Question: WITH PROCESS: A construction project has the following data: initial disbursement $ 40,000. The required rate of return is 9% per year. Net cash income

WITH PROCESS:

A construction project has the following data: initial disbursement $ 40,000. The required rate of return is 9% per year.

Net cash income for the following years:

1st. Year $ 8,000 =

2nd. Year $ 10,500 =

3rd. Year $ 19,000 =

4th. Year $ 18,800 =

5th. Year $ 18,800 =

Net Present Value _____________ Determine the payback present value _______

PREPA is offering a $ 45 Bonus, payable semi-annually, for the next 20 years. The prevailing market interest rate is 8%. What is the value of the Bonus? Present value $ ____________ is sold with a premium or discount ______________

El Sol Inc. is offering its bonds on the market at 8% annual interest but ensures that they are paid semi-annually for 7 years. The prevailing market interest rate is currently 10%. What is the value of the bonds? Present value $ __________ sold at a premium or discount____________

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

A construction project has the following data: initial disbursement $ 400,000. The required rate of return is 9% per year. Net cash income for the following years: 1st. year $ 87,000 = 2nd. years $...

7. What is the net profit for a project with $ 20,000 of disbursement expecting to produce income of $ 6000 in the first three years and $ 3000 in the following two years for a total of 5 years, at...

A construction project has the following data: initial disbursement $ 400,000. The required rate of return is 6% per year. Calculate the present value of the following quantities. Net income in the...

A construction project has the following data: initial outlay $ 400,000. The required rate of return is 9% per year. Net cash income for the following years: 1st. year $ 80,000 = 2nd. years $ 100,000...

A construction project has the following data: initial outlay $40,000. The required rate of return is 9% per annum. Net cash income for the following years: 1 Year $ 8,000 = 2 Year $ 10,500 = 3rd...

please answer 9 Case study 1. Sung Industries manufactures tracking devices. They use a job order costing system. Manufacturing overheads are absorbed based on direct labor hours. The budgeted...

I need help with questions 9 and 10 in the attached file. BBOA3010 Corporate Finance - assignment 2014 Answer all questions. 1. Assume the 1-year spot rate is 4%, the 2-year spot rate is 4.8% and the...

Styles Editin In this question, you are hired by Palumbo & Entrup Partners (PE) to decide whether it is worthwhile to purchase a private firm, Young LLC. Young LLC produces a type of communicating...

Do the excel file as well! In this question, you are hired by Palumbo & Entrup Partners (PE) to decide whether it is worthwhile to purchase a private firm, Young LLC. Young LLC produces a type of...

Note: Where discount factors are required use only the 4 decimals present value tables that appear in the module guide. 5.1 REQUIRED Use the information provided below to calculate the following:...

Asteroid Collision Two asteroids of equal mass in the asteroid belt between Mars and Jupiter collide with a glancing blow. Asteroid A, which was initially traveling at 40.0 m/s, is deflected 30.0"...

Define the terms learning, reinforcement, punishment, and extinction.

When a company has financial leverage: Multiple Choice ROI will be greater than ROE. niki is greater then if Pere wasmt acy leverape. the company will always have a higher ROE pan t would wehout...

A company is preparing completing their Cash Budget. The following data has been prepared for cash receipts and payments. January February March Cash receipts $1,061,200 $1,182,400 $1,091,700 Cash...