1. A company is considering entering into a new marketing campaign. If it engages in this marketing campaign, it must pay $9,000 immediately and $7,000 each at the end of year 1 and year 2. The company believes its annual revenues due to the marketing campaign will be $11,000 at the end of year 1, $9,000 at the end of year 2, and $6,000 at the end of year 3. What is the annual equivalent worth of this marketing campaign over the next three years? The interest rate is 6.8% compounded annually."

2. "Motors R Us requires a specific painting process for one its automobiles that will be manufactured for exactly eight years. Three options are available. Neither option 2 nor option 3 can be repeated after its process life. However option 1 will always be available at the same cost during the period of eight years. Here are the options: -Option 1 is to subcontract out the process at a cost of $116,000 per year. -Option 2 costs $151,000 immediately and has annual operating and labor costs of $85,000 and a useful service life of eight years with a salvage value of $41,000. -Option 3 costs $118,000 immediately and has annual operating and labor costs of $75,000 and a useful service life of five years with a salvage value of $23,000. For years six through eight, the firm will follow option 1. Enter the ""net present cost"" for the option that you would recommend if i = 14.8%. Enter your answer as positive number."

## What was the dollar-based return on the securityOver the holding period the euro moves from $1.1/euro to $1.15/euro. What was the U.S. dollar-based return on the security? |

## Suppose that the installation of low-loss thermal windowsSuppose that the installation of low-loss thermal windows is expected to save 450 per year on bills. If you live in your home for 40 years and could earn 6% per year on other investments, how much could you afford to pay now to have the windows insta.. |

## How much money per year will the bank provideYour rich uncle has promised to invest $500,000 in your startup 3 years from today. How much money per year will the bank provide? |

## Determining profit or loss from an investmentDetermining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions that would be charged to buy and sell your IB.. |

## Firm cost of capital is affected by firm capital structureA firm’s cost of capital is affected by the firm’s capital structure. A bond that sells at a price higher than its par value is called a face value bond. |

## European call option contractsYou take a short position in 100 European call option contracts, with strike price $50 and maturity three months, on a stock that is trading at $52. The annual volatility of the stock is constant and equal to 22%. The annual, continuous risk-free int.. |

## Discount rate-calculate the present value of annuityYou will receive $5,000 per year, every year for the next five (5) years, beginning at the end of this year. If you use 6% as your discount rate, calculate the present value of this annuity. |

## No-arbitrage band for the stock-futures price relationshipThe one-year futures price on a particular stock-index portfolio is 406, the stock index currently is 400, the one-year risk-free interest rate is 3%, and the year-end dividend that will be paid on a $400 investment in the index portfolio is $5. Give.. |

## Share in commissions for each transactionYou paid 50 cents per share in commissions for each transaction. What is the balance of your account? Annual interest rate is 10%. |

## In a period of heightened price volatility-what is a buybackIn a period of heightened price volatility, the beta of the market will: What is a buyback? What is a bank? |

## Establish delta-neutral positionhow many shares of stock must you buy to establish a delta-neutral position? |

## The analysis of the chosen type of trace evidenceDescribe materials that can be transferred from a person to another person or to an inanimate object during a crime. |

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