Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Advances in technology have made easy the extensive use of credit scoring by financial institutions in building their lending decisions. Credit scoring can be defined largely as use of statistical techniques and historical data to rank attractiveness of potential borrowers and guide lending decisions. Describe in what ways could this practice improve efficiency of financial system?

2) Company is assessing the investment project which costs $ 15,000 and will make cash flow after taxes of $ 12,000 in first year, 3,000 in second year and $7,000 in third year. Discount rate for project is 15%. Compute net present value (NPV) and Profitability Index (PI) investment project must be run. Describe why in detail.

3) Once you retire you will be withdrawing $48,000 at commencement of every year for another 30 years. To build your retirement plans and for upcoming 30 years, you will begin depositing at the end of every year over 24 years certain amount of money in your bank account. As you are expecting that your salary will increase by 2% every year for coming 24 years then you wait for your yearly savings to increase by similar rate. If your bank is paying you 3.25% APR compounded weekly. What must be your first deposit so that you can attain your retirement plan?

i) $18,495.93
ii) $20,590.39
iii) $21,270.29
iv) $442,895.39
v) None of the given answers are right.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914040

Have any Question? 


Related Questions in Basic Finance

Practice sentence variety-rewrite the following paragraph

Practice sentence variety:- Rewrite the following paragraph by varying sentence types and sentence lengths to keep the writing interesting. Smartfood was founded by Ann Withey, Andrew Martin, and Ken Meyers in 1984. The ...

1 when are tests of simple main effects used and what do

1. When are tests of simple main effects used, and what do researchers learn from them? 2. Who developed the rationale and computations for the analysis of variance? 3. Under what two circumstances would you use a multiv ...

In april 2010 christina romer who was then serving as chair

In April 2010, Christina Romer, who was then serving as chair of the President's Council of Economic Advisers, argued: "The overwhelming weight of the evidence is that the current very high-and very disturbing-levels of ...

Assume the followingerm 7rf 2expected risk premium on

Assume the following: E(rM) = 7% rF = 2% Expected risk premium on Boeing stock = 7% a. What is the expected return on Boeing stock? Show your work. b. What is the value of β for Boeing stock? Show your work.

Following the end of world war ii in 1945 the reichsmark

Following the end of World War II in 1945, the Reichsmark, the German currency, lost so much value that a barter economy arose. During this period, many Germans used U.S. cigarettes as currency. Why might cigarettes, rat ...

Use the is-mp model including the output gap phillips curve

Use the IS-MP model (including the output gap Phillips curve) to analyze how the Federal Reserve would respond to a significant positive demand shock. Assume that the economy was in long-run macroeconomic equilibrium bef ...

To qualify as a true experiment a research study requires

To qualify as a true experiment, a research study requires the manipulation of at least one variable. The fact that some variables cannot (or should not) be manipulated limits the topics that can be investigated easily w ...

Strategywhat is an aggressive financing strategy what are

Strategy What is an aggressive financing strategy? What are components of aggressive finance strategies? What is the difference between the aggressive and conservative financing models? Under what circumstances would you ...

Describe the liquidity premium what are its uses in

Describe the liquidity premium. What are its uses in determining the term structure of interest rate?

1 the following data are for zero coupon treasury bonds

1. The following data are for zero coupon treasury bonds each with a face value of $1000. They are to be used for all parts of this question. Maturity   Price 1 Year 968 2 Year 940 3 year 921 a. What is the three year sp ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen