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Finance Homework Management questions

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Question;Question 2;1. If the effective rate is;19%. What is the nominal rate if compounding is daily. Do not enter the symbol;% in your answer. Simply enter the answer in percentages rounded off to two;decimal points.;Question 3;1.;The ABC Company is considering a new project which will require an;initial cash investment of $14,864. The projected cash flows for years 1;through 4 are $9,722, $9,118, $8,632, and $5,842, respectively. If the;appropriate discount rate is 11%, compute the NPV of the project.;Enter your answer;rounded off to two decimal points. Do not enter $ in the answer box.;Question 4;1. How many months it will;take to grow your money from $4,712 to $7,580 if you can earn an interest of;16% compounded monthly? Note: Do not write "months" in your answer.;Simply write the number in the answer box.;1 points;Question 5;1. What is the effective;rate of 18% compounded monthly?;Do not enter the symbol % in your answer. Simply;enter the answer in percentages rounded off to two decimal points.;1 points;Question 6;1. How much do you need to;invest today in order to have $14,899 at the end of 12 years if you are sure to;earn an interest at the rate of 11%? Note: Do not put $ sign in your answer.;Simply write the number in the answer box.;1 points;Question 7;1. What is the future value;of $2,029 invested for 6 years at 12% if interest is compounded semi-annually;(twice a year)? Note: Do not put $ sign in your answer. Simply write the number;in the answer box.;1 points;Question 8;1. If you can double your;money in 19 years, what is the implied annual rate of interest, given that;compounded in quarterly? Note: give your answer in percentages. Note: Do not;put % sign in your answer. Simply write the number in percentages in the answer;box.;Question 10;1. How many years it will;take you to quadruple (means 4 times) your money if you can earn 7% each year?;Note: Do not write "years" in your answer. Simply write the number in;the answer box.;1 points;Question 11;1. What is the future value;of $359 invested for 10 years at 13% if interest is compounded quarterly? Note;Do not put $ sign in your answer. Simply write the number in the answer box.;1 points;Question 12;1. What is the future value;of annual payments of $6,087 for 17 years at 5 percent?;1 points;Question 13;1. In order to buy a house;you take a loan of 100,000 at 7.5% for a period of 13 years. Compute the;balance remaining at the end of 5 years.;Do not enter the symbol $ in your answer. Enter;your answer as a positive number. Simply enter the answer rounded off to two;decimal points.;1 points;Question 14;1. The Perpetual Life;Insurance Co is trying to sell you an investment policy that will pay you and;your heirs $12,471 per year forever. Suppose the Perpetual Life Insurance Co.;told you the policy costs $180,064. At what interest rate would this be a fair;deal? Just enter the number in percentages up to 2 decimal points. Do not enter;% in the answer box.;1 points;Question 15;1. If you can triple your;money in 18 years, what is the implied rate of interest? Note: Do not put %;sign in your answer. Simply write the number in percentages in the answer box..;1 points;1 points;Question 17;1. What is the future value;of $4,357 invested for 29 years at 18% if interest is compounded semi-annually?;Note: Do not put $ sign in your answer. Simply write the number in the answer;box.;1 points;Question 18;1. How many years it will;take to grow your money from $3,308 to $9,537 if you can earn an interest of;15% compounded quarterly? Note: Do not write "years" in your answer.;Simply write the number in the answer box.;1 points;Question 19;1. What is the future value;of $661 for 15 years at 6 percent if interest is compounded semi-annually?;Note: Do not enter "$" in your answer. Simply write down the number;that you get as your answer.;1 points;Question 20;1. 026;Say, you deposit $1,493 in a bank for 17 years. What is the amount you will;have in the bank at the end of 17 years if interest of 7 % for first 10 years;and interest of 9 % for the remaining years? Note: Do not put $ sign in your;answer. Simply write the number in the answer box.;1 points;Question 21;1. How much do you need to;invest today in order to have $4,498 at the end of 28 years if you are sure to;earn an interest at the rate of 15%, if interest is compounded monthly? Note;Do not put $ sign in your answer. Simply write the number in the answer box.;1 points;Question 22;1. Kelly starting setting;aside funds 6 years ago to buy some new equipment for her firm. She has saved;$607 each quarter and earned an average rate of return of 5 percent. How much;money does she currently have saved for this purpose?;1 points;Question 23;1.;Assume interest rate of 3%. A company receives cash flows of $967;at the end of year 5, $316 at the end of year 7, and $624 at the end of year;10. Compute the future value of this cash flow stream.;Do not enter the symbol $ in your answer. Simply;enter the answer rounded off to two decimal points.;1 points;Question 24;1. How many years it will;take to grow your money from $3,641 to $7,248 if you can earn an interest of;13% compounded monthly? Note: Do not write "years" in your answer.;Simply write the number in the answer box.;1 points;Question 25;1. How much do you need to;invest today in order to have $9,131 at the end of 25 years if you are sure to;earn an interest at the rate of 9%, if interest is compounded quarterly? Note;Do not put $ sign in your answer. Simply write the number in the answer box.;1 points;Question 26;1. What is the future value;of quarterly payments of $562 for 14 years at 6 percent?;1 points;Question 27;1.;If you receive $110 at the end of each year for the first three;years and $794 at the end of each year for the next three years. What is the;present value? Assume interest rate is 4%.;Hint: This is an uneven cash flow problem. Use;the CF function and solve for NPV to get the answer.;Just enter the number up to 2 decimal points. Do;not enter $ in the answer box.;1 points;Question 28;1. 027;Say, you deposit $4,879 in a bank for 17 years. What is the amount you will;have in the bank at the end of 17 years if interest of 6 % compounded monthly;for first 9 years and interest of 6 % compounded quarterly for the remaining;years? Note: Do not put $ sign in your answer. Simply write the number in the;answer box.;1 points;Question 29;1. 023A;If you can double your money in 23 years, what is the implied annual rate of;interest, given that compounded semi-annually? Note: give your answer in;percentages. Note: Do not put % sign in your answer. Simply write the number in;percentages in the answer box.;1 points;Question 30;1. Barrett Pharmaceuticals;is considering a drug project that costs $174,959 today and is expected to;generate end-of-year annual cash flows of $13,959, forever. At what discount;rate would Barrett be indifferent between accepting and rejecting the project?;Just enter the number in percentages up to 2;decimal points. Do not enter % in the answer box.;1 points;1 points;Question 33;1. Assume interest rate of;6%. Suppose that you receive $97,408 at the end of each year for 4 years.;Suppose that this cash flow starts at the end of the fourth year. Compute the;present value.;Do not enter the symbol;$ in your answer. Simply enter the answer rounded off to two decimal points.;1 points;Question 34;1. What should you be willing to;pay in order to receive $259 annually forever, if you require 5% per year on;the investment?;Just enter the number up to 2 decimal points. Do;not enter $ in the answer box.;1 points;Question 35;1. How many years it will;take you to double your money if you can earn 9% each year, given that;compounding is quarterly? Note: Do not write "years" in your answer.;Simply write the number in the answer box.;1 points;Question 36;1. Assume interest rate of;4%. A company receives cash flows of $81,403 at the end of years 4, 5, 6, 7;and 8, and cash flows of $289,772 at the end of year 10. Compute the future;value of this cash flow stream.;Do not enter the symbol $ in your answer. Simply;enter the answer rounded off to two decimal points.

 

Paper#42014 | Written in 18-Jul-2015

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