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 yield to maturity for treasury bonds

Suppose today is January 2, 2015, and investors expect the annual risk-free interest rates in 2019 and 2020 to be: Currently, a four-year Treasury bond that matures on December 31, 2018 has an interest rate equal to 2.5 percent. What is the yield to ..

  The first deposit will occur one year from today

You will deposit $150 each of the next five years (the first deposit will occur one year from today, and there will be a total of 5 equal deposits) into an account that pays a 6.50% effective annual rate. Six years from today, you wish to have exactl..

  Calculate price to earnings ratio and market-to-book ratio

Calculate Return on Equity using the Du Point identity. If JCI has 685 million shares outstanding at the end of 2013 and a market value of $24 billion. Calculate the price to earnings ratio, and market-to-book ratio. If all of the net income is paid ..

  Considering issuing new shares of common stock

Cayman’s Crafters is also considering issuing new shares of common stock. Their investment banker has advised them that it is a good time to sell and that the market’s required rate of return on similar securities is currently 8.5%. You will be recei..

  The cost of equity is less than the cost of debt

Suppose Mr. Thomas, president of your company, has hired you to determine the firm's cost of debt and the cost of equity capital. Based on his analysis, Mr. Thomas is recommending that the company increase its use of equity financing because "debt co..

  What price must each widget be sold for the company

The Orion Company will produce 75,000 widgets next year. Variable costs will equal 25 percent of sales, while operating fixed costs will total $110,000. At what price must each widget be sold for the company to achieve an EBIT of $120,000?

  Weighing a lease versus purchase of some new machinery

Williams' Paints is weighing a lease versus a purchase of some new machinery. The purchase price is $312,000. The equipment will be depreciated to zero over the 4-year life of the project after which time it is expected to have a resale value of $76,..

  Corporation had cash flow from operating activities

For year ended 12/31/15, a corporation had cash flow from operating activities of $55,000, cash flow from investment activities of -$35,000, and cash flow from financing activities of -$45,000. The Statement of Cash Flows would show a…

  Inflation is expected to cause this price to increase

A retirement home at Deer Trail Estates now costs $185,000. Inflation is expected to cause this price to increase at 6% annually over the next 20 years. How large an equal, annual, end –of-year deposit must be made each year into an account paying an..

  Time value of money and retirement funding

Starting with your current situation, what must you do to ensure an annual retirement income of $75,000 starting at age 65?  Make sure that you submit time value of money calculations that support the conclusions. Do you think that there is a “retire..

  What should be the price per share

You are working on the valuation for an upcoming IPO. The company that wants to sell its stock expects the following future free cash flows (FCF, in millions of dollars): -7 in year 1, 8 in year 2, 19 in year 3, and cash flows are expected to grow st..

  Why does longer-term bond fluctuate more when interest rates

(Bond Valuation) Crawford Inc. has two bond issues outstanding, both paying the same annual interest of $85, called Series A and Series B. Series A has a maturity of 12 years, whereas Series B has a maturity of 1 year. Why does the longer-term (12-ye..

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