Homework Answers
rate positively ..
| Ans a) | Computation of present value | |||||
| we have to use financial calculator | ||||||
| put in calculator- | ||||||
| FV | 0 | |||||
| PMT | -1000000 | |||||
| I | 12% | |||||
| N | 20 | |||||
| Compute PV | $7,469,444 | |||||
| Present value = | 7,469,444 | |||||
| Ans B) | Present value = | 8,000,000 | ||||
| Ans C) | we have to use financial calculator | |||||
| put in calculator- | ||||||
| FV | 0 | |||||
| PMT | -700000 | |||||
| I | 12% | |||||
| N | 20 | |||||
| Compute PV | $5,228,611 | |||||
| Present value =2000000+5228611 | $7,228,611 | |||||
| Ans 2 | Correct answer is option B) | |||||
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