Chernobai Corporation has equity with a market value of $12.1 million. It also has debt with the market value of $4.20 million. The corporation is wondering if a new project that is riskier than the corporation should be undertaken or not. And so, the corporation decided to use a risk adjustment factor of 1.7 percent to adjust the rate of return that it will use as the applicable discount rate for the project. The new project will require an immediate investment of $2.46 million. The project will generate profits of $641,000 every year for the next 6 years. The corporation's cost of equity is 11.59 percent. Its pretax cost of debt is 5.01 percent. The corporate income tax rate that the corporation faces is 35 percent. Calculate the new project's Net Present Value.

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.

Which of the following is a characteristic that can be used to guide the design of service systems? a. services cannot be inventoried. b. services are all similar. c. quality work means quality service. d. services businesses are inherently entrepreneurial. e. even service businesses have internal services.

Joe pays ann to mow his lawn and ann mows vanna's lawn by mistake. vanna peers out her window and sees ann mowing, yet says nothing to ann about her mistake since vanna needs to have her lawn mowed. when ann approaches vanna for payment, vanna refuses, arguing that she never asked ann to mow her lawn. under these circumstances, ann can recover payment from vanna under: