FIN 419 help A Clearer path to student success/uophelp.com FIN 419 help A Clearer path to student success/uop | Page 4
10. At the operating breakeven point, ________ equals zero.
Problems( show your work)( 1 Point) 11. Xiao Li wishes to accumulate $ 50,000 by the end of 10 years by making equal annual end-of-year deposits over the next 10 years. If Xiao Li can earn 5 percent on her investments, how much must she deposit at the end of each year?
12. Hayley makes annual end-of-year payments of $ 6,260.96 on a five-year loan with an 8 percent interest rate. The original principal amount was
13. Hewitt Packing Company has an issue of $ 1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The current value of each Hewitt bond is ________.
14. Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. Project A Project B Initial Investment $ 350,000 $ 425,000 Year Cash Inflows( CF)
The NPVs of projects A and B are ________.----------------------------------------------------------------
FIN 419 Week 1 DQ 1
10. At the operating breakeven point, ________ equals zero.
Problems( show your work)( 1 Point) 11. Xiao Li wishes to accumulate $ 50,000 by the end of 10 years by making equal annual end-of-year deposits over the next 10 years. If Xiao Li can earn 5 percent on her investments, how much must she deposit at the end of each year?
12. Hayley makes annual end-of-year payments of $ 6,260.96 on a five-year loan with an 8 percent interest rate. The original principal amount was
13. Hewitt Packing Company has an issue of $ 1,000 par value bonds with a 14 percent annual coupon interest rate. The issue has ten years remaining to the maturity date. Bonds of similar risk are currently selling to yield a 12 percent rate of return. The current value of each Hewitt bond is ________.
14. Yong Importers, an Asian import company, is evaluating two mutually exclusive projects, A and B. The relevant cash flows for each project are given in the table below. The cost of capital for use in evaluating each of these equally risky projects is 10 percent. Project A Project B Initial Investment $ 350,000 $ 425,000 Year Cash Inflows( CF)
The NPVs of projects A and B are ________.----------------------------------------------------------------