Which of the following is NOT a commonly used capital budgeting technique NPV PI (Profitability index) Payback period IBT
Date: December 24th, 2022
When you get your credit card bill, it will offer a minimum payment, which: usually only pays the principal and a small amount of accrued interest. usually only pays the principal and no accrued interest. usually only pays the accrued interest and a small amount of principal. usually only pays the accrued […]
Date: December 24th, 2022
Loan Balance Hank purchased a $20,000 car two years ago using an 8 percent, 5-year loan. He has decided that he would sell the car now, if he could get a price that would pay off the balance of his loan. What is the minimum price Hank would need to receive for his car? $15,133.64 […]
Date: December 24th, 2022
Due to poor spending habits, Ricky has accumulated $10,000 in credit card debt. He has missed several payments and now the annual interest rate on the card is 18.95 percent! If he pays $175 per month on the card, in total, how much interest expense does Ricky pay to the credit card company? $12,905.13 […]
Date: December 24th, 2022
Present Value What is the present value of a $250 deposit in year 1 and another $50 deposit at the end of year 6 if interest rates are 10 percent? $255.50 0 = CFO 250 = C01, 1 F01 0 = C02, 4 F02 50 = C03, 1 F03 I = 10 NPV = 255.50 […]
Date: December 24th, 2022
Number of Annuity Payments Joey realizes that he has charged too much on his credit card and has racked up $3,000 in debt. If he can pay $150 each month and the card charges 18 percent APR (compounded monthly), how long will it take him to pay off the debt? 13.03 months 23.96 months […]
Date: December 24th, 2022
If you start making $115 monthly contributions today and continue them for six years, what is their present value if the compounding rate is 12 percent APR? What is the present value of this annuity? $5,941.12 Set BEG mode. PMT = 115; N = 72; I = 1; FV = 0; => PV = […]
Date: December 24th, 2022
Your company borrows $55,000 today to fund its growth initiatives. It must repay the bank in four annual payments of $17,100 at the end of each year. What annual interest rate is your firm paying? 8.26 percent 7.76 percent 10.26 percent 9.33 percent PV = 55000; PMT = -17100; N = […]
Date: December 24th, 2022
Jasmine has decided that she wants to build enough retirement wealth that, if invested at 6 percent per year, will provide her with $3,000 of monthly income for 30 years. To date, she has saved nothing but she still has 25 years until she retires. Jasmine believes that she can earn 9 percent on her […]
Date: December 24th, 2022
Your firm needs to buy additional physical therapy equipment that costs $35,000. The equipment manufacturer will give you the equipment now if you will pay $8,000 per year for the next five years. Assume your firm can borrow at a 3 percent interest rate. You need to analyze if your firm should pay the manufacturer […]
Date: December 24th, 2022
