Asmall local power plant (lpp) is being considered in a north american location known for its high temperature. power can be produced based on this temperature. with high costs of fossil fuels, this particular lpp may be economically attractive to investors. for an initial investment of $100k, annual net revenues are estimated to be $20k in year 1 and increase by 5k each year until year 5. with the lpp's marr at 8% per year and using the pw method, what is the value at the acceptable discounted payback period for this project? for example, if the payback period is 3 years, find the corresponding cumulative present value of all the cash flows up to year 3. round value to the nearest integer.

How are interest rates calculated by financial institutions? financial institutions generally calculate interest as (1) interest or (.

From what part of income should someone take savings?

Variable rate cd’s = $90 treasury bills = $150 discount loans = $20 treasury notes = $100 fixed rate cds = $160 money market deposit accts. = $140 savings deposits = $90 fed funds borrowing = $40 variable rate mortgage loans $140 demand deposits = $40 primary reserves = $50 fixed rate loans = $210 fed funds lending = $50 equity capital = $120 a. develop a balance sheet from the above data. be sure to divide your balance sheet into rate-sensitive assets and liabilities as we did in class and in the examples. b. perform a standard gap analysis and a duration analysis using the above data if you have a 1.15% decrease in interest rates and an average duration of assets of 5.4 years and an average duration of liabilities of 3.8 years. c. indicate if this bank will remain solvent after the valuation changes. if so, indicate the new level of equity capital after the valuation changes. if not, indicate the amount of the shortage in equity capital.