of spending $3,000 more today on an energy efficient hybrid car which will save you $900 a year for the next five years assuming you could invest this money elsewhere and earn 5%?

  Machine will require new inventory

ABC Co. is considering the purchase of a new machine. The purchase price is $20,000. Shipping is $1,250 and installation is $2,750. The machine will require new inventory of $3,000 of which 70% will be on credit. The Initial investment is ___ and 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