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Corporate Finance Quiz 4

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Corporate Finance Quiz 4;Question 1.;023A:If you can double your money in 22 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.?Answer;1 points;Question 2.;027:Say, you deposit $1,138 in a bank for 18 years. What is the amount you will have in the bank at the end of 18 years if interest of 6 % compounded monthly for first 5 years and interest of 10 % compounded quarterly for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 3.;How many months it will take to grow your money from $4,760 to $7,928 if you can earn an interest of 11% compounded monthly? Note: Do not write "months" in your answer. Simply write the number in the answer box.?Answer;1 points;Question 4.;If you put $700 in a savings account with a 10% nominal rate of interest compounded monthly, what will the investment be worth in 21 months (round to the nearest dollar)??Answer..;a..;$770..;b..;$1,176..;c..;$827..;d..;$828..;e..;$833.;1 points;Question 5.;How much do you need to invest today in order to have $4,555 at the end of 9 years if you are sure to earn an interest at the rate of 13%, if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 6.;How much do you need to invest today in order to have $6,756 at the end of 6 years if you are sure to earn an interest at the rate of 10%, if interest is compounded monthly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 7.;How many years it will take to grow your money from $4,168 to $8,282 if you can earn an interest of 6% compounded quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.?Answer;1 points;Question 8.;Assume interest rate of 12%. A company receives cash flows of $596 at the end of year 5, $238 at the end of year 7, and $542 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.????Answer;1 points;Question 9.;Consider a 10-year loan with monthly payments at 10%. If the loan amount is $250,000, compute the Interest paid during the 6 th year.? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.??Answer;1 points;Question 10.;The ABC Company is considering a new project which will require an initial cash investment of $10,754. The projected cash flows for years 1 through 4 are $9,870, $5,696, $9,263, and $5,029, respectively. If the appropriate discount rate is 3%, compute the NPV of the project.? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.???Answer;1 points;Question 11.;What is the future value of $186 for 14 years at 6 percent if interest is compounded semi-annually? Note: Do not enter "$" in your answer. Simply write down the number that you get as your answer.?Answer;1 points;Question 12.;If you can triple your money in 16 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..?Answer;1 points;Question 13.;Barrett Pharmaceuticals is considering a drug project that costs $180,372 today and is expected to generate end-of-year annual cash flows of $11,811, 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.??Answer;1 points;Question 14.;Assume interest rate of 7%. Suppose that you receive $73,343 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.?Answer;1 points;Question 15.;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.??Answer;1 points;Question 16.;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.??Answer;1 points;Question 17.;How much do you need to invest today in order to have $6,469 at the end of 11 years if you are sure to earn an interest at the rate of 8%? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 18.;How many years it will take you to quadruple (means 4 times) your money if you can earn 11.63% each year? Note: Do not write "years" in your answer. Simply write the number in the answer box.?Answer;1 points;Question 19.;If the effective rate is 17%. 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.?Answer;1 points;Question 20.;What is the future value of annual payments of $2,281 for 9 years at 4 percent??Answer;1 points;Question 21.;If you receive $389 at the end of each year for the first three years and $595 at the end of each year for the next three years. What is the present value? Assume interest rate is 5%.?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.??Answer;1 points;Question 22.;What is the future value of $4,935 invested for 7 years at 16% if interest is compounded quarterly? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 23.;Kelly starting setting aside funds 4 years ago to buy some new equipment for her firm. She has saved $3,645 each quarter and earned an average rate of return of 8 percent. How much money does she currently have saved for this purpose??Answer;1 points;Question 24.;How many years it will take you to double your money if you can earn 14% each year, given that compounding is quarterly? Note: Do not write "years" in your answer. Simply write the number in the answer box.?Answer;1 points;Question 25.;The ABC Company is considering a new project which will require an initial cash investment of $5,066. The project will produce no cash flows for the first 5 years. The projected cash flows for years 6 through 9 are $2,852, $4,427, $6,992, and $4,303, respectively. If the appropriate discount rate is 7%, compute the NPV of the project.? Enter your answer rounded off to two decimal points. Do not enter $ in the answer box.??????Answer;1 points;Question 26.;How many years it will take to grow your money from $3,573 to $6,334 if you can earn an interest of 6% compounded monthly? Note: Do not write "years" in your answer. Simply write the number in the answer box.?Answer;1 points;Question 27.;What is the effective rate of 10% compounded monthly? Do not enter the symbol % in your answer. Simply enter the answer in percentages rounded off to two decimal points.??Answer;1 points;Question 28.;026:Say, you deposit $1,802 in a bank for 16 years. What is the amount you will have in the bank at the end of 16 years if interest of 3 % for first 6 years and interest of 8 % for the remaining years? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 30.;What is the future value of $4,515 invested for 18 years at 19% if interest is compounded semi-annually? Note: Do not put $ sign in your answer. Simply write the number in the answer box.?Answer;1 points;Question 31.;What is the future value of quarterly payments of $779 for 18 years at 4 percent??Answer;1 points;Question 32.;If you can double your money in 23 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.?Answer;1 points;Question 33.;The Perpetual Life Insurance Co is trying to sell you an investment policy that will pay you and your heirs $14,581 per year forever. Suppose the Perpetual Life Insurance Co. told you the policy costs $156,868. 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.??Answer;1 points;Question 34.;Today, you are purchasing a $1,362 3-year car loan at 14 percent. You will pay annually at the end of each year. What is the amount of each payment??Answer;1 points;Question 35.;What should you be willing to pay in order to receive $606 annually forever, if you require 10% per year on the investment??Just enter the number up to 2 decimal points. Do not enter $ in the answer box.??Answer;1 points;Question 36;What is the future value of $2,627 invested for 22 years at 6% 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.

 

Paper#78310 | Written in 18-Jul-2015

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