GDP calculations: 1. Calculate real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? 2. Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase? 3. Now calculate real GDP for 2004 and 2005 using 2005 prices. By what percent did real GDP grow?

(See attached file for full problem description) Quantities Produced Quantities Produced Prices Prices CDs Tennis Racquets CDs Tennis racquets Year 2004 100 200 20 110 Year 2005 120 210 22 120 1. Calculate real GDP for 2004 and 2005 using 2004 prices. By what percent did real GDP grow? 2. Calculate the value of the price index for GDP for 2005 using 2004 as the base year. By what percent did prices increase? 3. Now calculate real GDP for 2004 and 2005 using 2005 prices. By what percent did real GDP grow?

Calculate the key financial metrics for this capital budgeting project. Payback period, net present value, internal rate of return and modified rate of return

Calculate the key financial metrics for this capital budgeting project. These key metrics must include payback period, net present value, internal rate of return and modified rate of return. Describe what each of these metrics tells us. Use data to calculate the the following Capital Budgeting Decision Methods as well as explain each of the methods: Key Financial Data for ABC Company project Project's discount rate 10% Time Period (in years) 0 1 2 3 Cash out ($10,000) Cash in $7,500 $7,500 $7,500 - assume cash flows ... click for more

Present value of a 10-year, pure discount bond

What is the present value of a 10-year, pure discount bond paying $1,000 at maturity if the appropriate interest rate is: a. 5 percent b. 10 percent c. 15 percent

Creating Cash Budgets

A company had sales of $50k in March and $60k in April. Forecast sales for May, June, and July are $70k, $80k, and $100k, respectively. The firm has a cash balance of $5k in May 1 and wishes to maintain a minimum cash balance of $5k. Given the following data, prepare a cash budget for the months of May, June and July. 1) The firm makes 20% of sales for cash, 60% are collected in the next month, and the remaining 20% are collected in the second month following sale. 2) The firm receives other income of $2,000 per month. 3) The firm's actual or expected purchases, all made for cash, are $50k, $70k and $80k for the months of May, June and July, respectively. 4) Rent is $3k per month. ... click for more

NASDAQ and AMEX

You have been asked to write a report for a group of new stock brokers about the American Stock Exchange and the NASDAQ. Visit both the American Stock Exchange (AMEX): http://www.amex.com, and the NASDAQ: http://www.nasdaq.com and write a 2-3 page paper on how the two exchanges operate. Make sure to address the following three questions: How are AMEX and NASDAQ similar, if at all? How are the two exchanges different from one another, if at all? How has the Former WorldCom Inc. Chief Executive Bernard Ebber's case affected WorldCom Inc., and the Telecommunication industry? Explain. (Hint: You may visit each site's Press Room/Release for possible leads). You may first want to ... click for more