Questions from Business Mathematics

Q: A New Brunswick Power bond issue carrying a 7.6%

A New Brunswick Power bond issue carrying a 7.6% coupon matures on November 1, 2031. At what price did $1000 face value bonds trade on June 10, 2019, if the yield to maturity required by the bond mark...

Q: Quality Grocer makes its own bulk “trail mix” by mixing

Quality Grocer makes its own bulk “trail mix” by mixing raisins and peanuts. The wholesale cost of raisins is $3.75 per kg and the cost of peanuts is $2.89 per kg. To the nearest 0.1 kg, what amounts...

Q: Calculate the quoted price on June 10, 2019, of the

Calculate the quoted price on June 10, 2019, of the bond.

Q: The Cowichan Regional District borrowed $500,000 through the Provincial

The Cowichan Regional District borrowed $500,000 through the Provincial Finance Authority to purchase fire-fighting equipment. At the end of every six months, the regional district must make a sinking...

Q: The expected profits from an $80,000 investment are $

The expected profits from an $80,000 investment are $15,000 in Year 1 and $20,000 in each of Years 2 to 7. 1. What is the investment’s payback period? 2. If the firm’s required payback period is four...

Q: The investment committee of a company has identified the following seven projects

The investment committee of a company has identified the following seven projects with positive NPVs. If the board of directors has approved a $4.5 million capital budget for the current period, which...

Q: Machine X costs $50,000 and is forecast to generate

Machine X costs $50,000 and is forecast to generate an annual profit of $16,000 for five years. Machine Y, priced at $72,000, will produce the same annual profit for ten years. The trade-in value of X...

Q: A U-Print store requires a new photocopier. A Sonapanic

A U-Print store requires a new photocopier. A Sonapanic copier with a four-year service life costs $35,000 and will generate an annual profit of $14,000. A higher-speed Xorex copier with a five-year s...

Q: The provincial government’s Ministry of Fisheries requires a new patrol boat.

The provincial government’s Ministry of Fisheries requires a new patrol boat. The price of a Songster is $90,000, and its annual operating costs will be $10,000. It will be sold for about $20,000 afte...

Q: A potato farmer needs to buy a new harvester. Two types

A potato farmer needs to buy a new harvester. Two types have performed satisfactorily in field trials. The SpudFinder costs $100,000 and should last for five years. The TaterTaker also costs $100,000...