Blooper Industries must replace its magnoosium purification system. Quick & Dirty Systems sells a relatively cheap purification system for $16 million. The system will last 4 years. Do-It-Right sells a sturdier but more expensive system for $18 million; it will last for 5 years. Both systems entail $3 million in operating costs; both will be depreciated straight-line to a final value of zero over their useful lives; neither will have any salvage value at the end of its life. The firm’s tax rate is
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TVM Assignment 1. $5,500 deposited four years ago has grown to $7,000. What semiannual compounded rate of interest has the bank been paying you? PV = 5,500 N = 4 x 2 = 8 Pmt = - FV = 7,000 I = 3.06% 2. The Costanza Resort borrowed $125,000 from the Ross Bank to pay for a new air conditioning system. The loan is for a period of 5 years at an interest rate of 10% and requires 5 equal end-of-year payments that include both principal and interest on the outstanding balance. What will
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$100 for four years at 10% interest • how does your investment evolve over time? beginning year balance year 1 year 2 year 3 year 4 100.00 110.00 121.00 133.10 interest 10.00 11.00 12.10 13.31 end year balance 110.00 121.00 133.10 146.41 =100 × (1 + 0.10) =100 × (1 + 0.10)2 =100 × (1 + 0.10)3 =100 × (1 + 0.10)4 • the future value (FV) of $100 invested for four years at 10% is 100 × (1 + 0.1)4 • general principles of compounding: – convert dollars today into dollars in N years: multiply with
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Value and Capital Budgeting TUI University FIN301-Principles of Finance December 26, 2011 Abstract In this paper I will calculate the present value of income from a gold mine. Present Value and Capital Budgeting Part I A. Suppose your bank account will be worth $15,000.00 in one year. The interest rate (Discounted Rate) that the bank pays is 7%. is the present value of your bank account ? What would the present value of the account be if the discount rate
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S&P over the six months studied from May 5, 2010 to November 5, 2010, Exxon’s stock prices clearly show a correlation to the market prices. With this correlation, Exxon’s prices ebb and flow with the market, but Exxon’s prices in the short-run versus longer periods of time seem to move up and down more vigorously where as the market remains more consistent on a short-term basis. See attached chart. Exxon Mobil is one company who over the past few years despite the recession has been able
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return of 15% (Task 4) and (2) the firm’s cost of capital (Task 5). Task 4. Capital Budgeting for a New Machine A few months have now passed and AirJet Best Parts, Inc. is considering the purchase on a new machine that will increase the production of a special component significantly. The anticipated cash flows for the project are as follows: Year 1 $1,100,000 Year 2 $1,450,000 Year 3 $1,300,000 Year 4 $950,000 You have now been tasked with providing a recommendation for the project
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------------------------------------------------- ------------------------------------------------- ASSIGNMENT ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- COURSE: HAME507-01 Sep 17, 2014 Mastering the Time Value of Money
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state : married Education Secondary High School Section Sicence From Mutah High School BSC in Computer Science From Mutah University in 2004 Training • Network ( windows server 2003 and 2008 , ISA server 2004 and02006 , Exchange server ) • Design of Internet sites on Programming Languages of ASP.NET and PHP Experience • hava designed a web Site for mutah university registration • from 1 November 2004 till 30 June 2005 instructor at Ram training Center . My
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soundcloud (www.soundcloud.com). The basic concept of the cloud is that you can upload your documents or whatever you need and use them later no matter where you are located. As you can see from the name it is about music or sounds. I use cloud because it is easy to use with user-friendly interface and I can reach it from everywhere the two things I need are only PC/laptop/tablet/smartphone and interned connection. The cloud has unlimited storage, all the files are stored on servers. This means that everybody
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following information is going to contain information from Andre’s hair styling. The information is going to detail the contribution margin, the annual break-even point, as well as the operating income. Fixed costs consist of the barbers so to figure that out we must take their nine dollars and ninety cents an hour that they are paid and multiply that by the barbers forty hour work week and then multiply that by the fifty weeks that they work a year and then again multiply by the five different barbers
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