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Periods Compound Present Capital Compound Present Amount Worth Sinking Recovery Amount Worth Factor Factor Fund Factor Factor

Present Value and Net Present Value Problem 1 To solve this problem, use the complete 5% Compound Interest Factor Table in th

Problem 2 Solving the following problems requires the use of the “Compound Interest Factors spreadsheet tool on the Blackboar

Problem 3 a. What is the present value of a series of 10 annual payments of $1000, assuming a prevailing 5% interest rate? b.

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Answer #1

Problem I a p = F x (present value Factor) looo x 4.3294 =$4399.47 P= F x (Paesent value factor) 1000 x 7.72173=$7721.73 o prinvestment A $=800 x 4.32= 8 $3456 Investment B &= Goox4.32 82592 investment B having better deal because, investment B yield

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