FIN 534 – Homework Chapter 4
Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. d. The last payment would have a higher proportion of interest than the first payment. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments.

2. Which of the following statements is CORRECT?
a. If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0. b. If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost. c. To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the PV of the negative CFs. This is, essentially, a trialand-error procedure that is easy with a computer or financial calculator but quite difficult otherwise. d. If you solve for I and get a negative number, then you must have made a mistake. e. If CF0 is positive and all the other CFs are negative, then you cannot...

...Cinthia Gutierrez
Acc 307
HomeworkChapter4
3. Allen visits Reno, Nevada, once a year to gamble. This year his gambling loss was $25,000. He commented to you, “At least I didn’t have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000. “What are the relevant tax issues for Allen?
Allen received something of value from the casino. Under the broad concept of income, the...

...utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools used today. Second, since systems development is extremely complex, DFDs and flowcharts are tools...

...Brandon Powell
FIN 534 Chapter4
Question 1
Answer: C
A, D, and E can be ruled out as incorrect by simple reasoning. “B” is also incorrect because interest in the first year would be Loan amount × interest rate regardless of the life of the loan, so the interest payment would be identical for the first payment. Think about the situation where r = 0%, statement “C” is the "most logical guess." One could also set up an amortization schedule and change the numbers...

...and P. DeMarzo. 2007. Corporate Finance. 2nd Edition. Pearson, Addison-Wesley with MyLab access. The ISBN is 0-13-295-040-5.
(2) Lecture Notes. The lecture notes will be posted weekly on Blackboard, before class.
(3) MyFinanceLab: All homework and quizzes are posted on MyFinanceLab. Instructions available at the end of this syllabus. Course ID: mousavi28617
Blackboard Site
A Blackboard course site is set up for this course. Each student is expected to check the...

...Chapter4Homework Answer Sheet
Name:
ID Number:
Instructions
Download this form and type in your answers. When you are done, upload the finished form. Each answer is worth 5 points.
For Exercises 18-29, type your answers in this table:
18. | 19. | 20. | 21. | 22. | 23. | 24. | 25. | 26. | 27. | 28. | 29. |
F | A | D | C | B | E | F | A | D | C | B | E |
For Exercise 31, type your answer below:
A gate accepts one or more input...

...Chapter 3 Homework
1. Manufacturing overhead is not assigned to jobs because that would make the costs direct costs and not overhead costs. The total overhead costs are estimated at the beginning of the year. (p. 90)
2. The four-step process used to compute predetermined overhead rate starts with 1st estimating the total amount of the allocation based that will be required for next period’s estimated level of production. The 2nd step is to estimate the total...

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MAT 540 Week 4HomeworkChapter 15 problems
2. The manager of the Carpet City outlet needs to make an accurate forecast of the demand for SoftShag carpet (its biggest seller).If the manager does not order enough carpet from the carpet mill,customers will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months:
Month Demand for Soft Shag Carpet (1,000...