Present value of $1
Periods |
4% |
6% |
8% |
10% |
12% |
14% |
1 |
0.962 |
0.943 |
0.926 |
0.909 |
0.893 |
0.877 |
2 |
0.925 |
0.890 |
0.857 |
0.826 |
0.797 |
0.769 |
3 |
0.889 |
0.840 |
0.794 |
0.751 |
0.712 |
0.675 |
4 |
0.855 |
0.792 |
0.735 |
0.683 |
0.636 |
0.592 |
5 |
0.822 |
0.747 |
0.681 |
0.621 |
0.567 |
0.519 |
6 |
0.790 |
0.705 |
0.630 |
0.564 |
0.507 |
0.456 |
7 |
0.760 |
0.665 |
0.583 |
0.513 |
0.452 |
0.400 |
8 |
0.731 |
0.627 |
0.540 |
0.467 |
0.404 |
0.351 |
9 |
0.703 |
0.592 |
0.500 |
0.424 |
0.361 |
0.308 |
10 |
0.676 |
0.558 |
0.463 |
0.386 |
0.322 |
0.270 |
Present value of an Annuity of $1
Periods |
4% |
6% |
8% |
10% |
12% |
14% |
1 |
0.962 |
0.943 |
0.926 |
0.909 |
0.893 |
0.877 |
2 |
1.886 |
1.833 |
1.783 |
1.736 |
1.690 |
1.647 |
3 |
2.775 |
2.673 |
2.577 |
2.487 |
2.402 |
2.322 |
4 |
3.630 |
3.465 |
3.312 |
3.170 |
3.037 |
2.914 |
5 |
4.452 |
4.212 |
3.993 |
3.791 |
3.605 |
3.433 |
6 |
5.242 |
4.917 |
4.623 |
4.355 |
4.111 |
3.889 |
7 |
6.002 |
5.582 |
5.206 |
4.868 |
4.564 |
4.288 |
8 |
6.733 |
6.210 |
5.747 |
5.335 |
4.968 |
4.639 |
9 |
7.435 |
6.802 |
6.247 |
5.759 |
5.328 |
4.946 |
10 |
8.111 |
7.360 |
6.710 |
6.145 |
5.650 |
5.216 |
Roman Knoze is considering two investments. Each will cost $20,000 initially. Project 1 will return annual cash flows of $10,000 in each of three years. Project 2 will return $5,000 in year 1, $10,000 in year 2, and $15,000 in year 3. Roman requires a minimum rate of return of 10%. What is the net present value of Project 1? (Note: there may be a rounding error depending on the table you use to compute your answer. Choose the answer closest to the one you calculate.)
a. |
$2,530 |
|
b. |
$20,000 |
|
c. |
$22,530 |
|
d. |
$4,860 |
|
e. |
$25,670 |
Computation of Net Present Value of Project 1:
Answer is (d) $4860.
Workings:
Net Present Value = Present Value of cash inflow - Initial Cash outlay
Present Value of Cash inflow = 10000 * present value annuity factor(r,n)
= 10000*present value annuity factor(10%,3)
= 10000*2.487 = $24870
Initial Cash outlay = $20000
Net Present Value = $24870 - $20000 = $4870 (Answer differs due to rounding off error as specifies in question)
Present value of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.962 0.943 0.926 0.909...
Present value of $1 Periods 4% 6% 8% 10% 12% 14% 1 0.962 0.943 0.926 0.909 0.893 0.877 2 0.925 0.890 0.857 0.826 0.797 0.769 3 0.889 0.840 0.794 0.751 0.712 0.675 4 0.855 0.792 0.735 0.683 0.636 0.592 5 0.822 0.747 0.681 0.621 0.567 0.519 6 0.790 0.705 0.630 0.564 0.507 0.456 7 0.760 0.665 0.583 0.513 0.452 0.400 8 0.731 0.627 0.540 0.467 0.404 0.351 9 0.703 0.592 0.500 0.424 0.361 0.308 10 0.676 0.558 0.463 0.386 0.322...
QUESTION 11 Present value of an Annuity of $1 in Arrears Periods 4% 6% 8% 10% 12% 14% 1 0.962 0.943 0.926 0.909 0.893 0.877 2 1.886 1.833 1.783 1.736 1.690 1.647 3 2.775 2.673 2.577 2.487 2.402 2.322 4 3.630 3.465 3.312 3.170 3.037 2.914 5 4.452 4.212 3.993 3.791 3.605 4.433 6 5.242 4.917 4.623 4.355 4.111 3.889 7 6.002 5.582 5.206 4.868 4.564 4.288 8 6.733 6.210 5.747 5.335 4.968 4.639 9 7.435 6.802 6.247 5.759...
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $219000 and is expected to generate cash inflows of $88000 at the end of each year for three years. The net present value of this project is $222728. $44000. $22273. $3728.
Present Value of an Annuity of 1 Periods 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3 2.577 2.531 2.487 A company has a minimum required rate of return of 10%. It is considering investing in a project that costs $80000 and is expected to generate cash inflows of $25000 at the end of each year for three years. The profitability index for this project is 1.27. 1.00. 0.78. 0.79.
The reason that a discount factor in Year 3 is less than a discount factor in Year 2 is that Question 34 options: Kenner Company is considering two projects. Project A Project B Initial investment $85,000 $24,000 Annual cash flows $20,676 $ 6,011 Life of the project 6 years 5 years Depreciation per year $14,167 $ 4,800 Present value of an Annuity of $1 in Arrears Periods 8% 10% 12% 14% 1 0.926 0.909 0.893 0.877 2 1.783...
Question 1.
A. B.
Future Value of $1 Periods 4% 1.040 1.082 5% 6% 7% 8% 9% 10% 12% 14% 16% 1.060 1.124 1.070 1.140 1,300 1 1.050 1.103 1.158 1.080 1.090 1.100 1.210 1.120 1.254 1.160 2 1.145 1.166 1.188 1.346 1.191 1.405 3 1.125 1.170 1.225 1.311 1,403 1.260 1,295 1.331 1.464 1,482 1.561 1.811 2.100 1.689 1.925 4 1.216 1.262 1.360 1.412 1.574 1.338 1,539 5 1.217 1.276 1.469 1,611 1.762 1.772 1.949 1.265 1.316 2.195 2.502...
Options are:
10%
12%
8%
6%
Please help me out
Reece Corporation is considering the purchase of a machine that would cost $24,388 and would have a useful life of 6 years. The machine would generate S5,600 of net annual cash inflows per year for each of the 6 years of its life. Using the information below, the internal rate of return on the machine would be closest to which of the following? Present Value of $1 10% 0.683 0.621...
Present Value of S1 8% 10.990 0.980 0.971 0.962 0.952 0.943 0.935 0.926 0.917 0.909 0.8930.8770.8700.862 0.847 0.833 2 0.980 0.961 0.943 0.925 0.907 0.890 0.873 0.857 0.842 0.826 0.79707690.7560.743 0.718 0.694 3 0.971 0.942 0.915 0.889 0.864 0.840 0.816 0.7940.772 0.7510.7120.6750.6580.640.609 0.579 4 0.961 0.924 0.888 0.855 0.823 0.792 0763 0.735 0.708 0.683 0.6360.592 0.5720.552 0.516 0.482 50.951 0.906 0.863 0.822 0.784 0.747 0.713 0.681 0.650 0.6210.56705190497 0476 0.4370.402 6 0.942 0.888 0.837 0.790 0746 0.705 0.666 0.630 0.596...
Calculate the present value of the following amounts:
1.
$14 comma 00014,000
at the end of
tenten
years at
88%
2.
$14 comma 00014,000
a year at the end of the next
tenten
years at
88%
(If using present value tables, use factor amounts rounded to
three decimal places, X.XXX. Round your final answers to the
nearest whole dollar.)
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present value
Calculate the present value of the following amounts: 1. $5,000 at the end of five years at 6% 2. $5,000 a year at the end of the next five years at 6% (lf using present value tables, use factor amounts rounded to three decimal places, X.XX. Round your final answers to the nearest whole dollar) (Click the icon to view Present Value of $1 table) Click the icon to view Present Value of Ordinary Annuity of 51 table.)...