Answer:
- $33,678.21
Explanation:
Cash flow Summary of the Project will be as follows
Year 0 = $410,000 + $3,000 = - $413,000
Year 1 = $101,000
Year 2 = $101,000
Year 3 = $101,000
Year 4 = $101,000
Year 5 = $101,000 + $41,000 + 3,000 = $145,000
So the Net Present Value can now be calculated using the CFj function of a Financial calculator as follows :
- $413,000 CF 0
$101,000 CF 1
$101,000 CF 2
$101,000 CF 3
$101,000 CF 4
$145,000 CF 5
i/yr = 13%
Shift NPV = - $33,678.21
Answer:
Instructions are listed below.
Explanation:
Giving the following information:
PV= $7,800
Regency Bank:
i= 0.5 percent per month
n= 19*12= 228
King Bank:
i= 6 percent annually
n=19
To calculate the final value of each bank we need to use the following formula:
FV= PV*(1+i)^n
Regency bank:
FV= 7,800*(1+0.005)^228= $24,319.61
King bank:
FV= 7,800*(1.06)^19= $23,599.68
Answer:
Actively listen if she is at her desk but ask them to approach her at a better time if she is in the lunchroom or in the hallway
Answer:
2129 futures contracts to be sold
Explanation:
Asset worth = $310 million
Asset duration = 12 years
liabilities = $248 million
Liabilities duration = 5 years
T-bond futures contracts = 104-20 (30nds)
% of assets = 310 / 248 =
<u>Determine how many futures contracts Village Bank will sell to fully hedge the balance </u>
Number of Contracts = -[Assets * (Asset Duration – (Liabilities Duration * % of Assets) / (Duration * Contract Value)]
= - [ 310 * ( 12 - ( 5 * (310/248)) / ( 8 * ( 104 + ( 20/30)) ]
= - [ 310 * ( 12 - 6.25 ) / ( 8 * 104.6667 ) ]
= - [ 310 * 5.75 / 837.3336 ]
= - 2.12878 * 1000
= 2128.78 ≈ 2129 ( number of futures contracts to be sold )