Q: 1. What is the payback period
A: Payback Period is the Period the company is able to recover the investment it has made for a project…
Q: Increasing interest expense will have what effect on EBIT?
A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…
Q: What is meant by the concept of “potential savings (profits)”?
A: Profit is the total revenues less all costs and expenses. In other words, profit is the net earnings…
Q: e present value annuity factor
A: An annuity factor is a process of determining the amount which can be withdrawn initially from the…
Q: pay back period?
A: Pay back period = Number of years fully covered + (Remaining part of investment to be covered/Next…
Q: Present using the rate of return method (ROR) with the formula. If the NPV is used to determine the…
A: Here, Net Cash Flow is 31250 Rate of Interest is 10% Initial Investment is 100000 NPV is 18462…
Q: Which payback method has a profit element?
A: Payback method is a capital budgeting technique which is used to evaluate various investment…
Q: Ive ye is the payback period for - If their acceptance peric
A: The Payback period is the amount of time needed to earn back the cost of an investment. This method…
Q: Define annuity due
A: Annuity due is an arrangement of payments that are equal as well these payments are paid or received…
Q: payback period c
A: Payback period is the number of years required to recover the initial cost of an investment project.
Q: Comparison of NPV, IRR or Payback period
A: The net present value (NPV) is the difference between the present value of cash inflows and…
Q: Explain present value of annuity, PVA
A: An annuity is the series of payments which is received or paid for a fixed period of time. The equal…
Q: Calculate the insurable earnings.
A: Answer:
Q: 1. Distinguish between payback and discounted payback period.
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: CONCEPT MAPPING: Make a concept map from the given words below by arranging the word into an idea…
A: Concept mapping refers to the representation of the information in a visual form and it could be in…
Q: What does the annuity factor indicate?
A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…
Q: Calculate the Discounted Payback Period.
A: Information Provided: Tax rate = 30% Cost of capital = 15% EBIT = 15% of sales Interest expense = 5%…
Q: The internal rate of return is: discount rate that makes the profitability index (PI) greater than…
A: IRR and PI are important tools of capital budgeting along with NPV. IRR refers to the internal rate…
Q: CONCEPT MAPPING: Make a concept map from the given words below by arranging the word into an idea…
A: Annuity can be defined as the payments series that are made at equal intervals. It can be classified…
Q: e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary…
A: Annuities are instruments that involve fixed payments. There are mainly two types of annuities i.e.…
Q: Interest cost is calculated by multiplying the______by the ______?
A: Interest cost is calculated by multiplying the Principle amount by one plus the annual interest…
Q: The net present value f
A: Since you have posted multiple independent questions in the same request, we will solve the first…
Q: Question: What type of Annuity is indicated in the problem above?
A: Annuity Due: It represents the annuity where the periodic payments are made at the beginning of…
Q: ired to remit this payment?
A: As per IRS ,if the due date for payment of federal tax falls on Saturday , Sunday or national…
Q: ernal rate of return and the discount rate turn pany's discount rate or internal rate of return unt…
A: To find the correct option as,
Q: What is the single-payment present-worth factor?
A: The present value is the value of the sum received at time 0 or the current period. It is the value…
Q: a. Pay-back period b. Discounted Pay-back period c. Internal Rate of Return (IRR)
A: Payback period is the period within which the sum invested by the company in a project will be…
Q: What is the factor form equation to get EUAB/Annuity (A) ?
A: Interest Rate = 5% N = 7 Cash Flows: Year Cash Flow 0 1 2 3 4 1000.00 5…
Q: What is net interest margin(NİM)?
A: There are various profitability ratios
Q: What are the features of the discounted payback period
A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…
Q: What is the Net Interest Margin (NIM)
A: Net Interest margin (NIM) is percentage of difference between interest income earned on loans and…
Q: Define the term the annuity factor?
A: An annuity factor is financial value that, when multiplied by a periodic amount, then it shows the…
Q: k in deferred annuity
A: k = nt - 1 where k = The number of compounding periods in a year n = number of years we intend to…
Q: How much will be the total amount of remittance to SSS?
A: Remittance of SSS SSS is a type of retirement benefit which are provided to the employees after the…
Q: r payoff be? What will your profit be?
A: Pay off refers to the gain or loss that buyers make from trading a stock option. There are three…
Q: why annuity due have larger value than ordinary annuity? with exampl
A: Annuity Due: Annuity due relates to a set of equal payments made at the identical interval at the…
Q: The discount on one unit negotiable substance in one unit of time. O rate of interest O present…
A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…
Q: What is future value of annuity, FVA?
A: The concept that helps to evaluate the future or present value of the cash flow is term as the time…
Q: Define discounted payback period
A: The payback Period is the time duration taken to reap back the amount invested in the project. The…
Q: What is the discounted payback period?
A: Discounted payback period is period for which present value of cash flow is equivalent to initial…
Q: Which factor sets an upper limit on how much can be paid for savings?
A: The expected return seems to be the benefit or disadvantage anticipated by a participant on…
Q: e future value nd an initial
A: Introduction : The given question relates to the concept of compounding. Compounding can be…
Q: What is premium on forward rate?
A: A forward rate is referred as an interest rate which is applicable on financial transactions which…
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- Tala McLouf, a 21-year-old BBA graduate, likes to plan for her future ahead, and would like to save $47.50 every week for her retirement later on. At the end of each year, Tala would invest her total accumulated savings into an account at the local credit union paying her a yearly interest rate of 8.25%. How much money will Tala be able to save per year? How much money will Tala have saved when she reaches 55 years old? How much would Tala have saved by the time she is 60 years old, if she starts investing for her retirement at the age of 40 after paying off the mortgage for her house in Los Angeles? Even if Tala starts saving at 40, she would still like to have the same amount of money in her account when she is 60 as she would have had, had she started saving back when she was 21.A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $30,000 saved up for when she goes to college in 17 years, assuming the account earns a 4% return. Annual deposit: $Caitlyin is saving to buy a house.She plans to deposit $12, 000into her account today and 1year from now, and then $17, 000 both 2 and 3 years fromnow. The savings account willpay 4% interest. How muchmoney will she have after herlast deposit?
- A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $80,000 saved up for when she goes to college in 15 years, assuming the account earns a 8% annual return. Annual deposit:Arthur wishes to have 80,000 in her bank account. How much suould she deposit in a bank account that pays 8% compounded quarterly so that after 6 years and 5 months, she can have her desired money? Choices are: 31, 889.7541648, 110.24584 and 50,000A man wants to set up a 529 college savings account for his granddaughter. How much would he need to deposit each year into the account in order to have $40,000 saved up for when she goes to college in 16 years, assuming the account earns a 4% return.
- A new mother would like to start a college fund for her newborn daughter. She makes quarterly deposits of $400 into a college fund that earns 6% compounded quarterly for the next 18 years. How much will her daughter have available in her college fund when she turns 18? $ Round to the nearest dollar What is total amount the mother deposited into the fund over the 18 years? $ Round to the nearest dollar How much interest was earned over the 18 years? $ Use the WHOLE DOLLAR AMOUNTS you entered in as your answers above. 4 Round to the nearest dollarAini wishes to have 93,000USD to purchase a car in 6 years as part of her financial goals. How much should she save annually if she thinks she can earn 8% on her investments?Sandra wants to take the next six years off work to travel around the world. She estimates her annual cash needs at $31,000 (if she needs more, she will work odd jobs). Sandra believes she can invest her savings at 12% until she depletes her funds. (Click the icon to view Present Value of $1 table.) (Click the icon to view Future Value of $1 table.) (Click the icon to view Present Value of Ordinary Annuity of $1 table.) (Click the icon to view Future Value of Ordinary Annuity of $1 table.) Requirement 1. How much money does Sandra need now to fund her travels? (Round your answer to the nearest whole dollar.) With the 12% interest rate, Sandra needs Requirement 2. After speaking with a number of banks, Sandra learns she will only be able to invest her funds at 4%. How much does she need now to fund her travels? (Round your answer to the nearest whole dollar.) With a 4% interest rate, Sandra would need If Sandra's savings are earning a lower interest rate (4%), she will need to save to…
- How much should Bianca's dad invest into a savings account today, to be able to pay for Bianca's rent for the next two years if rent is $850 payable at the beginning of each month? The savings account earns 2.50% compounded monthly Courtney set up a savings fund for his son's education so that he would be able to withdraw $1,600 at the beginning of every month for the next 4 years. The fund earns 4.89% compounded quarterly. a. What amount should he deposit today to allow for the $1,600 periodic withdrawals? $57,837.41 $69,654.42 $69,937.11 $58,544.47 b. How much interest would he earn in this investment? $69,937.11 $6,862.89 $76,800.00 $7,145.58You have recently adopted a child and are planning to save for her college education. You want to have $50,000 saved by the time she starts college in 18 years. If your savings account offers an annual interest rate of 3%, how much should you deposit each year in order to reach your goal?Your first child was just born and you want to set up an annuity due savings plan to finance her college education. Your financial institution pays 3.15% interest. If you deposit $1,000 today, and make additional $1,000 deposits every year for the next 17 years, how much will accumulate in the account in 18 years? O $23,733.86 O $25,485.19 O $24,611.49 O $24,481.48