Consider a company that can invest capital to generate revenue and assume that the marginal revenue from the first five units of capital is as follows: 1st has MR 2.25, 2nd has MR 1.75, 3rd has MR 1.40, 4th has MR 1.24 and 5th has MR 1.17. If the interest rate is given at 20%, what is the optimal amount of capital for the company to borrow? 2 3 4 5
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- 8. For a given procedure, F = 0.7, and the discount rate of 4%, for all 4 years solve for the QALY given: year 1 q 0.2 year 2 q = 0.3 year 3 q 0.5 year 4 q 0.7 discount of 4% (used as (1/(1.04)year ) will equal: year 1 = 0.96 year 2 = 0.92 year 3 = 0.89 year 4 = 0.86 Solve for the QALY number of years. Round-off to the nearest integer. O 2 0 1 0 4 0 3We have the cash flow shown in the following graph. Under these conditions what would be the cash flow classification? Tenemos el flujo de caja que se muestra en la gráfica. ¿Bajo estas condiciones cual sería la clasificación del flujo de caja? 250 tyears O Negative Geometrik Gradient (Gradiente Geométrico Negativol O Positive Geometric Gradient (Gradiente Geométrico Positivo) O Positive Linear Gradient (Gradiente Lineal Positivn) O Negative Linear Gradient (Gradiente Lineal Negativol(1) Would you be willing to take on credit card debt inorder to start a company? Why or why not? (2) Whatwould it take to convince you to invest in or contributeto a crowdsourced start-up?
- What should you invest to earn 20 000 in 3 years gaining 4% effective interest? a. Php 215 614.19 b. Php 112 578.42 c. Php 160 174.27 d. Php 311 064.3540. Calculate the modified duration of a 10-year 7% semi-annual coupon bond priced at 97.50. a. 7.316 b. 7.06 c. 6.88 d. 3.53 e. 3.67An investor can invest money with a particular bank and earn a stated interest rate of 4.40%; however, interest will be compounded quarterly. What i are the nominal, periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate Periodic rate Effective annual rate Rahul needs a loan and is speaking to several lending agencies about the interest rates they would charge and the terms they offer. He particularly likes his local bank because he is being offered a nominal rate of 4%. But the bank is compounding bimonthly (every two months). What is the effective interest rate that Rahul would pay for the loan? ○ 3.945% 4.152% 4.067% 04.186 % Another bank is also offering favorable terms, so Rahul decides to take a loan of $12,000 from this bank. He signs the loan contract at 5% comanded daily for 12 months. Based on a 365-day year, what is the total amount that Rahul owes the bank at the end of the loan's term? (Hint: To calculate the number of days,…
- 2. A contract between BF Goodrich and the Steelworkers Union of America called for the company to spend $100 million in capital investment to keep the facilities competitive. The contract also required the company to provide buyout packages for 400 workers. If the average buyout package is $100,000 and the company is able to reduce costs by $20 million per year, what rate of return will the company make over a 10-year period? Assume all of the company's expenditures occur at time 0 and the savings begin 1 year later.Twelve years ago, an investor bought a certain number of shares of stock for which he paid P100 per share. At the end of each year, for the next 6 years, he received dividends of P20 per share. Thereafter he received P10 per share at the end of each year for the next 6 years. If he sells this stock now at P90 per share, what rate of return will he receive? O 17% O 16% O 16.88% O 16.5%2. My son's YouTube channel (ILYAD) is making around $1000 per year at the moment (assume payments at the end of each year). How much will he have in his RESP account 12 years from now if he keeps collecting money from YouTube? Let's assume his revenue remains the same for the next 4 years (starting today) then the revenue increases to $1500 per year, from year 4 to 8, and then it increases to $2000 per year for the remaining years. Consider 5% annual interest rate for this problem
- Suppose you purchased a corporate bond with a 10-year maturity. a $1,000par value, a 10% coupon rate, and semiannual interest payments. What all this means that you receive $50 interest payment at the end of each six-month period for 10 years (20 times). Then, when the bond matures, you will receive the principal amount (the face value) in a lump sum. Three years after the bonds were purchased, the going rate of interest (coupon rate) on new bonds fell to 6% (or 6% compounded semiannually). What is the current market value (P) of the bond (3 years after the purchase)?Are the following cash flow diagrams economically equivalent if the interest rate is 15% per year? 0 7M 1 8M 2 ΕΟΥ 6M 3 5M 4 H 0 7M 1 7M 2 ΕΟΥ The left-hand diagram's discounted value at the EOY 0 is $[ M. (Round to three decimal places.) 7M 3 7M 42.f How long will it take for an investment of $5,000 to grow $7,500,if it earns 10% simple interest per year? include a cash flow