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Valuation of Assets. Using the information provided in the following table, find the value of each asset.

Cash Flow

Asset End of year Amount Appropriate requited return

A 1 $5,000 18%

2 5,000

3 5,000

B 1 Through ∞ $ 300 15%

C 1 $0 16%

2 0

3 0

4 0

5 35,000

D 1 Through 5 $ 1,500 12%

6 8,500

E 1 $ 2,000 14%

2 3,000

3 5,000

4 7,000

5 4,000

6 1,000

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Collen Von
Collen VonLv2
28 Sep 2019

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Related questions

You are considering three independent projects, Project X , Project Y, and Project Z. Given the following cash-flow information:

Project X Project Y Project Z

Initial outlay -$1,000 -$10,000 -$5,000

Inflow year 1 600 5,000 1,000

Inflow year 2 300 3,000 1,000

Inflow year 3 200 3,000 2,000

Inflow year 4 100 3,000 2,000

Inflow year 5 500 3,000 2,000

1a. Calculate the payback period for each project (show calculations or tables)

ANSWERS:

1b. Calculate the discounted payback period for each project using a rate of return of 10%. (Show calculations or tables)

ANSWER:

1c. Calculate the net present value of each project using a required rate of return of 12%. (Show calculations or tables)

ANSWER:

1d. Based on your results, which project would you choose and why?

ANSWER:

Please help with the below problem. I don't understand how to solve. Please show work and steps so I will understand.

Apply cluster analysis to the numerical data in the excel file credit approval decisions. Analyze the clusters and determine if cluster analysis would be a useful classification method for approving or rejecting loan application.

Modified Credit Approval Decisions

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 725 20 $11,320 25% 1

1 573 9 $7,200 70% 0

1 677 11 $20,000 55% 1

0 625 15 $12,800 65% 0

0 527 12 $5,700 75% 0

1 795 22 $9,000 12% 1

0 733 7 $35,200 20% 1

0 620 5 $22,800 62% 0

1 591 17 $16,500 50% 0

1 660 24 $9,200 35% 1

1 700 19 $22,000 18% 1

1 500 16 $12,500 83% 0

1 565 6 $7,700 70% 0

0 620 3 $37,400 87% 0

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 523 14 $27,000 79% 0

1 811 20 $13,400 3% 1

0 763 2 $11,200 70% 0

0 555 4 $2,500 100% 0

0 617 9 $8,400 34% 0

1 642 13 $16,000 25% 1

0 688 3 $3,300 11% 1

1 649 12 $7,500 5% 1

1 695 15 $20,300 22% 1

1 701 9 $11,700 15% 1

0 635 7 $29,100 85% 0

0 507 2 $2,000 100% 0

1 677 12 $7,600 9% 1

0 485 5 $1,000 80% 0

0 582 3 $8,500 65% 0

1 699 17 $12,800 27% 1

1 703 22 $10,000 20% 1

0 585 18 $31,000 78% 0

1 620 8 $16,200 55% 0

1 695 16 $9,700 11% 1

1 774 13 $6,100 7% 1

1 802 10 $10,500 5% 1

0 640 7 $17,300 59% 0

0 536 14 $27,000 79% 0

1 801 20 $13,400 3% 1

0 760 2 $11,200 70% 0

0 567 4 $2,200 95% 0

0 600 10 $12,050 81% 0

1 702 11 $11,700 15% 1

1 636 8 $29,100 85% 0

0 509 3 $2,000 100% 0

0 595 18 $29,000 78% 0

1 733 15 $13,000 24% 1

New Data to Classify

Homeowner Credit Score Years of Credit History Revolving Balance Revolving Utilization Decision

1 700 8 $21,000 15%

0 520 1 $4,000 90%

1 650 10 $8,500.00 25%

0 602 7 $16,300.00 70%

0 549 2 $2,500.00 90%

1 742 15 $16,700.00 18%

On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Assume the company has an expected return equal to the market return. (Negative values should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.)
Date Market Return (%) Company Return (%)
11/7 .8 .4
11/8 .6 .4
11/9 −.5 −.3
11/10 −.6 −.5
11/11 1.6 1.0
11/14 −.4 2.1
11/15 .1 .1
11/16 .9 1.0
11/17 .5 .6
11/18 −.5 .0
11/19 .6 .2
Daily Cumulative
Days from Abnormal Abnormal
Announcement Return Return
−5
−4
−3
−2
−1
0
1
2
3
4
5

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