« previous next »

Author Question: You have been accepted into a prestigious private university in Southern California - ... (Read 41 times)

jjjetplane

  • Hero Member
  • *****
  • Posts: 556
on: Jul 11, 2018
You have been accepted into a prestigious private university in Southern California - congratulations Since no one from this school has ever graduated in only four years, you anticipate that you will need to make 10 semi-annual tuition payments of
 
  25,000 each with the first cash flow six months from today. If you choose to discount these cash flows at an annual rate of 6, what is the present value cost of tuition to attend your university of choice?
  A) 186,814.54
  B) 184,002.18
  C) 250,000.00
  D) 213,255.07

Question 2

Which of the following statements regarding firms and value is NOT true?
 
  A) We can create value by taking on negative net present value projects.
  B) Shareholder control in and of itself has value.
  C) Value is ultimately what someone is willing to pay for a firm.
  D) It is important to know what is being valued; the assets or the equity in a firm.


shaikhs

  • Sr. Member
  • ****
  • Posts: 312
Reply #1 on: Jul 11, 2018
Answer to Question 1

D
Explanation: D) Via Calculator: N = 52, I =6/2, PMT = 25,000, Solve for PV = 213,255.07.

Answer to Question 2

A


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

During pregnancy, a woman is more likely to experience bleeding gums and nosebleeds caused by hormonal changes that increase blood flow to the mouth and nose.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

Did you know?

The use of salicylates dates back 2,500 years to Hippocrates's recommendation of willow bark (from which a salicylate is derived) as an aid to the pains of childbirth. However, overdosage of salicylates can harm body fluids, electrolytes, the CNS, the GI tract, the ears, the lungs, the blood, the liver, and the kidneys and cause coma or death.

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Adult head lice are gray, about ? inch long, and often have a tiny dot on their backs. A female can lay between 50 and 150 eggs within the several weeks that she is alive. They feed on human blood.

McGill University's Gault Nature Reserve on Mont-Saint-Hilaire, Quebec. McGill University's Gault Nature Reserve on Mont-Saint-Hilaire, Quebec.
Areas of Mediterranean shrubland in southern California periodically burn over large areas, destroyi Areas of Mediterranean shrubland in southern California periodically burn over large areas, destroyi
Warner Bros' Tasmanian Devil at a parade in California Warner Bros' Tasmanian Devil at a parade in California
Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa Zonal wind speeds on Uranus. Shaded areas show the southern collar and its future northern counterpa
El Niño and La Niña and the Southern Ocean El Niño and La Niña and the Southern Ocean
Video: Introduction to Herpes

For a complete list of videos, visit our video library