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Question content area top Part 1 ​(Present value of a​ perpetuity)  At a discount rate of 17.50​%, find the present value of a perpetual payment of ​$2,500 per year. If the discount rate were lowered to 8.75​%, half the initial​ rate, what would be the value of the​ perpetuity?       Question content area bottom Part 1 a. If the discount rate were 17.50​%, the present value of the perpetuity is ​ $enter your response here. ​ (Round to the nearest​ cent.) Part 2 b.  If the discount rate were lowered to 8.75​%, half the initial​ rate, the present value of the perpetuity is ​ $enter your response here. ​ (Round to the nearest​ cent.)

Question content area top Part 1 ​(Related to Checkpoint​ 6.5)  ​(Present value of a growing​ perpetuity)  What is the present value of a perpetual stream of cash flows that pays ​$2,500 at the end of year one and the annual cash flows grow at a rate of 2​% per year​ indefinitely, if the appropriate discount rate is 13​%? What if the appropriate discount rate is 11​%?       Question content area bottom Part 1 a.  If the appropriate discount rate is 13​%, the present value of the growing perpetuity is ​ $enter your response here. ​ (Round to the nearest​ cent.) Part 2 b.  If the appropriate discount rate is 11​%, the present value of the growing perpetuity is ​ $enter your response here. ​ (Round to the nearest ​ cent.)

E Question 52 What is the present value of 20 payments of $1,000 each received every 18 months at a discount rate of 8%? A) $6,134 B $6,325 $7,360 D) $8,431 $9,123

Question content area top Part 1 ​(Present value of a​ perpetuity)  At a discount rate of   17.50​%, find the present value of a perpetual payment of ​$   5,000 per year.  If the discount rate were lowered to   8.75​%, half the initial​ rate, what would be the value of the​ perpetuity?           Question content area bottom Part 1 a. If the discount rate were   17.50​%, the present value of the perpetuity is​ $   enter your response here . ​ (Round to the nearest​ cent.) Part 2 b.  If the discount rate were lowered to   8.75​%, half the initial​ rate, the present value of the perpetuity is​ $   enter your response here . ​ (Round to the nearest​ cent.)

Carter Company is considering a project with an initial investment of $600,500 that is expected to produce cash inflows of $131,000 for ten years. Carter's required rate of return is 16%. E (Click on the icon to view Present Value of $1 table.) (Click on the icon to view Present Value of Ordinary Annuity of $1 table.) 14. What is the NPV of the project? 15. What is the IRR of the project? Is this an acceptable project for Carter? 16. 14. What is the NPV of the project? (Enter the factor amount to three decimal places, X.XXX. Round the present value of the annuity to the nearest whole dollar. Use parentheses or a minus sign for a negative net present value.) Annuity PV Factor (i=16%, n=10) Net Cash Present Years Inflow Value 1- 10 Present value of annuity Investment Net present value

QUESTION 6 Seaborn Co. has identified an investment project with the following cash flows. Year Cash Flow $950 1,050 1,320 1,200 1 2 3 4 If the discount rate is 10 percent, what is the present value of these cash flows? 3542.76 3578.84 3418.66 4470.00 3847.03 Click Save and Submit to save and submit. Click Save All Answers to save all answers. SEP 28 30 tv ♫ A

QUESTION 15 An investment pays $X in one year, $300 in two years, and $500 in three years. The total present value of all the cash flows (including X) is equal to $1.400. If the discount rate is 6 percent, what is X? O 750.99 O 779.71 O 708.48 O 713.19 O 755.98

Question content area top Part 1 ​(Present value of a growing​ perpetuity)  What is the present value of a perpetual stream of cash flows that pays $10,000 at the end of year one and then grows at a rate of 4​% per year​ indefinitely? The rate of interest used to discount the cash flows is 12​%.       Question content area bottom Part 1 The present value of the growing perpetuity is ​$enter your response here. ​ (Round to the nearest​ cent.)

Question 14.11 Consider two annuities that have the same yield and make annual payments. The first annuity is a level 3-year annuity-due, and its Macaulay duration is 0.96. The second annuity is a level 4-year annuity-due, and its Macaulay duration is X. Calculate X. A 1.1 B 1.3 C 1.4 D 2.0 E 2.4

ences Problem 6-1 Present Value and Multiple Cash Flows [LO1] Mendez Company has identified an investment project with the following cash flows. Year Cash Flow $800 1,090 1,350 1,475 1234 a. If the discount rate is 7 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What the present value at 17 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 25 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Present value at 7% b. Present value at 17% c. Present value at 25% 4

Question 8.18 A perpetuity-due pays 1 per year, and its present value is 26. An increasing perpetuity-due pays X immediately, 2X in one year, 3X in two years, and so on. The present value of the increasing perpetuity-due is 4,732. What is the amount of the 8th payment made by the increasing perpetuity-due? A 56 В 58 С 61 D 63 E 64

id 1 :uonsenn siu i 29 o Consider the following two projects: Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Discount Project C/F Alpha C/F C/F C/F C/F C/F C/F C/F Rate -79 20 25 30 35 40 N/A N/A 12% Beta - 80 25 25 25 25 25 25 25 13% The net present value (NPV) for project alpha is closest to: A. $31 B. $25 OC. $21 D. $38 Click to select your answer. MacE esc D00 O O O 0

QS 11-14 (Algo) Net present value of an annuity LO P3 Pena Company is considering an investment of $21,555 that provides net cash flows of $6,800 annually for four years. (a) If Pena Company requires a 8% return on its investments, what is the net present value of this investment? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round your present value factor to 4 decimals.) (b) Based on net present value, should Pena Company make this investment? Complete this question by entering your answers in the tabs below. Required A What is the net present value of this investment? Years 1-4 Required B Net present value Net Cash Flows X PV Factor

Problem 10 Determine the present value of each perpetuity shown in the following table. Perpetuity Annual Amount Discount Rate A 8% $ 30,000 100,000 20,000 60,000 ABCD 265 12

Question 15 What is the present value of your investment if you deposited $100.00 into your bank account at the beginning of each quarter for 10 years if the bank pays interest is 6% compounded semi-annually? a. $2,854.90 b. $3,036.46 c. $1,628.23 d. $3042.28 e. $900.17

C Question 10 Assume that you have just purchased an investment at Year O that will give you payments of $100 in each of Years 1 through infinity (a perpetuity), and an additional $200 in each of Years 10 through infinity (a second perpetuity), and an additional $300 in each of Years 20 through infinity (a third perpetuity). Also assume that the appropriate nominal, annual discount rate is 9 percent. Given this information, determine the maximum that you should have been willing to pay for this investment. O $3,563.20 O $3,953.51 O $392.27 O $2,782.58 O $3,172.89

enters Will and Jane Sparks are establishing a college fund for their 1-year-old daughter, Jennifer. They want to save enough now to pay college tuition at the time she college (17 years from now). If her tuition is projected to be $40,000 for a two-year degree, what annual sinking fund payment should they establish if the annual interest is 8%? Click the icon to view the table. The annual sinking fund payment is S. (Round to the nearest cent as needed.)

Question 8 Find the value of P for which the inflows will equal the outflows. Find the effective rate first. Rate pycd 8% Inflows Year Outflows 0 -P 1 2 3 4 5 6 7 8 9 10 -2P -4P -8P -16P O $3,786 O $4,376 O $5,172 O $5,246 $24,000 $30,000 $36,000 $42,000 $48,000 $54,000

11 Find Simple Interest, A sum of $78000, is invested from March 13 until Dec 20 of the same year at 14.25% simple interest.  using any two methods of computing Simple Interest:

plan A plan B plan C Down payment 15,777 28,458 16,632 Annual payments 27,556 10,207 25,948 Years 20 20 20 Discount rate 11% 11% 11% What is the present value of plan A?

Problem 06.027 AW of a Permanent Investment How much must you deposit each year into your retirement account starting now and continuing through year 12 If you want to be able to withdraw $75,000 per year forever, beginning 34 years from now? Assume the account earns Interest at 9% per year. The amount to be deposited is determined to be $ 5242.86

QUESTION 5 5.1 REQUIRED Use the information provided below to calculate the following. Where applicable, use the present value tables provided in APPENDICES 1 and 2 that appear after QUESTION 5. 5.1.1 Payback Period (expressed in years, months and days) 5.1.2 Accounting Rate of Return, on average investment (expressed to two decimal places) 5.1.3 Internal Rate of Return (expressed to two decimal places) INFORMATION Redd Ltd intends purchasing a machine. The following details relate to this machine: Purchase price R1 200 000 Expected useful life 4 years Minimum required rate of return 12% Scrap value RO Depreciation Straight-line method Net profit per year: 1st year R40 000 2nd year R100 000 3rd year R130 000 4th year R150 000 5.2 REQUIRED Use the information provided below to answer the following questions: 5.2.1 Calculate the Net Present Value. 5.2.2 Should the project be considered for acceptance? Why? INFORMATION Schroder Limited is looking at the possibility of investing in a new…

Ch 5A Questions Problem 1: Calculating Future Values. For each of the following, compute the future value: Present Value ($) Years Interest Rate Future Value($) 20% 6% 10% 4% 3680 5 9740 10 86399 15 565000 20 Problem 2: Calculating Present Values. For each of the following, compute the present valu Present Value ($) Years Interest Rate Future Value($) 4% 8% 7 999 1999 17 16% 11999 23 32% 111999 Problem 3: Calculating Interest Rates For each of the following, solve for the unknown intere rate: Future Value($) Present Value ($) Years Interest Rate(%) 300 4 400 350 10 900 36000 16 90000 67000 29 2000000

nt question   Q1. Find the present value of 30 annual payments of $2,000 per annum where the first payment is made 14 years from now. So there are 30 annual payments from t=14 to t=43 inclusive. The discount rate is 5% pa. The present value of these payments is: Question 8Select one: a. $4,908.18 b. $16,304.68 c. $21,212.85 d. $30,282.15 e. $30,744.9

QUESTION 42 Compute the missing variable for each of the following alternatives of investments to accumulate $1,000,000. for 30 years @ 6% annual interest rate: Following are appropriate factors from tables:    Table %   /  n Present Value of annuity due $1 Present Value of ordinary annuity of $1 Present value of $1 Future Value of ordinary annuity of $1 6%/30 12.15812 13.76483 .17411 79.05819   $????????? invested annually at the end of the year. Required Computations:      $12,648.91     $72,648.92     $33,3333.33     $11,927.43