Your firm is considering a project with a discount rate of 10%. If you start the project today, your firm will incur an initial cost of $480 and will receive cash inflows of $300 per year for 3 years with the first cashflow occurring one year from today. If you instead wait one year to start the project, the initial cost will rise to $520 and the cash flows will increase to $350 a year for the following 3 years with the first cashflow occurring two years from today. Would your firm be better off starting the project now or waiting to start the project in one year? Explain clearly including an estimate of the value of the option to wait.

Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.

The following information is available for ellen's fashions, inc. for the current month. book balance end of month $ 7 comma 000 outstanding checks 700 deposits in transit 4 comma 500 service charges 120 interest revenue 45 what is the adjusted book balance on the bank reconciliation?

Mae jong corp. issues $1,000,000 of 10% bonds payable which may be converted into 10,000 shares of $2 par value ordinary shares. the market rate of interest on similar bonds is 12%. interest is payable annually on december 31, and the bonds were issued for total proceeds of $1,000,000. in accounting for these bonds, mae jong corp. will: (a) first assign a value to the equity component, then determine the liability component. (b) assign no value to the equity component since the conversion privilege is not separable from the bond.(c) first assign a value to the liability component based on the face amount of the bond.(d) use the “with-and-without” method to value the compound instrument.