Two alternative courses of action have the following schedules of disbursements. If th MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2 3 4 5 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500

Two alternative courses of action have the following schedules of disbursements. If th MARR is 6% which alternative should be selected? Use present worth analysis. Show your calculations in your working document. Also note that in periods 4 and 5, the values for option B should be - 400 and - 500 respectively. Year 0 1 2 3 4 5 A B -$1,300 0 0 0 0 0 $1,300 - $100 -200 -300 400 500 $1,500

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Determine the future value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Invested Amount i- n Future Value 1. $ 11,500 7% 15 23 $ 15,000 6% 14 $ 28,000 12% 14 4. S 48,000 8% 6
Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. Future Amount $ 24,000 $ 18,000 $ 29,000 $ 44,000 i 5% 9% 11% 10% n= 10 13 25 9 Present Value
Determine the future value of the following single amounts Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (EV of $1. PV of $1. EVA of $1.PVA of $1. EVAD of $1 and PVAD of $1) Invested Amount 15.000 20,000 30.000 50,000 1 S 3 234 $ 4 S 1 = ON 0% 12% 4% n = 12 10 20 12 Future Value
Suppose you are offered $7,100 today but must make the following payments: 1 2 Cash Flows ($) O $7,100 1-3,800 2-2,500 3 -1,600 4 -1,400 Year 4 6. 7 9. 10 11 What is the IRR of this offer? (Do not round intermediate calculations. Enter your ans 12 a. 13 14 15 16 17 b. If the appropriate discount rate is 10 percent, should you accept this offer? 18 19 multiple choice 1 20 21 Reject Ассept 22 23 24 25 C. If the appropriate discount rate is 19 percent, should you accept this offer? 26 27 multiple choice 2 28 29 Аcсept Reject 30 31 32 33 What is the NPV of the offer if the appropriate discount rate is 10 percent? (A negative ar What is the NPV of the offer if the appropriate discount rate is 19 percent? (A negative ar 34 d-1. 35 d-2. 36
Take me to the text Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Future Value (Single Payment) Discount Rate Number of Years Present Value Factor Present Value A A $57,000.00 9% 0.5019 B $19,000.00 % 7 0.5132 $9,750.80 $ $28,100.00 % 6 0.5346 D $16,000.00 14% 0.3506 $5,609.60
An annuity pays $200 at the end of each period for 10 periods. Set up the CFs in an Excel spreadsheet. The current value of this stream of CFs is $1,544. What is the implied discount rate? Solve the problem using the following approaches: a. Use trial and error or Goal Seek in Excel (tab Data/What-if-Analysis). b. Use the excel built-in function RATE.
Take me to the text Fill in the blanks for each of the following independent scenarios (A-D). Do not enter dollar signs or commas in the input boxes. Round all answers to the nearest whole number. Scenario Annual Net Cash Flow Discount Rate Number of Payments Present Value of Annuity Factor Present Value of Annuity $ A $20,000.00 $ 10% 4.3553 B % 2 1.6901 $82,814.90 $ C $21,000.00 6% 7.3601 D $8,000.00 9% 4.4859 $35,887.20
Determine the present value of the following single amounts (EV of $1, PV of $1. EVA of $1. PVA of S1. EVAD of S1 and PVAD of S1 (Use appropriate factor(s) from the tebles provided. Round your final answers to nearest whole dollar amount.) Future Amount Present Value 1. 34,000 5% 15 2. 28,000 6% 17 3. 39,000 10% 18 14 54,000 9% 11 54
Answer the following questions correctly and show your Complete Solution. a. 3 1/5% is equivalent to b. Find the actual time and approximate time from October 5, 2020 to June 30, 2021 c. Which of the following are NOT true?I. Principal is the money given or paid invested in the origin dateII. Origin date is a date on which money is paid by the borrower.III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.
The parameters of this question are on the sheet above: 1) Determine the best option using the equivalent annuity method. Do your calculations by hand in your working document. 2) Determine the best option using the net present value method. Do your calculations by hand in your working document. The MARR = 12%.
Damien offers you a sequence of end-of-year cash flows for an investment as follows: Year 1 2 3 4 4 What is the value of the cash flows if the opportunity cost is 6 percent? (Round to the nearest dollar). Please click on the following link to access a blank worksheet Click to open:: O $8.392 $8.598 Cash Flow $4,000 $3,000 $2,000 $1,000 $8.734 $8.915
Percentages need to be entered in decimal format, for instance 3% would be entered as .03 in cell B12.) Set up an amortization schedule for a $60,000 loan to be repaid in equal installments at the end of each of the next 20 years at an interest rate of 20%. What is the annual payment? After you input the data for each scenario, click on the Graph tab (second tab on the worksheet) and look at the Principal and Interest portions of the payments throughout the years. What do you notice about the amount of Principal and Interest over the years (which amount is higher in the early years, and which amount is higher in the later years) of the loan? What do you notice about the difference in Principal and Interest in the 10% scenarios compared to 20% scenarios?

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