Answer:
NPV is $28.5 million
Payback is 4.31 years
IRR is 13.25%
MIRR is 12.51%
Explanation:
The NPV,payback period,Internal rate of return and modified internal rate of return were computed in the attached spreadsheet.
Payback period=the year of the first positive cumulative cash flow+the year cumulative cash flow/the next year cash flow
the year of first positive cumulative flow is year 4
the cumulative cash flow for year 4 is $66 m
the next year cash flow is(year 5) is $210
payback=4.31
The bond can be called at par in one year or anytime thereafter on a coupon payment date. Ithas a price of $97 per $100 face value
<h3>What is
bond?</h3>
A bond is a type of financial security in which the issuer owes the holder a debt and is obligated to repay the principal of the bond as well as interest over a specified period of time, depending on the terms. Interest is usually paid at regular intervals.
Bonds are one way for businesses to raise funds. A bond is a loan made between an investor and a corporation. The investor agrees to give the corporation a specific sum of money for a set period of time. In exchange, the investor receives interest payments on a regular basis.
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Answer:
$368,000
Explanation:
In order to appraise the property using the capitalization approach, we must first determine a net cash flow:
net cash flow = $48,000 - $3,600 - $15,000 = $29,400
Now we calculate the property value using the perpetuity formula:
property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?
<span>Holding cash simply as a financial reserve is referred to as the "speculative" motive.
</span>Speculative motive refers to a strategy that is utilized by financial specialists/merchants to hold money to make the best utilization of any speculation opportunity that emerges later on. Keeping all cash contributed doesn't appear to be appealing constantly. Keeping up a decent lot of liquidity in one's portfolio is one of the best needs for n investor.
For the most part, financial specialists keep a decent measure of such money with them in order to acquire higher benefits.
