Year | Cash Flow | Present Value Factor | Present Value Factor | Present value of cash flows |
0-5 | -£ 39,000.00 | PVOA(12%,5) | 3.60478 | -£ 140,586.27 |
6-10 | £ 18,000.00 | PVOA(12%,10) - PVOA(12%,5) | 2.04545 | £ 36,818.04 |
11-30 | £ 68,000.00 | PVOA(12%,30) - PVOA(12%,11) | 2.40496 | £ 163,537.34 |
31-40 | £ 38,000.00 | PVOA(12%,40) - PVOA(12%,30) | 0.18859 | £ 7,166.52 |
Present Value of Future Net Cashinflows | £ 66,935.64 | |||
The minimum price Stacy should accept is 66,935.64 | ||||
Instructions If money is worth 2%2% per quarter, compounded quarterly, which option would you recommend that...
During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,120 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $62,250 each year. For the next 20 years (11–30),...
During the past year, Stacy McGill planted a new vineyard on 150 acres of land that she leases for $30,120 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1–5). In the next 5 years (6–10), Stacy estimates that the vines will bear grapes that can be sold for $62,250 each year. For the next 20 years (11–30),...
During the past year, Maria McGill planted a new vineyard on 150 acres of land that she leases for $31,610 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1-5). In the next 5 years (6-10), Maria estimates that the vines will bear grapes that can be sold for $62,540 each year. For the next 20 years (11-30),...
During the past year, Pearl McGill planted a new vineyard on 150 acres of land that she leases for $31,210 a year. She has asked you, as her accountant, to assist her in determining the value of her vineyard operation. The vineyard will bear no grapes for the first 5 years (1-5). In the next 5 years (6-10), Pearl estimates that the vines will bear grapes that can be sold for $63,370 each year. For the next 20 years (11-30),...
During the past year, Julia McGill planted a new vineyard on 150
acres of land that she leases for $30,380 a year. She has asked
you, as her accountant, to assist her in determining the value of
her vineyard operation.
The vineyard will bear no grapes for the first 5 years (1–5). In
the next 5 years (6–10), Julia estimates that the vines will bear
grapes that can be sold for $62,770 each year. For the next 20
years (11–30),...
What would you pay for a $200,000 debenture bond that matures in
15 years and pays $10,000 a year in interest if you wanted to earn
a yield of:
2%? (Round factor values to 5 decimal places, e.g.
1.25124 and final answer to 0 decimal places, e.g.
458,581.)
Amount to Pay
3%? (Round factor values to 5 decimal places, e.g.
1.25124 and final answer to 0 decimal places, e.g.
458,581.)
Amount to Pay
4%? (Round factor values to 5 decimal...
b) if you apply "payback criterion" which option would you
choose? Singer or composer? (if you use excel to solve this
question, please copy your solution)
c) if you apply "NPV" criterion, which option would you choose?
why? (if you use excel to solve this question, please copy your
solution and explain it verbally)
d) If you apply "IRR" criterion, which investment you choose?
why? (if you use excel to solve this question, please copy your
solution and explain it...