explain the benefits offered by each of the 4 criteria; payback period, discounted payback, NPV, IRR

Q: that money can earn 9% ompounded quarterly for 2 years, which as a greater future value for a gadget...

A: As there is more compounding the more is effective rate and more is the future value of money. And l...

Q: What are the functions of Financial Market

A: Financial market:-  A market in which financial assets can be bought and sold when they facilitate t...

Q: Debt Market value = $450,000 pre-tax cost of debt is 8%. shares are trading at $12 per share with 10...

A: Companies raise funds from a variety of external sources to run the business or pay their financial ...

Q: A stock has had the following year-end prices and dividends: Year Price Dividend $ 64.33 71.20 1 2 $...

A: Return means earning additional investment amount during the period. Return can be in the form of re...

Q: ield changes even though the income from the coupo

A: Step 1 The level of a bond coupon is equal to its benefit in maturity if its purchase price is equal...

Q: uivalent annual cost is determined to be -$

A: Equivalent annual cost (EAC) is a method used to calculate the yearly cost of several options, compa...

Q: ABM Enterprise would like to evaluate/analyze an investment proposal. Given the following: Investmen...

A: Initial Investment = 450,000 Discount Rate = 14% Dividend / Revenue = 100,000 for 1st year and inter...

Q: Consider the 20-year fixed-rate home loan of $185,500 with an interest rate of 6.75%. What is the mo...

A: Payment per period can be calculated using PMT function in excel.   PMT(rate, nper, pv, [fv], [type]...

Q: U.S. Steal has the following income statement data:   Units Sold Total Variable Costs Fixed Costs T...

A: Operating leverage is the ratio of contribution to the operating income.

Q: grandmother 3145 unte she repays this loan in full, interest free. a. Write the model for the amount...

A:

Q: ABC Corporation invested in one of DEF's ordinary shares that has a par value of P500 and a market v...

A: Share price Share price is the current market price of the share. It is the price of the share at wh...

Q: Question 2 a. A bond that matures in one year has a $500 face value and a $60 coupon. What is the p...

A: Bonds are the debt securities which are issued by the corporations or the government to arrange the ...

Q: he nominal exchange rate between the Australian Dollar and the Euro in equilibrium is 0.5(1 AUD buys...

A: The covered interest rate parity: The covered interest rate parity states the relationship between t...

Q: One Corporation has two potential suppliers. Both are supplying the items at similar list prices and...

A: Trade credit: It refers to the credit paid to the supplier by its customer on the completion of cred...

Q: Cenderawasih Holdings is evaluating two (2) mutually exclusive projects that require an initial inve...

A: Here, Cost of Capital is 16%

Q: What kind of information is gathered from a valid and trusted source and can be depended upon to be ...

A: Accounting information is very useful information which is being collected for the purpose of report...

Q: a. Use the Black-Scholes formula to find the value of the following call option. (Do not round inter...

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...

Q: at is the present worth and future of P6000 deposited at the end of every month for 4 years if the i...

A: The more is compounding more is future value and less is the present value of money due to the fact ...

Q: SITUATION 6: A car has a window price of 3.2M, if a man would be willing to purchase the car by payi...

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...

Q: What is the preferred order of reconciliation? cost, sales, income O income, cost, sales sales, inco...

A: Income is defines as total costs of the project deducted from total sales from the project.  

Q: Mrs. Garcia received two offers on a lot that he wants to sell. Ms. Dela Cerna has offered ₱50,000.0...

A: Data given: Ms. Dela Cerna has offered ₱50,000.00 and ₱1 million lump sum payment 5 years from now. ...

Q: 6% effemive RM1000 is invested in a fund for 3 years at 6% simple interest rate for the first intere...

A: We have to calculate the  Interest earned in the second year and the rate for the second year is 6% ...

Q: A regional municipality is studying a water supply plan for its tri-city and surrounding area to the...

A: Initial Cost = 25 Million Interest Rate = 6%  

Q: A regional municipality is studying a water supply plan for its​ tri-city and surrounding area to th...

A: Cost = $30 million per year for 5 years Interest Rate = 9% maintenance and repairs cost = $3 ​millio...

Q: Using AFN formula in financial forecasting approach, given the following accounting information assu...

A: The liabilities which are referred as the obligations of business entity when immediately changes be...

Q: wn borrowed RM5 000 from a bank on 30th March 2020.The amount to be pai um,find the date of repaymen...

A: In Banker's rule there is consideration that there 360 days in year and calculations are done based ...

Q: The Morgan Corporation has two different bonds currently outstanding. Bond M has a face value of $50...

A: The present value of bond is calculated by discounting all future payments using the required rate o...

Q: Assume that you are considering the purchase of a 20-year, noncallable bond with an annual coupon ra...

A: Present Value can be calculated using PV function in excel   PV (rate, nper, pmt, [Fv], [type]) Rat...

Q: The current stock price of National Co. is P89. The current dividend for National Co. is P2.50, and ...

A: Required return = [Dividend(1 + Growth rate) / Current price] + Growth rate where, Dividend = P2.50 ...

Q: 7. An asset was purchased for P 150,000 and retired at the end of 15 years with a salvage value of P...

A:

Q: A. On the 1st of June 2011 GoodTaste purchased a new freezer for €23,000 of which €2,000 was the VAT...

A: Since multiple questions are involved , We will answer 1st question for you.

Q: Financial managers should consider this when.improving the financials of the firm

A: Financial managers function within the domian of financial management and here financial managers ma...

Q: Plz solve it within 30-40 mins I'll give you multiple upvote

A: Let the par value = P Coupon (C) = (6% of P) / 2 = 0.03P YTM = 8% per annum  n = 15 years = 30 perio...

Q: Exercise 2 Masikap has an investment opportunity costing P180,000 that is expected to yield the foll...

A: Payback period is the time taken by the investment to recover the cost of the investment. The paybac...

Q: Find the maturity date, maturity value and proceeds of the below promissory note: Face Date Term Int...

A: A promissory note is a legal promise by one party to another party to pay a specific amount after a ...

Q: Mariam borrows RM67,000 from you today and agrees to repay RM183,229 with a 9 percent annual interes...

A: Loan amount (PV) = RM67000 Repayment (FV) = RM183229 Interest rate (r) = 9%

Q: The company invested $300,000 on September 30, 20XA at 4% for 4 months. Determine interest revenue f...

A:

Q: fane has $1L025 and plan to purchase a 5-year certificate of degosit KD tht y interest, conmpounded ...

A:

Q: 9. Joe's starting salary as a mechanical engineer is around $80,000. Joe is planning to place a tota...

A: Salary = $80000 Annual deposit = 80000*10% = $8000 Annual growth = 5% Period = 30 Years Interest rat...

Q: Suppose you invest $25 per week into an account that earns 2% compounded weekly.  You make the depos...

A:

Q: 3. A manufacturer has a fixed cost of $110,000 and a variable cost of $22 per unit made and sold. Se...

A:

Q: . The City of Cebu plan to improve the water system distribution of the city. The estimated cost f t...

A: When a bond is issued, the issuer is obliged to pay two payments- a) Coupon payment at the end of ev...

Q: Hazli borrows an education loan from Usaha Bank for RM24,000. The payments will be made in installme...

A: Loan amount (PV) = RM24,000 Interest rate (r) = 10% Number of annual payments (n) = 5

Q: Infosys technologies inc. An Indian technology company, reported income of $419 million this year. A...

A:

Q: First bank offers you a car loan at an annual interest rate of 10% compounded monthly. What effectiv...

A:

Q: y. How long will it take for her funds to triple?

A: Present Value: It represents the present worth of the future annuity payments or the future sum of t...

Q: To expand its business, the ABC factory would like to issue a bond with par value of P1,000, coupon ...

A: The value of the bond is calculated as present value of cash flows. 

Q: 27. CAPM. The Treasury bill rate is 4%, and the expected return on the market portfolio is 12%. Acco...

A: CAPM means Capital Asset Pricing Model. This model establishes relationship between systematic risk ...

Q: 5. Today, an antique car that originally cost $3,773 in 1955 is valued today at $69,500 if in excell...

A: This question requires to find the value of unknown variable using the given values.

Q: Exercise 1 Masipag has an investment opportunity costing P300,000 that is expected to yield the foll...

A: Here we are provided with an investment opportunity which has an initial cash outflow and then cash ...

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.