## Monday, January 6, 2014

### Finance

Assignment for CH2, Financial Man epochment nary(prenominal)6 Q: Investment greet: \$1548, sempiternity C=\$138, r=9%, NPV=? A: PV of perpetuity = C/r = \$138/9% = \$ 1533.3333 NPV = PV investing approach = \$ 1533.3333 - \$1548 = -\$ 14.6667 no. 8 Q: r = 10% A: a: PV of perpetuity = C/r = \$1 / 0.1 = \$10 b: It is a slow up perpetuity starting at the beginning in course 8 PV = (C / r ) *1/ (1+r)? = * = \$5 d: PV of rente = c = 1* = 4.8683 e: PV of growing perpetuity = = = \$200000 No. 11 Q: r= 0.06, c= \$10 million A: compounding a: Compounding Annually: cling to after(prenominal) 4 age= \$10 million (1+ 0.06)= \$12.6248 million b: Compounding monthly: Value after 4 age = \$10 million (1+ 0.06/12)= \$ 12.7049 million c: Compounding endlessly: Value after 4 forms = \$10 million* e= \$10 million* 2.718= \$ 12.7121 million No. 13 a: DF1= 0.905= , r= 0.1049=10.5% b: r= 0.105, DF2= = = 0.8189 c: AF2= DF1 + DF2= 0.905+0.8189=1.7239 d: PV of annuity = c * AF3, AF3= PV/C= 2.465 e: DF3= AF3-AF2= 2.465-1.7239=0.7411 No. 18 Q: investment hail= \$8 million, revenue per social class= \$5 million, make up per category = \$ 4 million Refit cost at 5th year = \$2 million, refit cost at tenth year = \$2 million iota descend at 15th year= \$1.5 million, DF=8% A: NPV= PV- investment Gain per year= \$ 1 million, PV of gain as annuity= \$(5-4)* =\$ 8.5595million PV of scrap gain= = \$0.4729milion PV of refit cost at 5th year= = \$ 1.3612million PV of refit cost at 10th year= =\$ 0.9264million NPV= \$ 8.5595million + \$0.4729milion-\$ 1.3612milli on- \$ 0.9264million- \$8 million = -\$ 1.255! 2million No. 20 Q: r=0.08, PV= \$20000, t=12, c=? A: PV of annuity = \$20000= C * = c* 7.5361 C= \$20000/7.5361= 2653.89 No. 38 a: PV of growth perpetuity = = = \$14.28 million b: PV of growth annuity = C* =\$2 * = \$ 13.3471 millionIf you want to descend a full essay, order it on our website: OrderCustomPaper.com

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