Answer:
What will be the amount of this annuity payment?
$711.888
Explanation:
N Monthly principal interest Net value
5.000.000
1 711.888 361.888 350.000 4.638.112
2 711.888 387.220 324.668 4.250.893
3 711.888 414.325 297.562 3.836.568
4 711.888 443.328 268.560 3.393.240
5 711.888 474.361 237.527 2.918.879
6 711.888 507.566 204.322 2.411.313
7 711.888 543.096 168.792 1.868.218
8 711.888 581.112 130.775 1.287.106
9 711.888 621.790 90.097 665.315
10 711.888 665.315 46.572 (0)
Answer:
a. Project A requires an up-front expenditure of $1,000,000 and generates a net present value of $3,200.
Explanation:
a.
The company should accept project A because it provides a positive net present value of $3,200 that is the highest among all the projects.
b.
When the IRR of a project is lower than the required rate of return of the project, it will generate the negative net present value because at IRR the net present value of the project will be zero and at a higher rate than IRR it will be negative.
c.
The project with a profitability index of less than 1 generates a negative NPV because the present value of future cash flows is less than the initial cash outflow.
d.
Project D also generates a positive net present value but it is lower than project A. So, after comparing the results we will choose the project with higher NPV.
Answer:
$26.67
Explanation:
Total Common Equity New = Total Common Equity Old + Net Income -Dividends Paid
Total Common Equity New = $4,050,000 + $450,000 - $100,000
Total Common Equity New = $4,400,000
Book value per share = Total Common Equity / Shares Outstanding
Book value per share = $4,400,000 / 165,000 shares
Book value per share = 26.66666666666667
Book value per share = $26.67
Answer:
I would politely reach out to XYZ organization and let them know I won't be taking them on their offer
Explanation:
In this particular situation, there is no legal binding in this agreement to start work. There is no responsibility from me to XYZ corporation.
If this new offer excited me more than what XYZ corporation has offered, then I have to decide which company i would decide to do my internship with. So I would have to politely decline the offer from XYZ.