# finance

### BUS 475 Finance Topics Answer Guide | June 2017

Which of the following alternatives will give the lowest present value? Receiving \$450 at the end of two years at an interest rate of 9% compounded Receiving \$650 at the end of three years at an interest rate of 10% compounded annually Receiving \$550 at the end of two years at an [...]Read more

### Precision Machines Case Study Tutorial Step-by-Step – Part 3

Part 3: Calculating Cash Flows Now its time for the hard part – calculating the cash flows for for precision machines. We can do this in four distinct steps, which are best outlined in the pictures below.Read more

### Precision Machines Case Study Tutorial Step-by-Step – Part 2

Part 2: Cash Disbursements for Precision Machines The second step in this lesson is to set the cash disbursements for precision machines. Most of the values have been filled in, so it’s just a matter making a few simple calculations with excel. Material Purchases Material [...]Read more

### Precision Machines Case Study Tutorial Step-by-Step – Part 1

Precision Machines Project Details The precision machines case study is an exercise in Excel that will test your ability to format cells with formulas. We are going to go through each requirement step-by-step in order to help you understand how to approach this problem and [...]Read more

### Calculating Present Value with Varying Deposits: What is the present value of a \$1,400 deposit…

Calculating Present Value with Varying Deposits Student Question: What is the present value of a \$1,400 deposit at the end of year 1 and another \$700 deposit at the end of year 5 if the interest rate is 8%? Solving this problem requires us to determine the impact of varying [...]Read more

### Case: Cash Budget XYZ Corporation Solution

Problem Details XYZ Corporation is a furniture company that just closed its balance sheet in December with a cash balance \$60 million. Its December 2014 sales were \$200 million and material purchases were 120 million. The sales of next twelve months in 2015 (in millions) [...]Read more

### Solution Guide: (Net present value calculation) Big Steve’s, makers of swizzle sticks

NPV for Big Steve’s Swizzle Sticks Big Steves, makers of swizzle sticks, is considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of \$100,000 and will generate net cash inflows of \$18,000 per year for 10 years. NPV using a [...]Read more

### Ngata Corp Issued 18 Year Bonds – Solution Guide ACC 402

Ngata Corp Bond Solution Ngata Corp. issued 18-year bonds 2 years ago at a coupon rate of 9.7 percent. The bonds make semiannual payments. If these bonds currently sell for 101 percent of par value, the YTM is Solution Guide 97% x 100 = \$97 100 x 11% x PVIFA [...]Read more

### Colwood Corp Bonds at 7.5% – Solution Guide

Colwood Corp Bonds Colwood Corp. has 8 percent coupon bonds making annual payments with a current yield of 7.5 percent. How many years do these bonds have left until they mature? Assume the par value of a bond is \$1,000. Solution – Annual Coupon Payment Annual coupon [...]Read more

### Cash Flow and Source of Value Definition

Cash Flow Definition Cash flow can be defined as the movement of liquid assets within an organization or industry. This encompasses both cash inflow and outflow. Companies use the “Statement of Cash Flow” to report this information and is broken down into three [...]Read more