A-1 |
present value |
7500 |
-7500 |
|
present value of alternative 2 = Using present value function in MS excel |
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 2200 fv = 0 type =0 |
PV(10%,9,2200,0,0) |
($12,669.85) |
|
present value of alternative 3 = Using present value function in MS excel |
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 0 fv = 31000 type =0 |
PV(10%,9,0,31000,0) |
($13,147.03) |
|
A-2 |
alternative 3 - |
31000 received at the end of year 9 |
||
b-2 |
present value |
7500 |
-7500 |
|
present value of alternative 2 = Using present value function in MS excel |
pv(rate,nper,pmt,fv,type) rate =11% nper = 9 pmt = 2200 fv = 0 type =0 |
PV(11%,9,2200,0,0) |
($12,181.50) |
|
present value of alternative 3 = Using present value function in MS excel |
pv(rate,nper,pmt,fv,type) rate =10% nper = 9 pmt = 0 fv = 31000 type =0 |
PV(11%,9,0,31000,0) |
($12,118.67) |
|
b-2 |
alternative 2 - |
22000 received each year for 9 years |
Your grandfather has offered you a choice of one of the three following alternatives: $7,500 now:...
Your grandfather has offered you a choice of one of the three following alternatives: $10,500 now $5,000 a year for nine years or $61,000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. 0-1. Assuming you could eam 7 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) Present...
9 Problems Your grandfather has offered you a choice of one of the three following alternatives. $13,500 now $6,500 a year for nine years, or 591.000 at the end of nine years. Use Appendix Band Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods -1. Assuming you could earn 9 percent annually, compute the present value of each alternative (Do not round Intermediate calculations. Round your final answers to 2 decimal...
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer uYour grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate...
Your grandfather has offered you a choice of one of the three following alternatives: $5,500 now; $1,250 a year for five years; or $17,000 at the end of five years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods.a-1. Assuming you could earn 6 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.)1250 -> Present value = _________ a-2. If you...
1. (15 points) Your grandfather has offered you a choice of one of the theefollowing alternatives: $4500 now; $1000 at the beginning of each period for six years, or $8000 at the end of six years. Assuming you could earn 12% annually. Required: (1) Calculate the Present Value of each choice (2) State which alternative should you choose?
Your father offers you a choice of $110,000 in 12 years or $47,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 10 percent, what is the present value of the $110,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a-2. Which offer should you choose? $110,000 in 12 years $47,500 today b-1. Now assume the...
Your father offers you a choice of $125,000 in 11 years or $45,500 today. Use Appendix B as an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. If money is discounted at 8 percent, what is the present value of the $125,000? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) a-2. Which offer should you choose? $45,500 today $125,000 in 11 years b-1. Now assume the offer is...
Appendix D tor an approxdemate answer, but places.) round intermediate calculations Round your tinal answers to 2 decimal $31,000 received at end of nine years O s2.200 tinal answers to 2 decimal places) O 531000 received at end of nine years $7,500 received new
Mrs. Crawford will receive $7,500 a year for the next 18 years from her trust. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. If a 11 percent interest rate is applied, what is the current value of the future payments? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Present value
How much would you have to Invest today to receive the following? Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. $7,800 each year for 20 years at 6 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.) Present value 553,000 each year for 25 years at 12 percent. (Do not round Intermediate calculations. Round your final answer to 2 decimal places.)...