answer 10 statistic question need it in 5 hours

2. What is the minimum amount of positive cash flow required in year 6 for you to be indifferent to doing the project.

3. What report is used to describe a company’s financial position at the end of a reporting period? Briefly describe its contents

4. You have just purchased 1000 shares of stock at $70 per share. Your analysis indicates that the stock price will increase 10% per year. How much will your investment be worth in 5 years? When will the market price have doubled? Assume no dividend payments for this calculation.

5. Suppose you make an annual contribution of $5000 to your investment account at the end of each year for 5 years. If the account earns 10% annually, how much can be withdrawn early in the 11th year.

6. What will be the amount accumulated by each of these present investments?

a. $5000 in 7 years at 7% compounded annually

b. $7250 in 15 years at 8% compounded quarterly

c. $9000 in 30 years at 6% compounded monthly

d. $12000 in 8 years at 5% compounded continuously

7. If a bank advertises a savings account that pays a 7% nominal interest rate compounded continuously, what is the effective annual percentage rate?

8. If the interest rate is 8% compounded continuously, what is the required quarterly payment to repay a loan of $10,000 in five years.

9. You are considering two types of machines for a manufacturing process.

· Machine A has a first cost of $75,000 and its salvage value at the end of 6 years of estimated service life is $20,000. The operating cost of this machine are estimated to be $6,000 per year. Extra income taxes are estimated at $2400 per year.

· Machine B has a first cost of $40,000 and its salvage value at the end of 6 years of estimated service life is estimated to be negligible. The annual operating cost will be $11,000.

Compare these two mutually exclusive alternatives by the present worth method ar I = 13%.

10. How many years will it take an investment to triple if the interest rate of 8% compounded annually.5. You are the CEO of Blue and Gold Furniture Company (a small household goods manufacturing firm) and have just been briefed on some promising new production machinery which will enable 3D printing of numerous types of personalized furniture.

Projected cash flows detailed below. The 3D printer has a 5 year life cycle, with no scrap value. Discuss your assessment of this project’s viability and profitability. Calculate net cash flow for each year, payback period, total return on investment, internal rate of return, and net present worth. State any assumptions (i.e. Minimal attractive rate of return). Explain your reasoning behind those assumptions.

EXTRA CREDIT (up to 10 additional points):

There is much debate over whether or not fast food restaurants could bear the impacts of an increase from a $7.25/hour to a $15/hour minimum wage. In the context of this class, evaluate the statement: “If McDonalds were to double the salaries and benefits of all of its employees, from the CEO down to the minimum wage cashiers, it would still only cost an extra 68 cents for a Big Mac.” What information would you need to perform this analysis? What assumptions would you have to make? Without having the data readily available, do you believe it is a true statement? How about if the minimum wage tripled? Would that change your answer? (Keep your answer less than two pages.)

Money Flow

Money Flow

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 -4000 -2500 3500 -4500 -2000 0 3000