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maw [93]
3 years ago
6

A project with an initial investment of $438,500 will generate equal annual cash flows over its 9-year life. The project has a r

equired return of 8 percent. What is the minimum annual cash flow required to accept the project
Business
1 answer:
motikmotik3 years ago
7 0

Answer:

$70 194.95

Explanation:

The computation of the minimal annual cash flow needed for accepting the project is shown below:

As we know that

Present value of annuity = Annuity × [1 - (1 + interest rate)^ - time period] ÷ rate

$438,500 = Annuity × [1 - (1.08)^ - 9] ÷ 0.08

$438,500 = Annuity × 6.246887911

So,

Annuity = $438,500 ÷ 6.246887911

= $70 194.95

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What is the practice of banks and mortgage lenders identifying high-risk areas (usually low-income or minority neighborhoods) an
Bogdan [553]

Answer:

redlining

Explanation:

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Banks cannot directly deny a credit based on where you live, but they can charge very high interest rates that make them very difficult to pay, or simply ask for a lot of paperwork and more requirements than usual.

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7 0
3 years ago
. Define a primary and secondary market for securities and discuss how they differ. Discuss how the primary market is dependent
Amanda [17]

Explanation:

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3 0
3 years ago
A $1,000 face value bond is currently quoted at 101.2. the bond pays semiannual payments of $28.50 each and matures in six years
goblinko [34]
Coupon rate is the yearly interest earned by a loan and it can be calculated with

C = \frac{i}{p}

where i is the annual interest and p is the par value of the bond or the initial loan amount.

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Thus, we have 

C = \frac{57}{1000} = 0.057

From this, the coupon rate is 0.057 x 100% = 5.7%.
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3 years ago
the financial meltdown of 2008 was in part due to , demonstrating the dangers of relying too heavily on the quantitative techniq
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The financial meltdown of 2008 was in part due to <u>quants </u>demonstrating the dangers of relying too heavily on the quantitative techniques of scientific management.

<h3>How did the financial meltdown of 2008 happen?</h3>

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Quants were quantitative models that were used to decide on the financial assets to invest in. They failed to predict the risks associated with Mortgage Backed Securities and this contributed in part to the meltdown.

Find out more on the financial meltdown of 2008 at brainly.com/question/25664180

#SPJ1

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