1- Ali bought 300 shares of a stock for $ 13 and sold those 2 years later for $15 per share after receiving $2.50 per share as dividends for the year. Calculate the dollar profit and percent return earned by each investor over their respective holding periods? 2- SABIC company is considering the purchase of a new wired devices It costs $15,000 and is likely to bring in after-tax cash inflows of $5,000 in the first year, $3,500 in the second year, $12,000 in the 3rd year, and $7,000 in the 4th year. The firm has a policy of buying equipment only if the payback period is 2 years or less. Calculate the payback period of the tanning bed and state whether the owner would buy it or not. 3- Calculate the discounted payback period of the wired devices stated in Example 1 (payback period) above, by using a discount rate of 8%. 1- Ali bought 300 shares of a stock for $ 13 and sold those 2 years later for $15 per share after receiving $2.50 per share as dividends for the year. Calculate the dollar profit and percent return earned by each investor over their respective holding periods? 2- SABIC company is considering the purchase of a new wired devices It costs $15,000 and is likely to bring in after-tax cash inflows of $5,000 in the first year, $3,500 in the second year, $12,000 in the 3rd year, and $7,000 in the 4th year. The firm has a policy of buying equipment only if the payback period is 2 years or less. Calculate the payback period of the tanning bed and state whether the owner would buy it or not. 3- Calculate the discounted payback period of the wired devices stated in Example 1 (payback period) above, by using a discount rate of 8%. 4- Compute PI of expected cash flows by discounting the cash flows from Year 1 to Year 5 at 7%. Year Expected cash flow 0 - 60,000 1 13,600 2 11,000 3 6,500 4 16,000 5 12,300 A project requires an initial investment (CO) of $50,000, -5 anticipates a net cash inflow in the next 3 years of $110,000 (C1), $130,000 (C2), and $220,000 (C3), with a discount rate (r) of 13%. Calculate Net Present Value? Can you ?help to make the right decision ?help to make the right decision 6- Roseanne wants to borrow $40,000 for a period of 5 years. The lenders offers her a choice of three payment structures: - Pay all of the interest (10% per year) and principal in one lump sum at the end of 5 years; - Pay interest at the rate of 10% per year for 4 years and then a final payment of interest and principal at the end of the 5th year; - Pay 5 equal payments at the end of each year inclusive of interest and part of the principal