Question

Hi please can you check my work and show me the right answers and how you get to the answers? thank you

Question1

Penny bought a new truck today from Middlefield Motors. She will receive a cash rebate of 5,000 dollars from Middlefield Motors today, pay 16,400 dollars to Middlefield Motors in 3 year(s), receive a cash rebate of 6,400 dollars from Middlefield Motors in 4 year(s), and pay 16,200 dollars to Middlefield Motors in 7 year(s). If the discount rate is 7.05 percent, then what is the present value of the cash flows associated with this transaction? Note: the correct answer is less than zero. PVo= 28550.7

Question 2

Preeti has an investment that is worth 51,400 dollars and has an expected return of 14.98 percent. The investment is expected to pay her 39,600 dollars in 1 year(s) from today and X dollars in 4 year(s) from today. What is X? 29641.29

Question 3

Red Royal Consulting just bought a new vending machine. To pay for the vending machine, the company took out a loan that requires Red Royal Consulting to pay the bank a special payment of 15,960 dollars in 6 month(s) and also pay the bank regular payments of 3,380 dollars each month forever. The interest rate on the loan is 0.86 percent per month and the first monthly payment of 3,380 dollars will be paid in 1 month. What was the price of the vending machine? 393023.25

Question 4

You own a building that is worth 68,400 dollars and is expected to produce quarterly cash flows of 1,150 dollars forever. The first quarterly cash flow is expected in 3 months from today. What is the expected quarterly cost of capital for the building? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098. answer: 0.0168

Question 5

An investment, which is worth 22,700 dollars and has an expected return of 16.27 percent, is expected to pay fixed annual cash flows forever with the next annual cash flow expected in 1 year. What is the present value of the annual cash flow that is expected in 4 years from today? 2020. 89   or   2021

Question 6

Quantum Pizza took out a loan from the bank today for 27,300 dollars. The loan requires Quantum Pizza to make a special payment of 12,800 dollars to the bank in 1 years and also make regular, fixed payments of X to the bank each year forever. The interest rate on the loan is 11.67 percent per year and the first regular, fixed annual payment of X will be made to the bank in 1 year. What is X, the amount of the regular, fixed annual payment? 3185.91

Question 7

Raj has an investment worth 222,213 dollars. The investment will make a special payment of X dollars to Raj in 2 month(s) and the investment also will make regular, fixed monthly payments of 2,270 dollars to Raj forever. The expected return for the investment is 1.1 percent per month and the first regular, fixed monthly payment of 2,270 dollars will be made to Raj in 1 month. What is X, the amount of the special payment that will be made to Raj in 2 month(s)? 16200

Answer 1