Complete this quiz with your answers and submit online
Please name your file as: “FirstName_LastName_HIA220_Spring2022_Quiz_3”
Please complete this quiz by yourself! Tufts takes cheating / plagiarism very seriously, and the penalties are severe. Showcase your own work/calculations for the applicable questions. Quiz #3 is worth 10% of your total grade.
There is also ONE file associated with this quiz: Yoland Research Institute Case.pdf
1) Which would be the best financial investment for an organization when comparing two investment opportunities? Select one:
a. The one with the lowest future value
b. The one with the lowest discount rate
c. The one with the smallest IRR
d. The one with the largest net present value
2) Read the attached Yoland Research Institute case. Assuming a cost of capital of 5% and that $60,000 is the correct profit estimate each year for the next 10 years, what is the NPV rounded to the nearest dollar? Select one and show your work
a. $463,304
b. $233,304
c. $186,476
d. $63,304
3) Read the attached Yoland Research Institute case.What is the IRR? Select one and show your work
a. 32.0%
b. 2.8%
c. 8.1%
d. 21.0%
4) You are the state treasurer and have oversight over the Massachusetts state lottery. An administrator from Tufts Medical Center (who has a really adorable son) just won the $16 million dollar jackpot, which is to be paid as $1 million dollars each year for the next 16 years. You need to calculate the lump sum payout assuming a cost of capital of 5%. Because you work for the lottery, you want to maximize the lottery profits. What is the largest lump sum amount you would offer for a payout today? Select one and show your work
a. $10,837,770
b. $7,329,600
c. $5,075,700
d. $10,998,472
5) You are the manager of a fertility clinic, and you need to purchase an ultrasound for the providers. The equipment's acquisition cost is $65,000. You have arranged financing with the bank for a 15-year loan at an 8% interest rate. What is your monthly payment? Select one and show your work
a. $7594
b. $5200
c. $633
d. $621
6) Your very wise budgeting and management instructor has convinced you that you should start saving money. You have decided to put away $500 per month, and you are guaranteed a 6% interest rate that compounds monthly. You are committed to doing this for 20 years. At the end of those 20 years, assuming you start with nothing and make your first $500 payment at the end of the first month, how much will you have total in the bank? Select one and show your work
a. $229,874
b. $69,790
c. $231,021
d. $9,867,929,788
7) What are the 4 ways a market can be segmented? Provide an example of a company or organization that segments the market primarily in this manner. Briefly explain each choice.
8) Explain the differences between Series A, B, & C Funding