{"id":216753,"date":"2018-09-15T21:41:19","date_gmt":"2018-09-15T21:41:19","guid":{"rendered":"http:\/\/localhost\/wordpress\/index.php\/2018\/09\/15\/fin-515-week-4-midterm\/"},"modified":"2018-10-24T08:58:13","modified_gmt":"2018-10-24T08:58:13","slug":"fin-515-week-4-midterm","status":"publish","type":"post","link":"https:\/\/www.benedictsol.com\/blogs\/fin-515-week-4-midterm\/","title":{"rendered":"FIN 515 Week 4 Midterm"},"content":{"rendered":"<p>Question\u00a01.\tQuestion :\t(TCO G) The firm&#8217;s asset turnover measures\tQuestion\u00a02.\tQuestion :\t(TCO G) If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin?\tQuestion\u00a03.\tQuestion :\t(TCO B) You plan on retiring in 20 years. You currently have $275,000 and think you will need $1,000,000 to retire. Assuming you don&#8217;t deposit any additional money into the account, what annual return will you need to earn to meet this goal?\tQuestion\u00a04.\tQuestion :\t(TCO B) You take out a 4 year car loan for $18,000. The loan has a 4% annual interest rate. The payments are made monthly. What are the monthly payments? Show your work.\tQuestion\u00a05.\tQuestion :\t(TCO B) You currently have $10,000 in your retirement account. If you deposit $500 per month and the account pays 5% interest, how much will be in the account in 10 years? Show your work.\tQuestion\u00a06.\tQuestion :\t(TCO B) You have a two children, A and B. Child A is not going to college but is working in a business to learn the ropes. Child A plans on opening a business someday. Child B is attending college. You put a certain amount of money into an account. From this account, Child B will receive $2,000 per month for the next four years. Whatever is left at that time will go to Child A to help start the business. You want Child A to receive $96,000 at that time. The account pays 7% annually, compounded monthly. How much money do you need to start the account? Show your work.\tQuestion\u00a07.\tQuestion :\t(TCO F) A project requires an initial cash outlay of $40,000 and has expected cash inflows of $12,000 annually for 7 years. The cost of capital is 10%. What is the project&#8217;s NPV? Show your work.\tQuestion\u00a08.\tQuestion :\t(TCO F) A project requires an initial cash outlay of $60,000 and has expected cash inflows of $15,000 annually for 8 years. The cost of capital is 10%. What is the project&#8217;s payback period? Show your work.\tQuestion\u00a09.\tQuestion :\t(TCO F) A project requires an initial cash outlay of $95,000 and has expected cash inflows of $20,000 annually for 9 years. The cost of capital is 10%. What is the project&#8217;s IRR? Show your work.\tQuestion\u00a010.\tQuestion :\t(TCO F) A project requires an initial cash outlay of $40,000 and has expected cash inflows of $12,000 annually for 7 years. The cost of capital is 10%. What is the project&#8217;s discounted payback period? Show your work.\tQuestion\u00a011.\tQuestion :\t(TCO F) Company A has the opportunity to do any, none, or all of the projects for which the net cash flows per year are shown below. Projects A and C can be done together. Projects B and C can be done together. But Projects A and B are mutually exclusive. The company has a cost of capital of 18%. Which should the company do and why? You must use at least two capital budgeting methods. Show your work.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Question\u00a01. Question : (TCO G) The firm&#8217;s asset turnover measures Question\u00a02. Question : (TCO G) If Moon Corporation has an increase in sales, which of the following would result in no change in its EBIT margin? Question\u00a03. Question : (TCO <a href=\"https:\/\/www.benedictsol.com\/blogs\/fin-515-week-4-midterm\/\" class=\"read-more\">Read More &#8230;<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-216753","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216753","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=216753"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/216753\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=216753"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=216753"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=216753"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}