Question
Consider the following timeline: If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is
Consider the following timeline:
If the current market rate of interest is 7%, then the future value of this timeline as of year 3 is closest to:
a. $1,720
b. $1,500
c. $1,404
d. $1,717
Which of the following organization forms for a business does not avoid double taxation?
a. Limited Liability Company
b. Limited Partnership
c. "C" Corporation
d. "S" Corporation
The Sisyphean Company is planning on investing in a new project. This will involve the purchase of some new machinery costing $450,000. The Sisyphean Company expects cash inflows from this project as detailed below:
Year One | Year Two | Year Three | Year Four |
$200,000 | $225,000 | $275,000 | $200,000 |
The appropriate discount rate for this project is 16%.
The NPV for this project is closest to:
a. $176,270
b. $179,590
c. $450,000
d. $123,420
You are considering purchasing a new automobile that will cost you $28,000. The dealer offers you 4.9% APR financing for 60 months (with payments made at the end of the month). Assuming you finance the entire $28,000 and finance through the dealer, your monthly payments will be closest to:
a. $467
b. $527
c. $1,454
d.$457
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