the value of X in question 7 is $3255

solve each question in detail calculations

Please remember to show ALL of your calculations. 1. You are entering your second semester in Canadore College and have won a scholarship award of $2500. You decide to deposit this in a mutual fund that is expected to grow at a compounded annual rate of 2% the first five years and then 5% afterwards. In 20 years, what will the bank balance value of this investment be? 2. Jane has just completed her residency in Cardiology and plans to invest $35,000 per year at the end of the year into a quarterly compounding retirement account at 2% for 30 years. What will be the account balance be at the end of year 20 ? 3. Company Goldmining has decided on possibly pursuing a $220,000 investment for 20 years. They are expecting to receive $1.2 million at the end of 20 years. As a financial advisor, they have come to you to find the present value of this investment. Find the present value if the discount rate is: I. 4% II. 6% III. 12% IV. 16% 4. You have just won the lottery and have 1.5 million in cash. You have decided to purchase a company, but are still deciding between Company A and Company B. The data indicates that Company A generates cash flow of $120,000 each year for the next 6 years. Company B has a projected cash flow of the following for the next 6 years: $80000,$110000,$120000,$130000,$145000,$150000. Which is a better investment and explain why? The cost of capital is 12%. 5. You have graduated from your MD program and your grandparents have gifted you $2,000,000 as a graduation gift. You decide to invest this money in buying an existing physician clinic. Analyze the data below (remember to show your work) and explain which you would choose. Cost of Capital is 12\%. See Appendix A. 6. Georgian Hill Medical Care Center expects Project A and Project B to generate the following cash flows (see Appendix B). Determine the NPV for both projects at a cost of capital at 12 percent and 17 percent. At 12 percent discount rate, which project should be accepted? At 17 percent discount rate, which project should be accepted? 7. You are a bond evaluation specialist. The current market rate is at 8%. James comes in today with a Company AB bond that has a par value of $X. The bond rate is 12% and the maturity term is 10 years. He would like to know what the current value of this bond in the event he wants to sell it. Explain also what would happen if the market rate suddenly increased to 12% and 13% in the next few days. X will be a different value for each student in class. To calculate your $X value for the question, take the last three numbers of your student ID and multiply by 5. For example, if your student ID is (A00177400), then you take 4005= $2000. Therefore, your bond value par value for this question is $2000. Remember to calculate your own value!! 8. Define the following terms in your own words. Please use only 1-2 sentences. I. Inflation II. Opportunity Cost III. Compound Interest IV. Bond V. Future Value VI. Net Present Value VII. Internal Rate of Return VIII. Salvage Value Appendix A Appendix B