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Please show me how to calculate bond duration. I don’t get the formula at all. Bond Duration: $15,000 Company A Bond Yrs to maturity – 25 Coupon – 9% FMV – $3,000.47 Cost Basis – $12,950.00

Assume you won the lottery for $7M.

Friday, 12 September 2014 by

Assume you won the lottery for $7M. You have the following two choices in how you want to receive your prize: 1. $350,000 each year for the next 20 years, with the first check received today 2. One lump sum of $4M in cash today. Which is the better option?

Initial investment outlay of $20 million for equipment only Project and equipment life: 5 years Sales projected to be $12 million per for 5 years Assume gross margin of 50% (exclusive of depreciation) Depreciation: straight-line for tax purposes Selling, general and administrative expenses: 10% of sales Tax rate: 35% Solve for NPV and IRR

Your company is considering a project

Friday, 12 September 2014 by

Your company is considering a project (expanding its household product division). Your company is a private company and there are no securities issued and traded in public financial markets. Assume that the project will be 100% equity financed. The initial investment would be 10 million dollar and free cash flows (FCF) for next four years

b. Briefly discuss the concept of relevant cash flows when evaluating a new project. 1- Explain the relationship between (i) discount rate and present value, and (ii) compound rate and future value. 2- Why is the future value for an annuity due always higher than that of an ordinary annuity? 3- Although the payment made

Suppose a company has hired you to estimate the cash flows arising from a proposed capital project by replacing old equipment with a $0 market value and a book value of $6000, and you have been handed the relevant data below. The project being considered has a 5-year tax life, and at the end of

Blue Grass Life insurance is trying to sell you an investment policy that will pay you and your heirs $10,000 per year forever. If the required return on this investment is 12%, how much will you pay for the policy?

Determine what payments are required to repay a $100,000 loan over 20 years in equal monthly installments if interest rates remain at 9% p.a. (compounded monthly)

In May 1992, a 60 yr old nurse gambled $12 in a Reno casino and walked away with the biggest jackpot in history – $9.3 million. In reality, the jackpot wasn’t really worth $9.3 million. The sum was to be paid in 20 annual installments of $465,000 each. What is the present value of the

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