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 ________. ----------------------------------------------------------------