I need help on solving these problems. Could somebody help

Rasmussen College - F490c - Module 03 Assignment Problem 1 1. Your grandfather gives you a choice for your college money. He will either give you a) $2000 one year from now would you choose if the discount rate is currently 10%? Show your calculations. I would probably take the option A, because cash flow tomorrow is not worth as much as it is today a) $2000 one year from now, or b) $3000 four years from now. Which option Rasmussen College - F490c - Module 03 Assignment Problem 2 2. Your company bought a machine a year go at the cost of $12,000. You as the financial manager estimated the m years with no salvage value. Today, a new, more efficient machine costs $21,000 with an estimated life of 5 yea If you sell the old machine now, a scrap dealer is offering $10,000. The new machine is expected to generate in go ahead and buy the new machine or keep the old one running? Explain your calculations. Discount rate: 8% Explanation: Straight line depreciation is the default method used to gradually reduce the carrying amount of a fixed asset over its useful life. I would of probably take the new machine if that is garanted that with generate incemental cash flow of $2,680 per year. al manager estimated the machine's useful life (straight line depreciation) at 6 h an estimated life of 5 years (straight line depreciation) and no salvage value. e is expected to generate incremental cash flow of $2,680 per year. Would you lations. Rasmussen College - F490c - Module 03 Assignment Problem 3 3. What is the price of the bond with the following assumptions? Compounding: Coupon rate: YTM: Par: $ Interest rate: Bond Price: Semiannual 10% 5 1,000 12% 91.67 Rasmussen College - F490c - Module 03 Assignment Problem 4 4. Your company paid a $2.50 dividend per share at the end of the year. The dividend is expected to grow by 10% market price per share is expected to be $50 at the end of the third year. The market requires a 14% return. W Share price: 0.25 152.4 pected to grow by 10% each year for the next 3 years. The stock quires a 14% return. What is the price per share now? Rasmussen College - F490c - Module 03 Assignment Problem 5 5. Use any of the capital budgeting decision rules to determine whether or not to accept the following investmen Explain your reasoning. Investment Year Cash Flow 0 $ (31,000) 1 $ 10,000 2 $ 20,000 3 $ 10,000 4 $ 10,000 5 $ 5,000 Explanation: If I would of have to accept this offer at a 14% cost of capital, it showes me that withing five years I would have to pay more than $31,000. I would of have to propbably pass on this investment at look for something with lower percentage. pt the following investment. Assume the cost of capital of 14%. cost of capital, it showes me ore than $31,000. stment at look for something