our co-worker Dan says he was given two discount factor (DF) tables, as shown. DFa 1...

Question

Question

our co-worker Dan says he was given two discount factor (DF) tables, as shown.

DFa	1	.833	.694	.579	.482	.402
Dfb	1.0	.87	x	.658	.572	.497

what is the return rate represented by the “b” table? (rounded to nearest %)

And what is X?

Answer 1

Answer #1

rate in %	(current value /value after a year)^(1/n)-1	(1/.087)^(1/1) -1	14.94%
rate for table B is	14.94%

Value of X	value a year before/(1+discount rate)	.87/(1.1494)	0.757

Answer 2

Similar Homework Help Questions

Solve for the missing information pertaining to each investment proposal. Using the tables in Exhibits 26–3...

Solve for the missing information pertaining to each investment proposal. Using the tables in Exhibits 26–3 and 26-4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. a. $40,000 to be received 20 years from today. b. $24,000 to be received annually for 10 years. c. $16,000 to be received annually for five years, with an additional $20,000 salvage value expected at the end of the fifth year. d. $30,000 to be...
USULU Using the tables in Exhibits 26–3 and 26–4, determine the present value of the following...

USULU Using the tables in Exhibits 26–3 and 26–4, determine the present value of the following cash flows, discounted at an annual rate of 15 percent. (Round "PV factors" to 3 decimal places. Do not round intermediate calculations and round your final answers to the nearest whole dollar amount.) a. $40,000 to be received 20 years from today. b. $24,000 to be received annually for 10 years. c. $16,000 to be received annually for five years, with an additional $20,000...