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.
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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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