Answer:
In order to find the present value of the bond we have to calculate the present value of investment A and subtract is from 1529. We can find the present value of A by discounting all its cash flows.
As the first cash flow is received today and the last will be received 3 years form now there will be a total of 4 cash flows
1) 218.19 (Will not be discounted as we are receiving it today in the present)
2) 218.19/1.0987 (Discount by 1 year as cash will be received in 1 year)
3) 218.19/1.0987^2 (Discount by 2 years as cash will be received in 2 years)
4) 218.19/ 1.0987^3 (Discount by 3 years as cash will be received in 3 years)
= 218.19 + 198.58 + 180.74+ 164.51 = 762.02
PV of Bond = 1529-762.09= 766.91
Semi annual coupons mean 2 payments a year. Bond B matures in 23 years which means a total of 46 payments (23*2). N=46. A coupon rate of 6.4 percent means that the bond pays $64 (0.064*1000) each year. $64 divided by 2 is 32 which is the amount of each semi annual payment Arjen receives. Pv= 766.91 FV = 1000
In a financial calculator put
PV= -766.91
N= 46
FV=1000
PMT= 32
and compute I
I is 4.38 and we will multiply it by 2 because the payments are semi annual. So we will get an I of 8.76
YTM= 0.0876
Explanation:
Answer:
The answer is b. $104,800
Explanation:
W-2 for Jan $52,300+ Sam $48,700 + canceled debt income of $1,800 + state lottery winnings of $2,000 = $104,800
Answer:
A. NPV for A= $61,658.06
NPV for B = $25,006.15
B. 1.36
1.17
Project A
Explanation:
Net present value is the present value of after tax cash flows from an investment less the amount invested.
NPV can be calcuated using a financial calculator
for project A :
Cash flow in
Year 0 = $(172,325)
Year 1 41,000
Year 2 47,000
Year 3 85,295
Year 4 86,400
Year 5 56,000
I = 10%
NPV = $61,658.06
for project B
year 0 = $ (145,960)
Cash flow in
Year 1 27,000
Year 2 52,000
Year 3 50,000
Year 4 71,000
Year 5 28,000
I = 10%
NPV = $25,006.15
profitability index = 1 + NPV / Initial investment
for project A, PI = $61,658.06 / 172,325 = 1.36
For project B, PI = $25,006.15 / 145,960 = 1.17
The project with the greater NPV and PI should be chosen. this is project A.
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Answer:
$220 million
Explanation:
According to given information in question:
Assets = $400 million
Liabilities = $180 million
Accounting Equation:
Assets = Equity + Liabilities
$400 million = Equity + $180 million
Equity = $400 million - $180 million
Equity = $220 million
Based on the accounting equation, Prosian Italia's owners' equity is equal to $220 million.
Answer:
Explanation:
1. Ticket location is the most important attributes in the overall purchase decision. It is with a 39.49% of the general choice weight.
2. Verily, the conjoint assessment results are important in choosing assessing decisions. Ticket cost contained 38% of the examination. From the data, we can conclude fans are increasingly loath to purchase $60 tickets. By joining this ticket cost with various characteristics with higher utility scores, we can deliver a group that will be impressively all the more addressing the fans. The proportionate should be conceivable with the other evaluating decisions to make various group offers .The Portland Trail Blazers' NBA foundation was in a terrible position. Fans were spilling out the door, and the players couldn't find the bushel. The gathering wore a 22-36 record and advance managers presently ran its home, the Rose Garden after its owners had proclaimed money related indebtedness. The gathering's guide had been ended for sure. The field had been a sellout just three years earlier, and the gathering had been dear by Portland. However, starting in the 2003 season, interest began to fall pointedly by more than 15 percent by 2005. In the midst of a comparative time, 42 of 70 indulgence suites sat void in the midst of the period. More Portland crowd individuals viewed the atmosphere by then Blazers' amusements.
3. Yes there could be more than one.
By looking at the conjoint assessment and other data open from the survey, I believe that the Portland Trail Blazers the officials should offer two unmistakable packs. One being either six or ten redirections for each group. Disregarding the way that organization lean towards the six preoccupation pack, giving fans the decisions to buy for ten diversions will empower the gathering to sell more tickets. Regarding seating, they should offer the mid 300 court seats, averaging between $40-50