Exam_2_Chapter_2_and_5_1_5_3_Math_295-2.pdf

The ultimate judge of a product’s “high quality” is the:

According to the legal systems comparison, which of the following would be considered an “Act of God” under code law but NOT under common law?

In the EU, the _____ initiates policy, ensures compliance by member states, and oversees the implementation of laws and policies.

Choose one correct statement.

The time value of money implies:

Primary bile acids are conjugated with (select all that apply)

You are buying a new car.  You can pay cash for the entire amount by writing a check from your money market deposit account at the bank that currently pays 1.2% (annual, compounded monthly).  Download this Excel answer file with the project information in it.  Use it to answer the following three questions showing your work and then upload your file to answer this question. Part a:  The finance manager says he can get you a special deal if you take out a loan: “All you have to do to qualify for a rebate is to finance a minimum of $9,000 at 3.99% (annual, compounded monthly). You also cannot pay off the loan for at least 6 months.” How much would your loan payments be if you borrowed the minimum $9,000 and paid it off in equal installments over the next 6 months?   Part b:  The finance manager says, “Taking out the loan entitles you to an immediate $500 cash rebate on the car.”  Make a timeline for the loan and the rebate.   Part c:  How much better or worse off are you today if you take out the loan, receive the rebate, and make loan payments from your money market deposit account?  Does the loan/rebate deal make financial sense?

You win the Console Lottery.  They payoff is a growing “console” bond.  That means that the bond will pay you $100,000 next year and thereafter the payment will grow a 4.2% per year forever.  If your required return is 9%, what is the value of the bond to you today?

Your event lighting company is thinking about investing in a bank of portable lights for sporting events. Your accounting department just brought you the following pro-forma accounting projections for a given bank of lights.  These are in the Excel Answer File.  Your job is to analyze this project from a financial perspective. Download this Excel answer file with the project information in it.  Use it to answer the following three questions showing your work and then upload your file. Part a: If the tax rate is 40%, what is the incremental, unlevered net income of the project appropriate for project analysis in each year?  Part b: What is the incremental free cash flow of the project in each year? Part c: What is the PI of the project if the required return is 8%?