Calculating percentage profits
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1.
value:
2.00 points
You did NOT receive full credit for this question in previous attempt.
Problem 8-1 Cash discount [LO1]
Compute the cost of not taking the following cash discounts. |
(a) | 2/18, net 40. (Use 360 days in a year. Round your intermediate calculations and final answers to 2 decimal places . Omit the “%” sign in your response.) |
Cost of lost discount | on futures contracts | $ [removed] |
(c-1) | After considering the hedging, what is the net cost to the firm of the increased interest expense of $72,000? (Omit the “$” sign in your response.) |
Net cost | $ [removed] |
(c-2) | What percent of this $72,000 cost did the treasurer effectively hedge away? (Round your answer to 2 decimal places. Omit the “%” sign in your response.) |
Percentage hedged away | [removed] % |
(d) | Indicate whether there would be a profit or loss on the futures contracts if interest rates went down. | ||||
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21.
value:
1.00 points
You did NOT receive full credit for this question in previous attempt.
Problem 9-2 Present value [LO3]
What is the present value of: |
Use Appendix B. |
(a) | $8,100 in 14 years at 7 percent? (Round “PV Factor” to 3 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.) |
Present value | $ [removed] |
(b) | $16,800 in 9 years at 8 percent? (Round “PV Factor” to 3 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.) |
Present value | $ [removed] |
(c) | $26,500 in 20 years at 6 percent? (Round “PV Factor” to 3 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.) |
Present value | $ [removed] |
rev: 07-22-2011
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22.
value:
2.00 points
You did NOT receive full credit for this question in previous attempt.
Problem 9-4 Present value [LO4]
You will receive $6,800 three years from now. The discount rate is 10 percent. |
(a) | What is the value of your investment two years from now? Multiply $6,800 × .909 (one year’s discount rate at 10 percent). (Round “PV Factor” to 3 decimal places and final answer to the nearest dollar amount. Omit the “$” sign in your response.) |
Value of investment | $ [removed] |
(b) | What is the value of your investment one year from now? Multiply your answer to part a by .909 (one year’s discount rate at 10 percent). (Round “PV Factor” to 3 decimal places and final answer to 2 decimal places. Omit the “$” sign in your response.) |