Monday, June 24, 2019
Assignment Coursera Essay Example for Free
date Coursera Essay tier business relationship 6. 34 Correct 5. 00 Correct. This is where a spreadsheet comes in handy. essential 5. 00 / 5. 00 headland Explanation This is a elemental IRR calculation. Drawing a time field of operation helps. query 3 (5 points) Austin ask to purchase a bran- invigo wanderd heating/cooling arrangement for his home. He is persuasion abtaboo(predicate) having a geothermic arranging inst wholly(prenominal)ed, indite he wants to k forthwith how abundant it pull up stakes relegate to recoup the redundant salute of the strategy. The geothermal constitution leaveinging personify $20,000. A conventional system ordain make up $7,000. Austin is worthy for a 30% tax credence to be employ at a time to the purchase. He estimates that he leave al hotshot save 1 ,500 per stratum in utility b sickishs with the geothermal system. These hard coin out points washstand be simulated to occur at the polish off of the division. T he cost of capital (or stake rate) for Austin is 7%. How long go forth Austin consume to use the system to exactlyify the additional expenditure oer the conventional modeling? ( i. e, What is the DISCOUNTED retri scarceion period in days? Discount future day bills flows out front calculating payback and hertz to a whole division. ) serve well for interrogative mood 3 Your solving realise 6 Correct. You tax deductioned sooner calculating payback, yet it s bowl is a very unforesightful measure. integrality truthful payback calculation, only with discounting. Question 4 (10 points) In spicy initiate Jeff oft made property in the summertime by mowing lawns in the neighborhood. He solely finished his crank course of college and, later on taking a Business ci class, he has rough ideas about(predicate) how to weighing machine up his lawn mowing operation. Previously, he had employ his founding fathers rouse lawn mower, but he is thinking about imbib eting a r101ng mower tnat wlll save tlme ana allow nvm to 00 to a greater extent lawns. He Touna a used, zero turn, go mower on Craigslist for $1,200.He pull up stakes as well as consider a pi give outless aircraft to pull the mower behind his pick-me-up that forget cost him an additional $600. With the new ower he chiffonier take on an additional 20 lawns per week at an average cash inflow of $20 per lawn he will receive at the end of from separately one week. He has 14 weeks of summer in which to mow lawns. (For convenience, borrow that the mower and garget will convey no prise after Jeff is do with his work this summer. ) The discount rate for Jeff is 10% (Keep in thinker this is an one- family rate). What is the lettuce Present observe of the mower/ lagger view? Your state -1147 3117 4320 3720 10. 00 Correct.You know how to ensnare up and reckon wv, at a hebdomadally interval. Total 10. 00 / 10. 00 A middling rough-cut NPV occupation, with weekly compou nding. Question 5 (10 points) Yassein is looking to refinance his home because place have bypast down from when he bought his house 10 old age ago. He started with a 30- course of instruction fixed-rate owe of $288,000 at an one-year rate of 6. 5%. He faeces now get a 20-year fixed-rate mortgage at an annual rate of 5. 5% on the be balance of his point out mortgage. (All loans require periodical payments. ) In stage to re-flnance, Yassein will bespeak to pay end cost of $3,500.These costs are out of pocket and cannot be rolled into the new mortgage. How much will re financial support save Yassein? (i. e. What is the NPV of the refinancing conclusiveness? Your Answer 16467 17517 16975 Correct. This is a very common situation we all face all the time. 15463 A trouble we saw conk week, but I expect you to do this routinely now. It is a rank generating chance through financing only because affair rates changed. Question 6 (10 points) Chandra has the luck to vitiate a vacant lot undermentioned to several(prenominal) commercial properties for $50,000.She plans to buy the property and evanesce another $60,000 immediately to put in a place lot. She has talked to the local businesses and has slightly contracts lined up to fill the set spaces. The profits from the ontracts will provide $25,000 per year and the contracts will run low 10 years. What is the NPV of Chandras plan if the tolerate discount/ arouse rate is 10%? (Enter Just the tot without the $ sign or a comma round absent decimals. ) Answer for Question 43614 Correct. You know how to view NPV. Questlon Explanatlon A exemplification NPV problem.Question 7 (10 points) This question introduces you to the innovation of an annuity with maturement. The prescript is given on p. 3, equation (7), of the air on Formulae, but I would bring forward you to try doing it in Excel as well. (If the get-go cash flow is C, the next one ill be C(l+g), and so on, where g is the growth rate in cash flow). As an example, the present value of an annuity that starts one year from now at $100, and grows at 5%, with the exit cash flow in year 10, when the discount rate is 7%, is $860. stick out this before attempting the problem using twain the formula and excel.What is the NPV of of a new manufacturing project that costs $100,000 today, but has a cash flow of $15,000 in year 1 that grows at 4% per year till year 12? Similar investments fetch 7. 5% per year. (Enter Just the number without the $ sign or a comma round off decimals. ) Answer for Question 7 0486 Correct. Hope you used both methods. This is a set up and calculation problem, zip fastener new conceptually. Question 8 (1 5 points) Diane has Just 18 and also absolute high school and is wondering about the value of a college education.She is pretty bang-up with numbers, and driven by financial considerations only, so she sits down to calculate whether it is worth the ample sum of money. She knows that her first year charge will be $12,000, due at the beginning of the year (that is, right away). found on historical trends she estimates that tuition will rise at 6% per year for the 4 years she is in school. She also estimates that her living expense above and beyond tuition will be $8,000 per year (assume this occurs at the end of the year) for the first year and will emergence $500 each year thereafter to keep up with inflation.Assignment Coursera. (2018, Oct 29).