Require to cash in at the end of ten years

Assignment Help Finance Basics
Reference no: EM139568

Q. 1) You have €12 000 in cash. You can deposit it today in the mutual fund earning 8.2% semi-annually, or you can stay, benefit from some of it, and invest €11 000 in your brother's business in 2 years. Your brother is assuring you a return of at least 10% on your investment. Either alternative you select, you will require to cash in at the end of ten years. suppose your brother is trustworthy and both investments carry similar risk.

2) Jack comes to a decision to purchase a car. He can also lease the car or buy it with the 3 year loan. Car he wants to purchase costs $45,000. Dealer has the special leasing arrangement where he pays $1 today and $650 per month at commencement of each month for next 3 years. If he purchases car, he will pay it off in monthly payments over next 3 years at an 10% annual percentage interest rate (APR) with monthly compounding. He also believes that he will be able to sell car for= $30,000 in 3 years.

Question: Compute the present value of the total costs if Jack decides to lease the car?

Reference no: EM139568

Previous Q& A

  Add two pilots also flight attendants

Adding four or more flights to existing routes, it will have to add two pilots also flight attendants.

  Your assessment of marx as economist also as a philosopher

Analyze this statement in terms of your assessment of Marx as economist also as a philosopher.

  Developer should assemble the parcels

Illustrate what is the condition that determines whether or not the developer should assemble the parcels.

  Assume that your household gets a machine

Assume that your household gets a machine that cost Lesley provides you with food. Illustrate what would that do to your labor supply.

  Number of tickets sold decreases

Illustrate what is the elasticity of demand if you raise the price of your airline's tickets by 6% also the number of tickets sold decreases.

  What is the producer surplus in the market

Illustrate what is the Consumer Surplus in the market. Illustrate what is the Producer Surplus in the market.

  Savings rate needed to achieve golden rule level of capital

Assume the U.S. government implements a policy that achieves the savings rate needed to achieve the golden rule level of capital.

  What financial market yield data

Illustrate what financial market yield data can the Federal use to determine if longer term inflation expectations are well anchored

  Monopoly firms to innovate less rapidly

Explain the replacement effect, which may cause monopoly firms to innovate less rapidly.

  Natural rate of unemployment for this economy

Illustrate what is the natural rate of unemployment for this economy. Assume the economy has been in equilibrium for a while also the inflation rate is 15%.

Reviews

Write a Review

 

Similar Q& A

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Violet isaacsongave jeanne collection of coin

One month before she died on April 14, 2002, Violet Isaacson (Jeanne's mother) gave Jeanne collection of coin.

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Given the information on the company

You are given the information on the company. Total market value is= $38 million. Company's capital structure, given here, is considered to be optimal.

  Measure, model, and forecast the volatility of bond returns

Measure, model, and forecast the volatility of bond returns in Canada, Determine the optimal hedge ratio for a spot position in cattle or oil markets

  Shaw for breaking of contract

On April 14, 1994, Bill Shaw, retired policeman, offered to sell Thurgood his 1965 Mustang convertible for= $1,000.

  Interest accrues during nine months

How much interest accrues during nine months in which you have short position.

  How many of coupon bonds should east coast yachts

How many of coupon bonds should East Coast Yachts issue to increase the $40 million? How many of zeroes must it issue.

  Evaluate abc cost of equity capital by using the market risk

Evaluate ABC cost of equity capital by using the market risk premium of 3.5%. What is firm's WACC under each of 2 suppositions about market risk premium.

  Estimate annual fcff

Prepare an Excel spreadsheet containing Estimate annual FCFF

  Iron company sells its irons

Suppose that discount rate is 10% each year, there is no possibility of repeat order, also Q will pay either in full or not at all.

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