Answer:
I will pay $1070.24 for the Bond.
Explanation:
Coupon payment = = $80
Number of years = n = 10 years
Price of bond is the present value of future cash flows, to calculate Price of the bond use following formula:
Price of the Bond = C x [ ( 1 - ( 1 + r )^-n ) / r ] + [ F / ( 1 + r )^n ]
Price of the Bond =$80 x [ ( 1 - ( 1 + 7% )^-10 ) / 7% ] + [ $1,000 / ( 1 + 7% )^10 ]
Price of the Bond = $80 x [ ( 1 - ( 1.07 )^-10 ) / 0.07 ] + [ $1,000 / ( 1.07 )^10 ]
Price of the Bond = $561.89 + $508.35
Price of the Bond = $1,070.24
Answer:
the payback period is 3.34 years
Explanation:
The computation of the payback period is as follow;
Given that
Year Cash flows Cumulative cash flows
0 -$40,000 $-40,000
1 $3,000 $3,000
2 $8,000 $11,000
3 $14,000 $25,000
4 $19,000 $44,000
5 $22,000 $66,000
6 $28,000 $94,000
Now the payback period is
= 3 years + ($40,000 - $25,000) ÷ $44,000
= 3 years + 0.34
= 3.34 years
Hence, the payback period is 3.34 years
Answer:
A. 1. department team
2. cross-departmental team
3. administrative team
B. Louise needs to pay close attention to the individuals who are all "quite different." Louise must monitor each staff member accordingly to ensure that that team stays productive.
Explanation:
Answer:
$225
Explanation:
The computation of the free cash flow generated during 2015 is shown below:
As we know that
Free Cash Flow = After-tax operating income - Net capital investment
where,
Average tax operating income is $725
And, the net capital investment is
Net capital investment = Total assets for 2015 - Total assets for 2014
= $2,500 - $2,000 = $500
So, the free cash flow is
= $725 - $500
= $225