Answer:
$850
Explanation:
Data provided in the question:
Initial investment = $15,000
Expected annual net cash flows over four years, R = $5,000
Return on the investment = 10% = 0.10
Present value of an annuity factor for 10% and 4 periods, PVAF = 3.1699
The present value of $1 factor for 10% and 4 periods = 0.6830
Now,
Net present value = [ R × PVAF ] - Initial investment
= [ $5,000 × 3.1699 ] - $ 15,000
= $15,849.50 - $ 15000
= $849.50 ≈ $850
Answer:
Option(B) is the correct answer to the given question .
Explanation:
The main objective of Privatisation leads Laws to the facilitate the most companies to seek the sector and to increase market position.The Privatisation increases the efficiency by giving the extra money to the labour or the employee it means it increases the productivity .
- In the Privatisation the higher profit is gained that are distributed to the manager and the higher authority .In the Privatisation the skills of technical is very high .
- In the Privatisation there is increase of higher productivity and higher profit that's why the option(B) is correct.
- All the other option are not correct for the Privatisation definition that's these are incorrect option .
Answer:
Market price of bond = $2,166.30
Explanation:
Step 1
<em>Calculate the interest payment per 6 months and number of periods</em>
Interest rate per 6 months = (5.96% × 2000)/2 = 59.6
Number of periods = 19 × 2 = 38 periods
Step 2
<em>Calculate the Present Value (PV) of the interest payment</em>
Yield per six month = 5.3%/2 = 2.65%
PV = A × (1+r)^(-n)
= 59.6× ( (1.0265)^(-38)/0.0265 )
= 59.6 ×23.7685
= $1,416.60
Step 3
<em>Calculate the PV of the Redemption Value (RV)</em>
PV = RV × (1+r)^(-n)
= 2000 × (1.053)^(-19)
= 749.705925
Market price of Bond =1,416.60 + 749.70
= $2,166.30
Market price of bond = $2,166.30
Answer:
$5.89
Explanation:
The computation of current dividend per share is shown below:-
(Dividend in One Year) ÷ Current Price
= 14% ÷ 2
= 7%
Dividend = Dividend yield × Stock currently sold per share
= 0.07 × $90
= 6.3
Current dividend per share = Dividend ÷ (1 + Dividend yield)
= 6.3 ÷ (1 + 0.07)
= 6.3 ÷ 1.07
= $5.89
Therefore for computing the current dividend per share we simply applied the above formula.
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
A) An investment project provides cash inflows of $660 per year for eight years. The initial cost is $1,825
660*2= 1,320
Rest= 1,825- 1,320= 505
Pay-back period= 2 years + (505/660)= 2.77 years
B) What is the project payback period if the initial cost is $3,550
Pay-back period= 5 years + (250/660)= 5.38 years
C) if the initial cost is $5,400
Pay-back period= 8 years + (120/660)= 8.18 years