Finance CH 5

annuity payment years interest rate2400 7 5%1400 9 40/612580 17 6%32150 23 8% calcularte the cash flow

Present value of an ordinary annuity. Fill in the missing present values in the following table for an ordinary annuity:

plan A plan B plan C Down payment 1,789.91 2,309.65 3,764.51 Annual payments 5,097.70 7,450.16 9,845.78 Years 20 20 20 Discount rate 12% 12% 12% What is the present value of plan B?

QUESTION   Time Cash Flow Period 0 -50,000.00 Period 1 15,000.00 Period 2 20,000.00 Period 3 25,000.00 Period 4 18,000.00 Find the IRR using discount rates of 10% and 20%

Subject:

Present Value of an Annuity of $1 Discount Rate Present Value of $1 Discount Rate Periods 8% 10% 8% 10% 0.6806 0.6209 3.9927 3.7908 0.5835 0.5132 5.2064 4.8684 0.5002 0.4241 6.2469 5.7590 Psyche Company wants to acquire Trim Company. Trim's ROI has been above average for its industry; net income has averaged $140,000 a year more than the industry average. These "excess" earnings are expected to continue at this amount for 5 years. Assuming a discount rate of 8%, how much goodwill will arise from Psyche's purchase of Trim?

Financial Accounting Question need help please

Discount rate: 6% End of year: 1 2 4 Cash flows: (20,000) $ 5,000 $ 5,000 $ 5,000 $ 5,000 $ 5,000 What is the Net Present Value of the cash flows? At what discount rate is the Net Present Value "0"? Initial outlay: 5,000 Life of investment in years: 10 Amount to be received at end: 10,000 8 Rate of return: Amount of loan: 2$ 50,000 Annual payment: 2$ 10,000 Interest rate: 8% 9. How many years will it take to pay off the loan? 3. %24 %24 %24 %24

Crab Company is considering a project with an initial investment of $600,000 that is expected to produce cash inflows of $129,500 for ten years. Crab's required rate of return is 16%. (Click on the icon to view Present Value of $1 table.) E (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? 16. Is this an acceptable project for Crab? 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.) Net Cash Annuity PV Factor Present (i-16%, n=10) Value Years Inflow 1- 10 Present value of annuity Investment Net present value

Present value of an Annuity of $1 in Arrears Periods 4%   6%   8%   10%   12%   14%   1 0.962 0.943 0.926 0.909 0.893 0.877 2 1.886 1.833 1.783 1.736 1.690 1.647 3 2.775 2.673 2.577 2.487 2.402 2.322 4 3.630 3.465 3.312 3.170 3.037 2.914 5 4.452 4.212 3.993 3.791 3.605 3.433 6 5.242 4.917 4.623 4.355 4.111 3.889 7 6.002 5.582 5.206 4.868 4.564 4.288 8 6.733 6.210 5.747 5.335 4.968 4.639 9 7.435 6.802 6.247 5.759 5.328 4.946 10 8.111 7.360 6.710 6.145 5.650 5.216 Lucas Company is considering a project with an initial investment of $530,250 in new equipment that will yield annual net cash flows of $95,000, and will be depreciated at $75,750 per year over its seven year life. What is the internal rate of return? a.6% b.14% c.10% d.12% e.8%

In the given table, What is the present value of plan B?

Use this table to estimate the monthly payment for the loan described. (Round your answer to the nearest cent.) $68,200; 30 years; 61⁄2% tA

What semiannual sinking fund payment would be required to yield $45,000 nine years from now? The annual interest rate is 6% compounded semiannually. Click the icon to view the table. The sinking fund payment is S (Round to the nearest cent as needed.)

Meghan Pease purchased a small sailboat for $8,350. She made a down payment of $1,300 and financed the balance with monthly payments of $232.38 for 36 months. (a) What is the finance charge (in $) on the loan? (b) Use Table 13-1 to find what annual percentage rate was charged on Meghan's loan. (Round your answer to two decimal places.) %

Part a. Loan payments you borrow $100,000 over a period of 30 years at a fixed APR of 5.5% calculate the monthly payment Part b. Determine the total amount paid, then figure out what percentage is paid towards the principal and what percentage is paid for interest. Please solve part A and B they go together. I included an example problem

A design studio received a loan of $6,850 at 6.20% compounded semi-annually to purchase a camera. If they settled the loan in 2 years by making quarterly payments, construct the amortization schedule for the loan and answer the following questions: a. What was the payment size? $0.00 Round to the nearest cent b. What was the size of the interest portion on the first payment? a $0.00 0 SUBMIT QUESTION SAVE PROGRESS SUBMIT AS

The following cash-flow streams need to be analyzed:   END OF YEAR CASH-FLOW STREAM $1 $2 $3 $4 5 W 100 200 200 300 1,$300 X 600 – – – – Y – – – – 11,200 Z $200 – $500 – 0,300 a. Calculate the future (terminal) value of each stream at the end of year 5 with a compound annual interest rate of 10 percent. b. Compute the present value of each stream if the discount rate is 14 percent.

Prepare a duration table under the following assumptions a. $100,000 balloon loan b. Annual payments c. 5-year balloon d. 20-year amortization e. 7% stated rate f. 9% yield