Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Basic Finance Expert

Question: 1- You have just purchased $6000 shares of company XYZ. You will sell the stock when its market has doubled. If you expect the stock price to increase 20% per year, how long do you anticipate waiting before selling the stock?

2- You are buying a new appliance. From past experience you estimate future repair costs as:

First year.......... $5

Second year .... $15

Third year ........ $25

Fourth tear ....... $35

The dealer offers to sell you a four-year warranty for $60. you require at least a 6% interest rate on your investments. Should you invest in the warranty? support your answer with calculations.

3- It is estimated that the annual maintenance cost of a statue erected in front of a public building in a state capital would be $2,500. Assuming an interest rate of 4% year compounded quarterly, determine the capitalized cost for maintaining the statue.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M92766763

Have any Question?


Related Questions in Basic Finance

Your firm is contemplating the purchase of a new 585000

Your firm is contemplating the purchase of a new $585,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $95,000 at the end of that time. ...

What functional roles does marketing research play the

What functional roles does marketing research play the development of a marketing decision? Give an example of each role.

Please show formula and explanationyou have decided to

Please show formula and explanation You have decided to place $553 in equal deposits every month at the beginning of the month into a savings account earning 10.62 percent per year, compounded monthly for the next 13 yea ...

Determine the internal rate of return for a project that

Determine the internal rate of return for a project that costs $177,000 and would yield after-tax cash flows of $21,000 per year for the first 5 years, $29,000 per year for the next 5 years, and $42,000 per year for the ...

What is the present value of 24000 to be received 32 years

What is the present value of $24,000 to be received 32 years from today if the annual rate is 10%? [use semi-annual compounding]

You were offered to purchase a stock that paid a 200

You were offered to purchase a stock that paid a $2.00 dividend yesterday. You expect the dividend to grow at a rate of 5% per year into a perpetuity. If the appropriate rate of return for the stock is 11%, what is the m ...

Consider the following two mutually exclusive

Consider the following two mutually exclusive projects: Project / Year 0 1 2 3 4 Cost of Capital A -100 40 40 40 40 15% B -73 30 30 30 30 15% Which of the following is closest to the incremental IRR?

You purchases a house for 18133300 you made a down payment

You purchases a house for $181,333.00 . You made a down payment of 20,000 and the remainder of the purchase price was financed with a mortgage loan. The mortgage loan is a 30 year mortgage with an annual interest rate of ...

Describe a bank accepted bill and explain the role of the

Describe a bank accepted bill, and explain the role of the acceptor, payee, drawer and discounter, in the context of bank accepted bills.

Why would a person research the effects of global

Why would a person research the Effects of global competitiveness on strategic human resources?

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As