What is the payback period for the set of cash flows

Assignment Help Financial Management
Reference no: EM131322505

1. What must be the end-of-month mortgage payment amount required to repay a loan of $52,000 in 25 years? Assume k=0.14 (14%) with monthly compounding.

a. 622

b. 624

c. 626

d. 628

2. What is the payback period for the following set of cash flows?
YearCash Flow
0–$5,400
1- 1,475
2- 1,675
3 -2,075
4 -1,575

Reference no: EM131322505

Questions Cloud

Develop an original research study proposal and describe it : Develop an original research study proposal and describe it in detail in a 10-12 page (APA style) paper.  Include at least 10 scholarly references in your proposal
How you applied each of the steps in the gebmo process : Discuss how you applied each of the steps in the GEBMO process and what risks you identified. Provide recommendations for preventing spills or releases. Discuss response actions required in the event of a spill or release.
Why should managers work to create a climate of openness : Shortell and Kaluzny describe a climate of openness as a place where "information flows freely, people can express their views, and decision making takes advantage of multiple perspectives." In your opinion, why should managers work to create a cl..
Distinguish between a quota sample and a purposive sample : Distinguish between a quota sample and a purposive sample.- What three criteria characterize good descriptions of data?
What is the payback period for the set of cash flows : What must be the end-of-month mortgage payment amount required to repay a loan of $52,000 in 25 years? Assume k=0.14 (14%) with monthly compounding. What is the payback period for the following set of cash flows?
The sample used most frequently in behavioral research : Is it true that valid conclusions cannot be drawn from studies that are conducted on convenience samples? Why or why not?
Calculate the values of a and c : Show algebraically that y = 2ex + 5e-x can be written in the form y = A cosh(x - c). Calculate the values of A and c. Explain what this tells you about the graph in part (a).
List at least two advantages of your chosen concept : Of the three concepts, which one do you feel is the most feasible to apply to your daily lives in an effort to reduce waste? List at least two advantages and disadvantages of your chosen concept and defend your choice.
Changes in terms of community healthcare : How will the U.S demographics change and thus our U.S patient population change between now and the year 2050. And what are the implications of these changes in terms of community healthcare.

Reviews

Write a Review

Financial Management Questions & Answers

  Deduction for their home mortgage interest

In 2013, Chip and Jane Wood paid $83,700 interest on a mortgage they incurred to build their home in Charleston, SC. The average principal balance of the mortgage was $1,430,000. The home has an appraised FMV of only $1,200,900. Compute Chip and Jane..

  Preferred stock receiving a before-tax preferred yield

A corporate investor of preferred stock receiving a before-tax preferred yield of 8.5%, and having a corporate tax rate of 30%, would receive an after-tax preferred yield of approximately _____. Assume the tax rate on dividends is 15%.

  Explain how a firm can hedge its translation exposure

Hedging translation exposure. Explain how a firm can hedge its translation exposure. Exchange rate effects on earnings. Explain how an MNC's consolidated earnings are affected when foreign currencies depreciate.

  What amount will your annual payment be

To buy a new house you must borrow $150,000. To do this, you take out a $150,000, 20-year, 9% mortgage. Your mortgage payments, which are made at the end of each year (one payment each year), include both principle and 9% interest on the declining ba..

  The prevailing annualized yield on other bonds

A 2-year bond has a par value of $1,000 and a semiannual coupon rate of 5 percent. The prevailing annualized yield on other bonds with similar characteristics is 7 percent. What is the appropriate market price of the bond?

  What amount will clancey receive when it issues the bonds

Clancey Inc. issues $2,155,700 of 7% bonds due in 13 years with interest payable at year-end. The current market rate of interest for bonds of similar risk is 12%. What amount will Clancey receive when it issues the bonds?

  Considering buying or leasing a new latest BMW model

What is the present value of all required payments under the lease contract? A check of the Auto Lease Guide (ALG) reveals an anticipated depreciation of 7% per annum, if the current price is $35,000 what is the anticipated future value of the car, i..

  Make the present value of both prizes equivalent

Carol has won a prize in the "Wait To Spend" lottery. Specifically Carol has won the amount of $1500 but she must wait for 10 years to receive the money. Carol is in real need of cash and would rather receive a different prize: $525 today and then re..

  According to the capital asset pricing model

According to the Capital Asset Pricing Model, the introduction of a risk-free asset renders the efficient frontier of efficient portfolios linear. How many portfolios of risky assets (portfolios of only risky assets) lie on the resulting Capital Mark..

  Proportion of of financing that came from debt and equity

Caraway Seeds estimated its weight average cost of capital to be 9.5% based on the fact that its after tax cost of debt financing was 11% and its cost of equity was 8%. What are the firms capital structure weights (the proportion of of financing that..

  How asset allocation enable to accomplish diversification

How would Stephanie's asset allocation decisions be different if she were a single mother of two children?- How would Stephanie's asset allocation decisions be affected if she were 35 years old? If she were 50 years old?

  Calculate value for project that requires initial investment

Calculate the following values for a project that requires an initial investment of $38,370 and has equal annual cash inflows of $10,000 each year for the next 8 years. Assume a cost of capital of 14%. You must show your work for full credit.

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