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Posts Tagged ‘Please’

Present value index help please!!!?

18 Jul

A project has estimated annual net cash flows of $82,000 for five years and is estimated to cost $259,000. Assume a minimum acceptable rate of return of 12%. Using the Present Value of an Annuity of $1 at Compound Interest table below, determine (1) the net present value of the project and (2) the present value index, rounded to two decimal places.
If required, use the minus sign to indicate negative numbers.

*** What is the Present value index(rounded to two decimal places) if the Net present value of the project is $36,610.00. The answer is not 0.85

Thank you

 
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CAN SOME PLEASE THE DIFF. BETWEEN TERM LIFE INSURANCE OR REGULAR LIFE.?

30 Jun

Also is it better to just by a plot burial and lock in the rates today, my job does not offer life insurance and i would like some type of reassurance for my family if i were to die. I’m in the 25-35 yr range group, can anyone suggest polices or explain them altogether!

 
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Where can I find retirement planning calculators? Please suggest me a free version only.?

06 Jun

Also I want to calculate life insurance benefits. Please suggest me a best one.

 
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homework help, computing annuity payments? please please help i’m totally lost!!!!?

05 Jun

please show me the steps on how to solve this, its so confusing!!!

Gary Whitmore is a high school sophomore. He currently has $7,500 in a money market account paying 10 percent annually. He plans to use this and his savings over the next four years to buy a car at the end of his sophomore year in college. He estimates that the car will cost him $16,972 in four years. To achieve his target he must he invest $_____ in the money market account every year for the next four years

 
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Annuity problem, Please help?

04 Jun

consider a 5 payment annuity of $200 per year, with the first payment occuring at t=4. what is the present value (at t=0) of that annuity if r= 10%.
Answer should be: 569.61

Hint: what is the t = 3 value?

please show me how you solve this problem

 
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math help explain please?

31 May

Find the present value of an ordinary annuity with payments of $800 per month at 6% compounded monthly for 4 years.

B.) You want to take out a loan to buy a new car for which you need to finance $9923. Your bank will give you a loan at 5% compounded monthly. You look at your budget and decide that you can afford a payment of $293 a month. How many years, to the nearest tenth of a year, must the loan be taken out to meet these conditions?
Explain your work.

 
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Can you please help me with a few personal finance questions?

31 May

You would be a great help for answering this. Thanks!

1. Do you believe there is a product out there that educates people on personal finance effectively?

2. If so, do you believe these products are priced fairly?

3. If given the choice, would you participate in a membership forum that promotes financial literacy through progression programs, meaningful discussions, and award honors?

4. How much do you think is a reasonable price to join a forum like the one described in the last question?

5. What type of information would you like to see if this forum existed?

 
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Can someone please explain to me the formula for this problem?

30 May

Susan Miller is planning for her retirement, so she is setting up a payout annuity with her bank. She wishes to receive a payout of $1600 per month for 35 years. How much money must she deposit if her monay earns 8% interest compounded monthly? (Round to the nearest cent)
P=

 
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Please help Me with this Terrible Question~!!?

27 May

Sunset Cruises Pty Ltd wishes to accumulate funds to provide a retirement annuity for its Director of Marketing, Penny Peters. Penny, by contract, will retire at the end of exactly 10 years. On retirement, she is entitled to receive an annual end-of-year payment of $35,000 for exactly 20 years. If she dies prior to the end of the 20-year period, the annual payments will pass to her heirs. During the 10-year ‘accumulation period’, Sunset Cruises wishes to fund the annuity by making equal annual end-of-year deposits into an account earning 8% p.a. interest. Once the 20-year ‘distribution period’ begins, Sunset Cruises plans to move the accumulated monies into an account earning a guaranteed 10% p.a. At the end of the distribution period the account balance will equal zero. Note that the first deposit will be made at the end of year 1 and the first distribution payment will be received at the end of year 11.

(a) Draw a time-line depicting all the cash flows associated with the above accumulation and distribution periods.

(b) How large a sum must Sunset accumulate by the end of the year 10 to provide the 20-year, $35,000 annuity?

(c) How large must Sunset’s equal annual end-of-year deposits into the account be over the 10-year accumulation period to fund Penny’s retirement annuity fully?

 
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Please solve the quiz of finincial management (mgt201)?

26 May

1. Who determine the market price of a share of common stock?
a. The board of directors of the firm
b. The stock exchange on which the stock is listed
c. The president of the company
d. Individuals buying and selling the stock
2. What should be the focal point of financial management in a firm?
a. The number and types of products or services provided by the firm
b. The minimization of the amount of taxes paid by the firm
c. The creation of value for shareholders
d. The dollars profits earned by the firm
3. Which of the following would generally have unlimited liability?
a. A limited partner in a partnership
b. A shareholder in a corporation
c. The owner of a sole proprietorship
d. A member in a limited liability company (LLC)
4. Which of the following is equal to the average tax rate?
a. Total tax liability divided by taxable income
b. Rate that will be paid on the next dollar of taxable income
c. Median marginal tax rate
d. Percentage increase in taxable income from the previous period
5. Felton Farm Supplies, Inc., has 8 % return on total assets of Rs.300,000 and a net
profit margin of 5 %. What are its sales?
a. Rs. 3, 750,000
b. Rs. 480, 000
c. Rs. 300, 000
d. Rs. 1, 500,000
6. Which of the following would not improve the current ratio?
a. Borrowing on short term to finance additional fixed assets
b. Issue long-term debt to buy inventory
c. Sell common stock to reduce current liabilities
d. Sell fixed assets to reduce accounts payable
7. With continuous compounding at 8% for 20 years, what is the approximate future
value of a Rs.20,000 initial investment?
a. Rs. 52,000
b. Rs .93,219
c. Rs. 99,061
d. Rs. 915,240
8. In 2 years you are to receive Rs.10,000. If the interest rate were to suddenly
decrease, the present value of that future amount to you would __________.
a. Fall
b. Rise
c. Remain unchanged
d. Incomplete information
9. Cash budgets are prepared from past:
a. Balance sheets
b. Income statements
c. Income tax and depreciation data
d. None of the given options
10. Which of the following is part of an examination of the sources and uses of
funds?
a. A forecasting technique
b. A funds flow analysis
c. A ratio analysis
d. Calculations for preparing the balance sheet
11. An annuity due is always worth _____ a comparable annuity.
a. Less than
b. More than
c. Equal to
d. Cannot be found
12. As interest rates go up, the present value of a stream of fixed cash flows _____.
a. Goes down
b. Goes up
c. Stays the same
d. Cannot be found
13. ABC Company is expected to generate Rs.125 million per year over the next three
years in free cash flow. Assuming a discount rate of 10%, what is the present
value of that cash flow stream?
a. Rs. 375 million
b. Rs. 338 million
c. Rs. 311 million
d. Rs. 211 million
14. If we were to increase ABC company’ cost of equity assumption, what would we
expect to happen to the present value of all future cash flows?
a. An increase
b. A decrease
c. No change
d. Incomplete information
15. In proper capital budgeting analysis we evaluate incremental __________ cash
flows.
a. Accounting
b. Operating
c. Before-tax
d. Financing
16. A capital budgeting technique through which discount rate equates the present
value of the future net cash flows from an investment project with the project’s
initial cash outflow is known as:
a. Payback period
b. Internal rate of return
c. Net present value
d. Profitability index
17. Discounted cash flow methods provide a more objective basis for evaluating and
selecting an investment project. These methods take into account:
a. Magnitude of expected cash flows
b. Timing of expected cash flows
c. Both timing and magnitude of cash flows
d. None of the given options
18. Which of the followings make the calculation of NPV difficult?
a. Estimated cash flows
b. Discount rate
c. Anticipated life of the business
d. All of the given options
19. From which of the following category would be the cash flow received from sales
revenue and other income during the life of the project?
a. Financing activity
b. Operating activity
c. Investing activity
d. All of the given options
20. Which of the following technique would be used for a project that has non –
normal cash flows?
a. Multiple internal rate of return
b. Modified internal arte of return
c. Net present value
d. Internal rate of return

 
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please show me how to do these annual payment problems?

25 May

If an annuity was set up for semi-annual payments at the end of each period in the amt of $1350, what would be the value of this annuity after 15 1/2 yrs with interest compounded semiannually at a rate of 4%?

A company requires the amount of $850,000 in twenty(20) years to retire a bond issue. Assume they earn 5% interest compounded quarterly. What amount would they have to pay quarterly to be able to retire this debt in 20 years?

 
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CAn you please answer these question of Financial Management ?

22 May

1. Who determine the market price of a share of common stock?

a. The board of directors of the firm
b. The stock exchange on which the stock is listed
c. The president of the company
d. Individuals buying and selling the stock

2. What should be the focal point of financial management in a firm?

a. The number and types of products or services provided by the firm
b. The minimization of the amount of taxes paid by the firm
c. The creation of value for shareholders
d. The dollars profits earned by the firm

3. Which of the following would generally have unlimited liability?

a. A limited partner in a partnership
b. A shareholder in a corporation
c. The owner of a sole proprietorship
d. A member in a limited liability company (LLC)

4. Which of the following is equal to the average tax rate?

a. Total tax liability divided by taxable income
b. Rate that will be paid on the next dollar of taxable income
c. Median marginal tax rate
d. Percentage increase in taxable income from the previous period

5. Felton Farm Supplies, Inc., has 8 % return on total assets of Rs.300,000 and a net
profit margin of 5 %. What are its sales?

a. Rs. 3, 750,000
b. Rs. 480, 000
c. Rs. 300, 000
d. Rs. 1, 500,000

6. Which of the following would not improve the current ratio?

a. Borrowing on short term to finance additional fixed assets
b. Issue long-term debt to buy inventory
c. Sell common stock to reduce current liabilities
d. Sell fixed assets to reduce accounts payable

7. With continuous compounding at 8% for 20 years, what is the approximate future
value of a Rs.20,000 initial investment?

a. Rs. 52,000
b. Rs .93,219
c. Rs. 99,061
d. Rs. 915,240

8. In 2 years you are to receive Rs.10,000. If the interest rate were to suddenly
decrease, the present value of that future amount to you would __________.

a. Fall
b. Rise
c. Remain unchanged
d. Incomplete information

9. Cash budgets are prepared from past:

a. Balance sheets
b. Income statements
c. Income tax and depreciation data
d. None of the given options
Financial Management Quiz 1
Spring Semester 2009

10. Which of the following is part of an examination of the sources and uses of
funds?

a. A forecasting technique
b. A funds flow analysis
c. A ratio analysis
d. Calculations for preparing the balance sheet

11. An annuity due is always worth _____ a comparable annuity.

a. Less than
b. More than
c. Equal to
d. Cannot be found

12. As interest rates go up, the present value of a stream of fixed cash flows _____.

a. Goes down
b. Goes up
c. Stays the same
d. Cannot be found

13. ABC Company is expected to generate Rs.125 million per year over the next three
years in free cash flow. Assuming a discount rate of 10%, what is the present
value of that cash flow stream?

a. Rs. 375 million
b. Rs. 338 million
c. Rs. 311 million
d. Rs. 211 million

14. If we were to increase ABC company’ cost of equity assumption, what would we
expect to happen to the present value of all future cash flows?

a. An increase
b. A decrease
c. No change
d. Incomplete information

15. In proper capital budgeting analysis we evaluate incremental __________ cash
flows.

a. Accounting
b. Operating
c. Before-tax
d. Financing

16. A capital budgeting technique through which discount rate equates the present
value of the future net cash flows from an investment project with the project’s
initial cash outflow is known as:

a. Payback period
b. Internal rate of return
c. Net present value
d. Profitability index

17. Discounted cash flow methods provide a more objective basis for evaluating and
selecting an investment project. These methods take into account:

a. Magnitude of expected cash flows
b. Timing of expected cash flows
c. Both timing and magnitude of cash flows
d. None of the given options

18. Which of the followings make the calculation of NPV difficult?

a. Estimated cash flows
b. Discount rate
c. Anticipated life of the business
d. All of the given options

19. From which of the following category would be the cash flow received from sales
revenue and other income during the life of the project?

a. Financing activity
b. Operating activity
c. Investing activity
d. All of the given options

20. Which of the following technique would be used for a project that has non –
normal cash flows?

a. Multiple internal rate of return
b. Modified internal arte of return
c. Net present value
d. Internal rate of return

 
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401 k please help choose- no clue?

21 May

I have no clue what to choose- here are some options. I am in my early 20s. I heard people say you can risk it now. I just have noooooooooooooo clue anything about 401k – Can you recommend any of the ones pasted below? Does anything sound interesting to you? OR where can i research about each individual one/please send me a link if you know of anything online. Thanks so much- really appreciate it!

INVESTMENT OPTION ELECTION
The following investment allocation will apply to all new money deposited into an existing group annuity or trust contract unless otherwise
directed. Monies previously deposited to this contract will not be changed to reflect the selections below. NOTE: In the event of a contract
conversion from an existing individual annuity contract or from another group annuity contract or trust agreement, all money previously
deposited at Nationwide will be invested pursuant to the selections below. If you have any questions, please consult your plan administrator.
All allocations must be made in whole percentages.
I hereby authorize all FUTURE CONTRIBUTIONS be invested as follows:
Risk
Inquire
Code Risk
Inquire
Code
IV -Capital World Gr & Inc R3 .0% 388
IV -Growth Fund of America R3 .0% 662
V AllianceBrnstn IntlValFd-A .0% 578
I BOA-INDEXED FIXED .0% 8001
V Baron Growth Fund .0% 584
V BlkRk LgCap Val A .0% 1059
V Davis Opportunity Fd A .0% 473
IV Fid Adv Equ Incm Fnd Cls A .0% 282
V Franklin BalSheet Inv Fd A .0% 975
II Gartmore Govt Bond Fd A .0% 835
VI Gartmore InvDes Aggr SC .0% 970
II Gartmore InvDes Cons SC .0% 974
IV Gartmore InvDes Mod SC .0% 972
V Gartmore InvDes ModAggr SC .0% 971
III Gartmore InvDes ModCons SC .0% 973
V Gartmore MidCap Mkt Indx A .0% 968
IV Gartmore S&P 500 Index SC .0% 356
VI Gartmore Small Cap Index A .0% 967
II GdmnScs Govt Income Fd A .0% 771
IV JPM MidCap Value A .0% 611
V Janus Twenty Fnd .0% 325
III Oakmark Equity & Inc Fd II .0% 669
VI Oppnhmr Devl Markets Fd A .0% 844
II PIMCO TtlRetrn Fnd Cls A .0% 138
IV Pioneer High Yield Fd A .0% 650
TOTAL 100.0%
Additional funds are available to you after this enrollment process via www.nationwide.com
Risk Category Legend: VI – Very High, V – High, IV – Moderate, III – Low, II – Very Low, I – Lowest

 
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Can someone please give me advice on what is best: Life insurance, Annuities or Term if you’re 53 years old?

19 May

I’m looking to invest in life insurance, annuIties and term insurance, mutual funds. However, I don’t know where to start? How can I invest especially in annuities if I want to get a check a month in about 10 years to live on when retiring. My friend’s mom invested in annuities and when she got sick at 55 years old and couldn’t work she was receiving annuities check which helped out alot.Can experienced people respond who have annuities, life insurance and/or term insurance with the kind of insurance they chose and which company you chose and WHY YOU CHOSE TO GO WITH THAT PARTICULAR COMPANY.THERE ARE SO MANY OF THEM OUT THERE…ITS’ CONFUSING AS TO WHICH ONE IS BEST? Thanks in advance for advice.

 
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Must figure out what I’m doing wrong! Please try to help, examination tomorrow!?

18 May

The finance plan includes $150 down, with payments of $113 at the end of each month for 1.5 years.
Determine the annual interest rate being charged, if the interest is compounded monthly.
The selling price is $1894
And show mathematical steps using one or more of these formulas:
compound interest: a = p (1+i) ^ n
present value: pv= a divided by (1+i) ^ n
or the annuity formuals, possibly…

My attempt:

selling price – 150 = 1744
which is the principal value= p
what he payed is the future value, so 113 x (1.5 x 12) = 2034
2034 = 1744 ( 1 + i ) ^ 18
isolated for i
then multiplied i by 12 (compounding periods per year) to get r as the interest rate…
But this was not the correct answer, it is suppose to be 20.6 %

 
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