Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Your business just bought a brand new boat, in year zero, to help with underwater lumber recover. The boat, a ten-year asset, cost $1,500,000. The boat requires less crew and is more fuel efficient reducing fuel and operating costs from $3.5M per year to $3.2M. The reduced fuel use allows you to reduce your fuel inventory from $50,000 to $40,000. The purchase is funded with cash and a $1M loan at 10% per year with a payment in years 1 and 2. Please assume a 50% tax rate, and that you can sell the boat in year 3 for $1M.
(a) Show the calculations relating to the loan.
(b) Show calculations relating to depreciation and gains tax.
(c) Complete the following cash flow projection.
You want to borrow $69,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,200, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 78-month APR loan?
You manage an equity fund with an expected risk premium of 13.2% and a standard deviation of 46%. The rate on Treasury bills is 4.6%. Your client chooses to invest $105,000 of her portfolio in your equity fund and $45,000 in a T-bill money market fun..
The Alliance pays the Blue Hands men to seize the crew of Serenity. They pay $62,000 to have five crew members seized or killed. Each arrest costs twice as much as the previous one. What is the marginal cost of the fifth arrest?
Appliance for Less is a local appliance store. It costs this store $22.92 per unit annually for storage, insurance, etc., to hold microwave in their inventory. It takes approximately 5 day(s) to receive an order after it has been placed. If the store..
What is the expected return on a bond if the return is 9% two-thirds of the time and 3% one-third of the time? What is the standard deviation of the returns on this bond? Would you prefer this bond or one with an identical expected return and a stand..
An investor purchases one September T-bond futures contract at 115-110. The settlement price for the contract on next day is 117-225. What is the marked-to-market gain/loss for the investor? (Please provide explanation with answer)
Define monetary policy, and discuss the operation of monetary policy in the United States post-GFC.
On October 5, 2015, you purchase a $12,000 T-note that matures on August 15, 2027 (settlement occurs two days after purchase, so you receive actual ownership of the bond on October 7, 2015). The coupon rate on the T-note is 4.386 percent and the curr..
Standard Corporation is investing $400,000 of fixed capital in a project that will be depreciated straight-line to zero over its ten-year life. Annual sales are expected to be $240,000, and annual cash operating expenses are expected to be $110,000. ..
In 2013 Caterpillar Inc. had about 654 million shares outstanding. Their book value was $33 per share, and the market price was $86.50 per share. The company’s balance sheet shows that the company had $19.7 billion of long-term debt, which was curren..
North Construction had $850 million of sales last year, and it had $425 million of fixed assets that were used at only 80% of capacity. What is the maximum sales growth rate North could achieve before it had to increase its fixed assets?
Last year Star Inc paid a dividend of $1.50 on its common stock last year. You expect the dividend will increase at 15% each year over the next three years; but after that, a normal growth rate of 5% is expected for the foreseeable future. The stoc..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd