Answer:
1+0.075 x 1000
= 1075
If bonds are called back there would be 75 dollars more compared to fv
We calculate the yield to maturity using excel.
We use this formula to calculate this
YTc is = RATE(7, 11%x1000-1000x1000)x1.075
= 11.749%
Now this investor should be happy they were called by the ATT because the return they got back is more than what they were hoping to get at the time of purchase. YTc is higher and there is 75 dollars more fv
Answer:
-$1,000
Explanation:
A firm has an initial investment of $5,000 when evaluating an investment proposal
The cash flow is presently valued at $4,000
Therefore, the net present value can be calculated as follows
Net present value= present value of cash flow-initial investment
= $4,000-$5,000
= -$1,000
Hence the net present value of the investment is -$1,000
The difference between the "full replacement cost" and the "cash value" renters insurance is one involves full replacement cost and the other depreciated value.
<h3>What is renters insurance?</h3>
Renter's insurance is the property insurance that covers the (renter's) policyholder's personal belongings, liability, and some living expenses in case of a loss event.
With replacement cost renters insurance, the policyholder has sufficient funds to replace all insured belongings and other losses.
With cash value renters insurance, the policyholder can only recover the depreciated value of their assets.
Thus, the difference between the "full replacement cost" and the "cash value" renters insurance is one involves full replacement cost and the other depreciated value.
Learn more about renters insurance at brainly.com/question/1973043
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Answer:
metro area in the north
Explanation:
more business and big cities like new york (just an example)
Answer:
PI=103.67%
Explanation:
Calculation for PI
To calculate PI (PROFITABILITY INDEX) the first step is to calculate the NPV ( Net present value) using Financial calculator by following the below step
CF0= -$5,000
C01=$900
FO1=3years
CO2= $1,400
FO2=3 years
NPV=?
I=8%
The next step is to enter the down arrow Cpt
Hence,
NPV = $183.48
Since we have know the NPV Now let calculate the PI using this formula
PI=(NPV+Potential project)/Potential project
Let plug in the formula
PI= ($183.48+$5,000)/$5,000
PI=$5,183.48/$5,000
PI= 1.03669*100
PI=103.67%
Therefore the PI will be 103.67%