Question 2. a) What is difference between Present Value and the future value of an asset?...
What is the maximum amount you would pay for an asset that generates an income of $250,000 at the end of each of five years, if the opportunity cost of using funds is 8 percent? Instructions: Do not round intermediate calculations. Round only your final calculation to the nearest penny (two decimal places). Use a negative sign (-) where appropriate. $ _____________
What is a contra account? What is the difference between present value and future value of an investment? Illustrate your discussion with an example.
The computation of the current value of an asset using the present value of future cash flows method does not include the A. Productive life of the asset. B. Applicable interest rate. C. Future amounts of cash receipts or cash savings. D. Cost of alternate uses of funds given up.
What is the difference between future value and present value? What data do you need to do a future value or present value calculation? How could business owners use this information?(Be specific)
What is the difference between present value of a single sum and present value of an ordinary annuity? What is the differences between Future Value of single sum and future value of an ordinary annuity?
Present and Future Value of an Uneven Cash Flow Stream An investment will pay $200 at the end of each of the next 3 years, $400 at the end of Year 4, $500 at the end of Year 5, and $600 at the end of Year 6. If other investments of equal risk earn 9% annually, what is this investment's present value? Its future value? Do not round intermediate calculations. Round your answers to the nearest cent. Present value: $ ...
(Present value) What is the present value of the following future amounts? a. $800 to be received 10 years from now discounted back to the present at 11 percent. b. $300 to be received 8 years from now discounted back to the present at 9 percent. c. $1,050 to be received 13 years from now discounted back to the present at 5 percent. d. $1,050 to be received 4 years from now discounted back to the present at 20 percent. a. What is the present...
(Present value) What is the present value of the following future amounts? a. $800 to be received 8 years from now discounted back to the present at 11 percent. b. $200 to be received 7 years from now discounted back to the present at 7 percent. c. $1150 to be received 13 years from now discounted back to the present at 3 percent. d. $1250 to be received 4 years from now discounted back to the present at 18 percent.
Present and Future Value of an Uneven Cash Flow Stream An investment will pay $100 at the end of each of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of equal risk earn 6% annually. What is its present value? Round your answer to the nearest cent. What is its future value? Round your answer to the nearest cent....
Present value concept Answer each of the following questions. a. What single investment made today, earning 8% annual interest, will be worth $5,700 at the end of 10 years? b. What is the present value of $5,700 to be received at the end of 10 years if the discount rate is 8%? c. What is the most you would pay today for a promise to repay you $5.700 at the end of 10 years if your opportunity cost is 8%?...