Homework Answers
4. Here we need to calculate the future value. We will use the future value of $1 table as per below:
Future value = $28000 * FVIF for 2 years
where, FVIF is the future value for 2 years. Value of FVIF from the given table is $1.166
Future value = $28000 * $1.166 = $32648
5. For question 5, we need to have the present value data for year 4 as well. In the question year 4 data is missing.
Add Answer to:
yse this data for question 4 & 5
question 4 & 5
Part II. Time Value...
9. Items 65 through apply to be future value factors for l based on interest compounded...
9. Items 65 through apply to be future value factors for l based on interest compounded w o of interest tables Given below are the ve periods. Each of the items 65 to 68 is ally. Periods 8 Future Value of 1 1.080 1.166 1.260 1.360 1.469 What amount should be deposited in a bank account today to grow to $25,000 three years from today? A) $25,000 1.260 B) S25,000 x 1.260 * 3 C) $25,000 + 1.260 D) $25,000+...
8. Future value of a single amount The time value of money is a financial concept...
8. Future value of a single amount The time value of money is a financial concept that focuses on the idea that a dollar today will be worth more in the future. There are two key time value concepts: present value and future value. Looking at future value, the concept is that an amount in hand today will grow if it earns a specific rate of interest over a given period of time. This growth in value occurs not just...
8. Future value of a single amount The time value of money is a financial concept...
8. Future value of a single amount The time value of money is a financial concept that focuses on the idea that a dollar today will be worth more in the future. There are two key time value concepts: present value and future value. Looking at future value, the concept is that an amount in hand today will grow if it earns a specific rate of interest over a given period of time. This growth in value occurs not just...
9. The time value of money Consider the following scenarios: Simon Family The Simons have saved...
9. The time value of money Consider the following scenarios: Simon Family The Simons have saved $5,000 towards their goal to have $45,000 for a down payment on a house in 6 years. They will put the $5,000 in an account along with money they will deposit annually. They don’t know how much that annual deposit should be, so they’ve asked you to calculate it They have found a savings institution that will pay 6% interest. Perkette Family The Perkettes...
9. The time value of money Consider the following scenarios: Simon Family The Simons have saved...
9. The time value of money Consider the following scenarios: Simon Family The Simons have saved $5,000 towards their goal to have $30,000 for a down payment on a house in 5 years. They will put the $5,000 in an account along with money they will deposit annually. They don't know how much that annual deposit should be, so they've asked you to calculate it They have found a savingsinstitution that will pay 6% interest. Perkette Family The Perkettes have...
080) + $10,000 b. $10,000 x 1.360 x 4 c. ($10,000 x 1.080) + ($10,000 x...
080) + $10,000 b. $10,000 x 1.360 x 4 c. ($10,000 x 1.080) + ($10,000 x 1.166) + ($10,000x 1.260) + ($10,000 x 1.360) d. $10,000 x 1.080 x 4 Problem (40 points) On January 1, 2019 Lance Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate (coupon rate) of 6% payable annually. The bonds were sold to yield an effective rate (market rate) of 5%. Present value table factors are: Present value of...
Question 1. A. B. Future Value of $1 Periods 4% 1.040 1.082 5% 6% 7% 8%...
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...
Time Value of Money... More Practice 1. Calculate the amount that a person would have to...
Time Value of Money... More Practice 1. Calculate the amount that a person would have to deposit today at 4% now. would have to deposit today at 4% interest to have $10,000 20 years from Is this a present value or future value problem? Is it an annuity or single amount 2. Calculate the amount that a person would have to deposit today at 10% interest in order to have $55,000 15 years from now. Is this a present value...
Rocco Manufacturing is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful...
Rocco Manufacturing is considering following two investment proposals: Proposal X Proposal Y Investment $740,000 $508,000 Useful life 5 years 4 years Estimated annual net cash inflows received at the end of each year $154,000 $92,000 Residual value $66,000 $0 Depreciation method Straight-line Straight-line Annual discount rate 10% 9% Compute the present value of the future cash inflows from Proposal X. Present value of an ordinary annuity of $1: 8% 9% 10% 1 0.926 0.917 0.909 2 1.783 1.759 1.736 3...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal X Proposal Y Investment $10,700,000 $580,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,140,000 $103,000 Residual value $50,000 $26,000 Depreciation method Straight-line Straight-line Required rate of return 12% 13% Calculate the payback period for Proposal X Select one: O A 8 years OB. 4 years O c. 9...
9. Items 65 through apply to be future value factors for l based on interest compounded w o of interest tables Given below are the ve periods. Each of the items 65 to 68 is ally. Periods 8 Future Value of 1 1.080 1.166 1.260 1.360 1.469 What amount should be deposited in a bank account today to grow to $25,000 three years from today? A) $25,000 1.260 B) S25,000 x 1.260 * 3 C) $25,000 + 1.260 D) $25,000+...
9. The time value of money Consider the following scenarios: Simon Family The Simons have saved $5,000 towards their goal to have $30,000 for a down payment on a house in 5 years. They will put the $5,000 in an account along with money they will deposit annually. They don't know how much that annual deposit should be, so they've asked you to calculate it They have found a savingsinstitution that will pay 6% interest. Perkette Family The Perkettes have...
080) + $10,000 b. $10,000 x 1.360 x 4 c. ($10,000 x 1.080) + ($10,000 x 1.166) + ($10,000x 1.260) + ($10,000 x 1.360) d. $10,000 x 1.080 x 4 Problem (40 points) On January 1, 2019 Lance Co. issued ten-year bonds with a face value of $1,000,000 and a stated interest rate (coupon rate) of 6% payable annually. The bonds were sold to yield an effective rate (market rate) of 5%. Present value table factors are: Present value of...
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...
Time Value of Money... More Practice 1. Calculate the amount that a person would have to deposit today at 4% now. would have to deposit today at 4% interest to have $10,000 20 years from Is this a present value or future value problem? Is it an annuity or single amount 2. Calculate the amount that a person would have to deposit today at 10% interest in order to have $55,000 15 years from now. Is this a present value...
Question 4 Nubela Manufacturing is considering two alternative investment proposals with the following data: Not yet answered Marked out of 2.00 P Flag question Proposal X Proposal Y Investment $10,700,000 $580,000 Useful life 5 years 5 years Estimated annual net cash inflows for 5 years $2,140,000 $103,000 Residual value $50,000 $26,000 Depreciation method Straight-line Straight-line Required rate of return 12% 13% Calculate the payback period for Proposal X Select one: O A 8 years OB. 4 years O c. 9...
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