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npv and irr

An electric utility is considering a new power plant in northern Arizona. Power from the plant would be sold in the Phoenix area, where it is badly needed. Because the firm has received a permit,...

Project payback

Project K costs \$55,000, its expected cash inflows are \$12,000 per year for 11 years, and its WACC is 12%. What is the project's payback? Round your answer to two decimal places

Modified internal rate of return

Project X costs \$1,000, and its cash flows are the same in Years 1 through 10. Its IRR is 18%, and its WACC is 12%. What is the project's MIRR? Round your answer to two decimal places

Discounted payback

Project K costs \$55,000, its expected cash inflows are \$13,000 per year for 8 years, and its WACC is 7%. What is the project's discounted payback? Round your answer to two decimal places.

Internal rate of return

Project K costs \$62,994.57, its expected cash inflows are \$13,000 per year for 11 years, and its WACC is 9%. What is the project's IRR? Round your answer to two decimal places

A bond has a face value of \$2,000 redeemable in 5 years at a coupon rate of 8%. Construct the premium amortization schedule if the bond is to be purchased to yield 6%.

A \$2,000 bond is redeemable at a coupon rate of 6.5% in 10 years. Would you purchase it at premium or discount price if you want it to yield 8%?

yield rate

Find the yield rate for a bond purchased at a quoted price of \$2,250 redeemable in 10 years. The face value is \$2,000 at a coupon rate of 6 1/4%.

bonds/purchase price

A \$5000 bond with a semiannual coupon at 8.5% is redeemable at par value on November 1, 2015. Find the purchase price on July 15, 2013 to yield 7.5%.

stocks/yield on investment/net investment

1. A man invested in 500 shares of a local business stock selling for \$15.75 a share. A while later he sold half of his shares at \$17.25. Calculate his investment rate of return and his capital gain...

Purchase price of bond

What is the purchase price of a \$1,000 bond that is maturing in 20 years at 12% interest if the required rate of return is 15%?

Preferred stock

IF the required rate of return is 9 3/3 % and the dividend for preferred stock is \$6.50, what would be the value of this preferred stock?

stocks/rate of return

An investor is contemplating investing heavily in a stock whose dividend is \$27 per share but expected to grow by 18% for the next 3 years and by 12% after that. Find the current price of this stock...

Stocks/yield

A company is selling its stock at \$17.95 per share and expecting it to grow by 5%. It usually distributes 50% of its earnings per share as dividends. Find the value of his stock if the earning per...

rule of 78 method and level method

Lynn had a \$2,000 personal loan at 9 1/2% for 18 months. Suppose that she is given the choice between the level method and the rule of 78 method and that she wants to pay off the remaining balance...

amortization schedule for mortgage loan

For a mortgage loan of \$110,000 and a down payment of \$20,000 financed at 10% for 25 years, construct the amortization schedule for the first years. Show five columns: payment number, monthly interest...

market value formula method and table method

21. A condominium is purchased for \$80,000 with a down payment of \$12,000 at an annual interest rate of 9% for 15 years. Calculate the unpaid balance after 10 years of making payments.   22...

semiannual payment to finance \$200,000 in a sinking fund

What is the semiannual payment to finance \$200,000 in a sinking fund that pays 12% annual interest? Also, calculate the total deposits of the sinking fund and the interest earned by the semiannual...

Sinking fund

Jack borrowed \$25000 at 8% for 5 years. He also opened a sinking fund account that pays 6%. How much should he pay for the interest on his loan? What size deposit should he make to his sinking fund...