Calculating Present Values [LO1] An investment will pay you $80,000 in 10 years. If the appropriate discount rate is 9 percent compounded daily, what is the present value?
PV = FV / (1 + r)^t
PV = $80,000 / [1 + (0.09/365)]^(10 × 365)
PV = $80,000 / [1 + (0.09/365)]^3,650
PV = $32,529.18
Calculating Present Values [LO1] An investment will pay you $80,000 in 10 years. If the appropriate...
An investment will pay you $23,000 in 7 years. The appropriate discount rate is 10 percent compounded daily. What is the present value? Multiple Choice $11,802.64 $11,993.68 $10,851.43 $11,765.23 $11,422.56
An investment will pay you $22,000 in 7 years. The appropriate discount rate is 10 percent compounded daily. Required: What is the present value? rev: 09_17_2012 Multiple Choice $11,253.70 $11,472.22 $10,925.92 $10,379.63 $11,289.48
An investment will pay you $20,000 in 8 years. The appropriate discount rate is 11 percent compounded daily. Required: What is the present value? $8,545.66, $8,296.76, $8,678.53, $7,881.92, $8,711.60
An investment will pay you $23,000 in 6 years. The appropriate discount rate is 8 percent compounded daily. What is the present value? Multiple Choice O $13,52113 0 $14,944.40 O $14,232.77 $14.493.90 $14,65975
An investment will pay you $42,000 in 8 years. If the appropriate discount rate is 6.8 percent compounded daily, what is the present value? (Use 365 days a year. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
1. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? 2. Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cash flows. If the...
Present Value and Multiple Cash Flows [LO1] Seaborn Co. has identified an investment project with the following cash flows. If the discount rate is 1O perent. (Questios what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent? 1. BASIC Questions 1-1 Cash Flow $ 950 1,040 1,130 1,075 Year 2. Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $6,000 per year for nine years, whereas...
Present Value and Multiple Cash Flows [LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent? Please do not use excel. Please type it.
Present Value and Multiple Cash Flows[LO1] Investment X offers to pay you $4,200 per year for eight years, whereas Investment Y offers to pay you $6,100 per year for five years. Which of these cash flow streams has the higher present value if the discount rate is 5 percent? If the discount rate is 15 percent?
3.Future Value and Multiple Cash Flows [LO1] Fuente, Inc., has identified an investment project with the following cash flows. If the discount rate is 8 percent, what is the future value of these cash flows in Year 4? What is the future value at a discount rate of 11 percent? At 24 percent? Year Cash Flow 1 $1,075 2 1,210 3 1,340 4 1,420 9.Calculating Annuity Values [LO2] Prescott Bank offers you a five-year loan for $75,000 at an annual...