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You are thinking about leasing a car. The purchase price of the car is $33000. The residual value

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You are thinking about leasing a car. The purchase price of the car is $33000. The residual value (the amount you could pay to keep the car at the end of the lease) is $15000 at the end of 36 months. Assume the first lease payment is due one month after you get the car. The interest rate implicit in the lease is 6.75 APR, compounded monthly. What will be your lease payment for a 36 month lease?

For working capital your company has issued $1,500,000 in new bonds. The bonds have a stated 10% coupon rate with 5 annual interest payments of

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For working capital your company has issued $1,500,000 in new bonds. The bonds have a stated 10% coupon rate with 5 annual interest payments of $150,000 due at the end of each year. At the time of issuance they were discounted to yield 12% to the investors, and your company will receive this discounted amount in cash.

(a) Calculate amounts for the new debt issuance and complete the amortization schedule.

(b) Complete the journal entries for the new debt issuance and first interest payment.

here are the cash flows for two mutually exclusive projects Project C0 C1 C2 C3

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here are the cash flows for two mutually exclusive projects
Project C0 C1 C2 C3
A (20,000) 8,000 8,000 8,000
B (20,000) 0 0 25,000

a) at what interest rates would you prefer project A to B
b) what is the IRR of each of each project

the response has to be in excel format

Find the future value of the following ordinary annuities: a) Find the future value of $400 each 6 months for 5 years at a nominal rate of

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Find the future value of the following ordinary annuities:

a) Find the future value of $400 each 6 months for 5 years at a nominal rate of 12%, compounded semiannually.
b) Find the future value of $200 each 3 months for 5 years at a nominal rate of 12%, compounded quarterly.
c) The annuities described in parts a and b have the same total amount of money paid into the during the 5-year period, and both earn interest at the same nominal rate, yet the annuity in part b earns $101.75 more than the one in part a) over the 5 years. Why does this occur?

On January 1st 1990, Chris invested $4,000,000 at a rate of 6% p.a. compounded monthly. Commencing with

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On January 1st 1990, Chris invested $4,000,000 at a rate of 6% p.a. compounded monthly. Commencing with the first withdrawal on January 31st 1997, he has withdrawn $117, 572 at the end of each month to pay for his medical expenses. If this continues, on what date will the money run out?

Sharon buys a new leather jacket on credit. The cost of the jacket is $500 and has to be fully paid within 30 days.

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Sharon buys a new leather jacket on credit. The cost of the jacket is $500 and has to be fully paid within 30 days.

But if she pays within 7 days she has to pay only $495.

Calculate the implicit annual rate of interest of the above transactions.