Sunday, November 28th, 2010 at
4:08 am
1. The Roberts Company has decided to invest in a project that is expected to produce the following cash flows: ,000 in year 1, ,000 in year 2 and ,000 in year 3 at which time it would be sold for ,500. The project would require a ,000 investment.
What is the net present value of the project assuming an interest rate of 10 percent?
2. You plan on taking an extended vacation upon your graduation and to do so you will need ,000 in three years. If the bank pays interest of 6 percent, how much should you deposit today?
3. You recently purchased a new car for ,000 by agreeing to make equal annual payments for 5 years. If the interest rate on your loan is 6 percent, how much is each payment?
4. You have recently opened a retirement account and decided to deposit ,000 a year in the account. If you want to retire in 30 years and the account earns 6 percent interest, how much will he have in your account when you retire?
5. You recently received a birthday gift of ,500 and you decide to save it for later use. If you deposit it into an investment account that pays 8% interest, how much will be in the account in 6 years?
ANY HELP YOU CAN GIVE IS APPRECIATED.
If you could show just the dry equations you used, that would be great.
Happy Thanksgiving 
Wednesday, November 17th, 2010 at
4:40 am
1. The present value of an annuity factor at 8% for 10 years is 6.7101. This implies that an annuity of ten ,000
payments at 8% yields a present value of ,235.
a. TRUE
b. FALSE
2.The debt to equity ratio helps assess the risks of a company’s financing structure.
a. TRUE
b. FALSE
3.On January 1, 2009, a company issued a 0,000, 10%, 8-year bond payable and received proceeds of 2,000.
Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the
discount. The total amount of interest expense to be recorded over the life of the bonds is 0,000.
Cash Interest Payments: (0,000 x .10 x ½) x 16 = 0,000
Total Interest Expense: ,000 + 0,000 = 8,000
a. TRUE
b. FALSE
Saturday, November 6th, 2010 at
9:09 am
My grandmother left my 60 percent of her trust/estate and my Dad 40 percent. Also 311,00 in the form of Mutual Funds and annuities. There are 4 mutual fund accounts and 3 annuity accounts. She named me primary beneficiary of nearly 240K of the total 311K. My dad is upset and said he wants me to apply the same ration me 60 him 40 on the total assigned accounts. As it stands the only thing that has to be split 60/40 is her house and cash in the bank. The stocks are all assigned to me except for about 50K. I have two questions, Can he legally contest the stock beneficiaries, and if so, will this delay me getting them in liquid form? He is quilting me into signing a contract outside the will to relinquish monies I get to him to make it fair. I think she did what she did and that’s what she wanted. I just don’t want to cause a giant delay and court battle if he has a possible argument. He really showed his colors in this process by becoming very visceral.