A bank is offering a simple interest rate of 5\%5%5, percent — that is, the bank will pay a fixed 5\%5%5, percent of an initial investment as interest each year. By contrast, a stock broker is offering a 4\%4%4, percent interest rate compounded annually: 4\%4%4, percent of the total value of the investment at the end of the year. If \$1000$1000dollar sign, 1000 is invested in the bank and \$1000$1000dollar sign, 1000 is invested with the stockbroker, after 444 years, what will be the total value of the two investments combined?

Amanda rice has just arranged to purchase a $640,000 vacation home in the bahamas with a 20 percent down payment. the mortgage has a 7 percent apr compounded monthly and calls for equal monthly payments over the next 30 years. her first payment will be due one month from now. however, the mortgage has an eight-year balloon payment, meaning that the balance of the loan must be paid off at the end of year 8. there were no other transaction costs or finance charges. how much will amanda’s balloon payment be in eight years

Problem 9-5. net present value and taxes [lo 1, 2] penguin productions is evaluating a film project. the president of penguin estimates that the film will cost $20,000,000 to produce. in its first year, the film is expected to generate $16,500,000 in net revenue, after which the film will be released to video. video is expected to generate $10,000,000 in net revenue in its first year, $2,500,000 in its second year, and $1,000,000 in its third year. for tax purposes, amortization of the cost of the film will be $12,000,000 in year 1 and $8,000,000 in year 2. the company’s tax rate is 35 percent, and the company requires a 12 percent rate of return on its films. required what is the net present value of the film project? to simplify, assume that all outlays to produce the film occur at time 0. should the company produce the film?

The face of a company is often that of the lowest paid employees who meet the customers. select one: true false