When faced with needing additional money during college, which option is NOT true?

You will be paying $10,300 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%.

Ahat [919]

Present value of obligation is: 10,300(Cumulative PVF at 8% for two years)=10,300*1.783=$18,367.63

Duration of obligation is 1.4808 years.

The duration of a zero-coupon bond is 1.4808 years would immunize the obligation. $18,367.63(1.08)1.4808=$20,584.82.

If interest obligation increases to 9%, the value of the bond would be $18,118.65 and it changed by $0.19, the same is for if it falls to seven percent.

Hope this helps, now you know the answer and how to do it. HAVE A BLESSED AND WONDERFUL DAY! As well as a great rest of Black History Month! :-)

- Cutiepatutie ☺❀❤

5 0

3 years ago

Instructions: Please answer questions A-D below. I can't award credit if A-D isn't answered completely.

enyata [817]

Answer:

A, 3.8 years

b NPV = $2,189,324.56

c. IRR = 20.33%

d. Primas Corp can carry out the conversion because it would be profitable all other things being equal

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period = amount invested / cash flow = $7,125,000 / $1,875,000 = 3.8 years

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator

Cash flow in year 0 = $-7,125,000

Cash flow each year from year 1 to 8 = $1,875,000

I = 12%

NPV = $2,189,324.56

IRR = 20.33%

D.the NPV is positive and the IRR exceeds the discount rate so the project is profitable and the company should undertake the project

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

To find the IRR 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 IRR button and then press the compute button.

3 0

3 years ago

If jj camera does not accommodate meg's needs, and she is otherwise qualified for the job, jj camera must demonstrate that the a

Crank

If JJ camera does not accommodate Meg's needs, and she is otherwise qualified for the job, JJ camera must demonstrate that the accommodations would create (a) UNDUE HARDSHIP for the company.

Undue hardship refers to an action that will lead to increase in expense or difficulty on company or the employer. It is an accommodating action. It is not necessary for an employer to accommodate an undue hardship. If the company needs to accommodate an undue hardship, it should look for some other accommodation that does not impose such hardship on the company.

8 0

4 years ago

1. Describe a company that you think uses advertisement well as a promotional strategy. What do you think makes their advertisem

egoroff_w [7]

I would choose Nike because they have a saying and it is catchy. What makes their advertisement successful would be that they make new commercials every month and they don’t show the same one over and over again.

4 0

4 years ago

Read 2 more answers

The set of assets and liabilities linked to a brand that add to or subtract from the value provided by the product or service is

Ede4ka [16]

Answer: The set of assets and liabilities linked to brand that add to or subtract from the value provided by the product or service is referred to as Brand Equity.

<u>Explanation:</u>

Brand Equity is the buzz word in the modern business and commercial world. It is the perceived and apparent value of brand name which can be the total worth of the organization. It is that value of the organisation that pulls consumers and customer as well as client base towards it.

Brand Equity in other words means the sum total worth or value added to an existing product under the same brand name. It can be done in multifarious ways such as putting up distinct logo for the product, easily recognizable and understandable names, adding more distinct titles and enhancing the durability of the product - all these contributes in a big way to add valuable and precious value to the existing brand.

Once measures such as above are taken to add distinct value to the brand the turnover and sales of the product subsequently increases since people get to know and recognize the product. Therefore, in order to develop sold brand one has to focus on brand equity by other measures such as creating awareness and developing loyalty for the product by the consumers.

8 0

4 years ago