Homework Answers
Answer:D.$4887000
Investment amount = $3000000
Future value rate = 5%
Period = 10 years
Future Value @ 5% for 10 years = $3000000 x 1.629 = $4887000
Add Answer to:
On a whim you purchased a soratch-off lottery ticket at the gas station. it must have...
Brenda plans to reduce her spending by $90 a month. Calculate the future value of this...
Brenda plans to reduce her spending by $90 a month. Calculate the future value of this increase in savings over the next 18 years. (Assume an annual deposit to her savings account, and an annual interest rate of 8 percent.) Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value Period 1% 10% 201 202 2.06 1 2 203 3,091 2. 2.31 .11 3.242 3.03 3.06 3.246 3.184 4,375 2.09...
Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final...
Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) Annual Deposit Rate of Return Number of Years Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings S 2% 8% 10 2.600 2.600 2,600 2,600 4% 10% Exhibit 1-B Future Value (Compounded Sum) of $1 Pald In at the End of Each Period for a Glven Number of Time Periods (an...
3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 4% 1.000 2.040 3.122 4.246 5.416...
3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 Compound Sum of an Annuity of $1 (FVIFA) 6% 7% 8% 9% 1.000 1.000 1.000 1.000 2.060 2.070 2.080 2.090 3.184 3.215 3.246 3.278 4.375 4.440 4.506 4.573 5.637 5.751 5.867 5.985 6.975 7.153 7.336 7.523 8.394 8.654 8.923 9.200 9.897 10.260 10.637 11.028 11.491 11.978 12.488 13.021...
River Wild is considering purchasing a water park in Oakland, California, for $1,950,000.The new facility will...
River Wild is considering purchasing a water park in Oakland,
California, for $1,950,000.The new facility will generate annual
net cash inflows of $495,000 for eight years. Engineers estimate
that the facility will remain useful for eight years and have no
residual value. The company uses straight-line depreciation. Its
owners want payback in less than five years and an ARR of 10% or
more. Management uses a 14% hurdle rate on investments of this
nature.
Requirements
1.Compute the payback period, the...
Water Nation is considering purchasing a waterpark in San Antonio, Texas, for $2.200,000. The new facility...
Water Nation is considering purchasing a waterpark in San Antonio, Texas, for $2.200,000. The new facility will generale annual net cash inflows of $505.000 for ten years Engineers estimate that the facility will remain useful for ten years and have no residual value. The company uses straight-line depreciation its owners want payback in less than five years and an ARR of 12 or more Management uses a 10% hurde rate on investments of this nature Click the icon to view...
Use the NPV method to determine whether Preston Products should invest in the following projects Poct...
Use the NPV method to determine whether Preston Products should invest in the following projects Poct Act 200 000 and grea t cash flow of 550 000 Preston Productores an annual return of onrectA - Project cost $390.000 ander e n of 570.000 Preston Products and an a r m of 10 on investments of this mature Click the icon to the presentant e con low the presentata Click the icon to view the future value annuty to the con...
Your grandmother would like to share some of her fortune with you. She offers to give...
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose) 1. $7,750 a year at the end of each of the next seven years 2. $50,250 (ump sum) now 3. $100,250 (ump sum) seven years from now Calculate the present value of each scenario using an 8 % interest rate. Which scenario yields the highest present value? Would your preference change if...
Assume you make the following investments: You invest a lump sum of $7,550 for four years...
Assume you make the following investments: You invest a lump sum of $7,550 for four years at 14% interest. What is the investment's value at the end of four years? b. In a different account earning 14% interest, you invest $1,888 at the end of each year for four years. What is the investment's value at the end of four years? What general rule of thumb explains the difference in the investments' future values? (Click the icon to view the...
Print 6. Listed below are three lottery payout options. (Click the icon to view the lottery...
Print 6. Listed below are three lottery payout options. (Click the icon to view the lottery payout options.) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using a 6% interest rate, what is the future value of each payout option? b. Rank your preference of payout options. c. Does computing the future value rather than the present value of the options change your preference of...
P12-56A (similar to) Question Help You are planning for a very early retirement. You would like...
P12-56A (similar to) Question Help You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $240,000 per year for the next 40 years (based on family history, you think you'll live to age 80). You plan to save for retirement by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 12%...
Brenda plans to reduce her spending by $90 a month. Calculate the future value of this increase in savings over the next 18 years. (Assume an annual deposit to her savings account, and an annual interest rate of 8 percent.) Use Exhibit 1-B. (Round time value factor to 3 decimal places and final answer to 2 decimal places.) Future value Period 1% 10% 201 202 2.06 1 2 203 3,091 2. 2.31 .11 3.242 3.03 3.06 3.246 3.184 4,375 2.09...
Using Exhibit 1-B, complete the following table. (Round FVA factors to 3 decimal places and final answers to the nearest whole dollar.) Annual Deposit Rate of Return Number of Years Investment Value at the End of Time Period Total Amount of Investment Total Amount of Earnings S 2% 8% 10 2.600 2.600 2,600 2,600 4% 10% Exhibit 1-B Future Value (Compounded Sum) of $1 Pald In at the End of Each Period for a Glven Number of Time Periods (an...
3% 1.000 2.030 3.091 4.184 5.309 6.468 7.662 8.892 10.159 4% 1.000 2.040 3.122 4.246 5.416 6.633 7.898 9.214 10.583 5% 1.000 2.050 3.153 4.310 5.526 6.802 8.142 9.549 11.027 12.578 14.207 Compound Sum of an Annuity of $1 (FVIFA) 6% 7% 8% 9% 1.000 1.000 1.000 1.000 2.060 2.070 2.080 2.090 3.184 3.215 3.246 3.278 4.375 4.440 4.506 4.573 5.637 5.751 5.867 5.985 6.975 7.153 7.336 7.523 8.394 8.654 8.923 9.200 9.897 10.260 10.637 11.028 11.491 11.978 12.488 13.021...
River Wild is considering purchasing a water park in Oakland,
California, for $1,950,000.The new facility will generate annual
net cash inflows of $495,000 for eight years. Engineers estimate
that the facility will remain useful for eight years and have no
residual value. The company uses straight-line depreciation. Its
owners want payback in less than five years and an ARR of 10% or
more. Management uses a 14% hurdle rate on investments of this
nature.
Requirements
1.Compute the payback period, the...
Water Nation is considering purchasing a waterpark in San Antonio, Texas, for $2.200,000. The new facility will generale annual net cash inflows of $505.000 for ten years Engineers estimate that the facility will remain useful for ten years and have no residual value. The company uses straight-line depreciation its owners want payback in less than five years and an ARR of 12 or more Management uses a 10% hurde rate on investments of this nature Click the icon to view...
Use the NPV method to determine whether Preston Products should invest in the following projects Poct Act 200 000 and grea t cash flow of 550 000 Preston Productores an annual return of onrectA - Project cost $390.000 ander e n of 570.000 Preston Products and an a r m of 10 on investments of this mature Click the icon to the presentant e con low the presentata Click the icon to view the future value annuty to the con...
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose) 1. $7,750 a year at the end of each of the next seven years 2. $50,250 (ump sum) now 3. $100,250 (ump sum) seven years from now Calculate the present value of each scenario using an 8 % interest rate. Which scenario yields the highest present value? Would your preference change if...
Assume you make the following investments: You invest a lump sum of $7,550 for four years at 14% interest. What is the investment's value at the end of four years? b. In a different account earning 14% interest, you invest $1,888 at the end of each year for four years. What is the investment's value at the end of four years? What general rule of thumb explains the difference in the investments' future values? (Click the icon to view the...
Print 6. Listed below are three lottery payout options. (Click the icon to view the lottery payout options.) Rather than compare the payout options at their present values, compare the payout options at their future value ten years from now. a. Using a 6% interest rate, what is the future value of each payout option? b. Rank your preference of payout options. c. Does computing the future value rather than the present value of the options change your preference of...
P12-56A (similar to) Question Help You are planning for a very early retirement. You would like to retire at age 40 and have enough money saved to be able to draw $240,000 per year for the next 40 years (based on family history, you think you'll live to age 80). You plan to save for retirement by making 20 equal annual installments (from age 20 to age 40) into a fairly risky investment fund that you expect will earn 12%...
Most questions answered within 3 hours.
-
1. A motorcycle rider travels along a straight line with
constant velocity. He then throws a...
asked 2 minutes ago -
The freezing point of water H2O is 0.00°C at 1 atmosphere. How
many grams of manganese(II)...
asked 2 minutes ago -
explain the motives and methods for intrusion of the MS and Linux
operating systems
asked 2 minutes ago -
Are our social identities a) chosen for us or b) open to
negotiation? Pick a position...
asked 10 minutes ago -
A charge of -6 micro-coulombs is placed at the origin, a charge
of +7 micro-coulombs is...
asked 16 minutes ago -
What is the volume occupied by 0.254 mol of helium gas at 1.32
atm and 308...
asked 26 minutes ago -
The person in the drawing is standing on crutches. Assume that
the force exerted on each...
asked 30 minutes ago -
What’s in a name? A rose by any other name would smell
as sweet.” Although this...
asked 36 minutes ago -
A vending machine automatically pours soft drinks into cups. The
amount of soft drink dispensed into...
asked 38 minutes ago -
4. Atom hybridization changes in many chemical reactions. In
each of the following reactions, determine what...
asked 42 minutes ago -
1) Action potential
a) Explain how an action potential moves down a cell wall. Be
very...
asked 43 minutes ago -
Suppose you fell into an accretion disc that swept you into a
supermassive black hole. On...
asked 49 minutes ago