Answer all the $5$ questions separately.

$1)$ You are working as a treasurer for a Toronto$-$based long$-$term healthcare company. Your company has $$10,000,000$ of excess cash and you notice that,

on July $3,2024$ the Canadian overnight REPO rate average $($CORRA$)$ is $4\mathrm{.}80\%.$ If you consider depositing your company's excess cash $($ $$10,000,000)$ for

$12$ consecutive days in this overnight rate, calculate the after$-$tax interest income assuming that the tax rate on interest income is $40\%.$ Also, assume that

there is no transaction cost $($Do not use the $ sign. If your answer is $$123,456\mathrm{.}78,$ enter $123456\mathrm{.}78).$

Numeric Response

$2)$ A company is considering switching from a cash$-$only policy to a net $30$ credit policy. The price per unit is $$500$ and the variable cost per unit is $$380.$ The company

currently sells $1,400$ units per month. Under the proposed policy, the company expects to sell $1,500$ units per month. The monthly compounded APR is $18\%.$ Calculate

the NPV of this switch. Assume that there are $30$ days in one month. $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit any

commas and the $ sign in your response. For example, an answer of $$1,000\mathrm{.}50$ should be entered as $1000\mathrm{.}50).$

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$3)$ A firm offers credit terms of $\frac{2}{16},$ net $35.$ What is the effective annual rate on the credit extended if a customer foregoes the discount on a $$5,000$

purchase? Assume that there are $365$ days in one year. $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit the $\%$

sign in your response. For example, an answer of $15\mathrm{.}39\%$ should be entered as $15\mathrm{.}39.)$

Numeric Response

$4)$ A company is deciding whether to lease or buy new equipment. If purchased, the equipment would cost $$24,000.$ Consider the following information:

PV of Lease Payments Before$-$tax $=$$$16,000$

PVCCATS $=$$$5,000$

PV of Lease Payments Tax Shield $=$$$6,000$

PV of Salvage Value $=$$$3,000$

Based on the above information, what is the NAL? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit any commas and the

$ sign in your response. For example, an answer of $$1,000\mathrm{.}50$ should be entered as $1000\mathrm{.}50.)$

Numeric ResponseA company is deciding whether to lease or buy new equipment that can be purchased for $$42,000.$ If purchased, the equipment will need to be serviced at the end of

each year. Consider the following information:

PVCCATS $=$$$8,000$

PV of Lease Payments Before$-$Tax $=$$$45,000$

PV of Salvage Value $=$$$4,800$

PV of Lease Payments Tax Shield $=$$$16,000$

PV of Annual Service Costs After$-$tax $=$$$4,000$

Based on the above information, what is the present value of buying? $($Do not round intermediate calculations. Round the final answer to $2$ decimal places. Omit any

commas and the $ sign in your response. For example, an answer of $$1,000\mathrm{.}50$ should be entered as $1000\mathrm{.}50.)$

Numeric Response