In seven years, when he is discharged from the Air Force, Steve wants to buy an $29,000 power boat. Click here to view E...
In seven years, when he is discharged from the Air Force, Steve wants to buy an $29,000 power boat.
Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables.
Required:
What lump-sum amount must Steve invest now to have the $29,000 at the end of seven years if he can invest money at: (Round your final answers to the nearest whole dollar amount.)
|
Homework Answers
calculate present value
| Present value | ||
| 1 | Ten percent | 29000*0.513 = 14877 |
| 2 | Twelve percent | 29000*0.452 = 13108 |
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In seven years, when he is discharged from the Air Force, Steve wants to buy an $29,000 power boat. Click here to view E...
Exercise 13A-3 Basic Present Value Concepts [LO13-7] In three years, when he is discharged from the Air Force, Steve wan...
Exercise 13A-3 Basic Present Value Concepts [LO13-7] In three years, when he is discharged from the Air Force, Steve wants to buy an $13,000 power boat. Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount must Steve invest now to have the $13,000 at the end of three years if he can invest money at: (Round your final answer to the nearest whole dollar amount.)
Fraser Company will need a new warehouse in seven years. The warehouse will cost $350,000 to...
Fraser Company will need a new warehouse in seven years. The warehouse will cost $350,000 to build Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $350,000 available at the end of the seven-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Ten percent 2. Seven...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $450.000 available at the end of the ten-year period? Assume that the company...
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to...
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the nine-year period? Assume that the company...
Fraser Company will need a new warehouse in eleven years. The warehouse will cost $360,000 to...
Fraser Company will need a new warehouse in eleven years. The warehouse will cost $360,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $360,000 available at the end of the eleven-year period? Assume that the company can invest money at: (Round your final answers to the nearest whole dollar amount.) Present Value 1. Eight percent 2. Six...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to build To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the five-year period? Assume that the company...
Fraser Company will need a new warehouse in eight years. The warehouse will cost $410,000 to...
Fraser Company will need a new warehouse in eight years. The warehouse will cost $410,000 to build Click here to view Exhibit 138-1 and Exhibk 13B-2 to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $410,000 available at the end of the eight-year period? Assume that the company can invest money at (Round your final answer to the nearest whole dollar amount.) Present Value 1. Twelve percent 2. Thirteen...
Brief Exercise 6-2 Steve Bautista needs $28,800 in 4 years. Click here to view factor tables...
Brief Exercise 6-2
Steve Bautista needs $28,800 in 4 years.
Click here to view factor tables
What amount must he invest today if his investment earns 8%
compounded annually? What amount must he invest if his investment
earns 8% annual interest compounded quarterly? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answers
to 0 decimal places, e.g. 458,581.)
Investment at 8% annual interest
$
Investment at 8% annual interest, compounded quarterly
$
Fraser Company will need a new warehouse in six years. The warehouse will cost $370,000 to...
Fraser Company will need a new warehouse in six years. The warehouse will cost $370,000 to build. Click here to view Exhibit 128:1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $370.000 available at the end of the six year period? Assume that the company can invest money at: (Round your final answers to the nearest whole dollar amount.) 1. Four percent 2. Nine percent
Julie has just retired. Her company's retirement program has two options as to how retirement benefits...
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $130,000 immediately as her full retirement benefit. Under the second option, she would receive $19,000 each year for 5 years plus a lump-sum payment of $75,000 at the end of the 5-year period. Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factors) using tables....
Fraser Company will need a new warehouse in seven years. The warehouse will cost $350,000 to build Click here to view Exhibit 13B-1 and Exhibit 13B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $350,000 available at the end of the seven-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) Present Value 1. Ten percent 2. Seven...
Fraser Company will need a new warehouse in ten years. The warehouse will cost $450,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $450.000 available at the end of the ten-year period? Assume that the company...
Fraser Company will need a new warehouse in nine years. The warehouse will cost $440,000 to build. To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the nine-year period? Assume that the company...
Fraser Company will need a new warehouse in eleven years. The warehouse will cost $360,000 to build. Click here to view Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $360,000 available at the end of the eleven-year period? Assume that the company can invest money at: (Round your final answers to the nearest whole dollar amount.) Present Value 1. Eight percent 2. Six...
Fraser Company will need a new warehouse in five years. The warehouse will cost $440,000 to build To determine the appropriate discount factor(s) using tables, click here to view Exhibit 12B-1. Alternatively, if you calculate the discount factor(s) using a formula, round to three (3) decimal places before using the factor in the problem. Required: (a) What lump-sum amount should the company invest now to have the $440,000 available at the end of the five-year period? Assume that the company...
Fraser Company will need a new warehouse in eight years. The warehouse will cost $410,000 to build Click here to view Exhibit 138-1 and Exhibk 13B-2 to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $410,000 available at the end of the eight-year period? Assume that the company can invest money at (Round your final answer to the nearest whole dollar amount.) Present Value 1. Twelve percent 2. Thirteen...
Brief Exercise 6-2
Steve Bautista needs $28,800 in 4 years.
Click here to view factor tables
What amount must he invest today if his investment earns 8%
compounded annually? What amount must he invest if his investment
earns 8% annual interest compounded quarterly? (Round
factor values to 5 decimal places, e.g. 1.25124 and final answers
to 0 decimal places, e.g. 458,581.)
Investment at 8% annual interest
$
Investment at 8% annual interest, compounded quarterly
$
Fraser Company will need a new warehouse in six years. The warehouse will cost $370,000 to build. Click here to view Exhibit 128:1 and Exhibit 128-2. to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $370.000 available at the end of the six year period? Assume that the company can invest money at: (Round your final answers to the nearest whole dollar amount.) 1. Four percent 2. Nine percent
Julie has just retired. Her company's retirement program has two options as to how retirement benefits can be received. Under the first option, Julie would receive a lump sum of $130,000 immediately as her full retirement benefit. Under the second option, she would receive $19,000 each year for 5 years plus a lump-sum payment of $75,000 at the end of the 5-year period. Click here to view Exhibit 128-1 and Exhibit 128-2, to determine the appropriate discount factors) using tables....
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