FINANCIAL ACCT.FUND.(LOOSELEAF)
7th Edition
ISBN: 9781260482867
Author: Wild
Publisher: MCG
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Chapter B, Problem 1E
To determine
Present Value:
Present value is that value of money which measures the worth of a future amount in today’s value adjusted for interest and inflation. It is used in finance for the valuation of future value, stock and
To identify: The present value of the investment.
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Mike Derr Company expects to earn 6% per year on an investment that will pay $616,000 seven years from now. (PV of $1. FV of $1.
PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
Compute the present value of this investment.
Future Value
Table Factor
Present Value
An investment of P100,000 is expected to yield a regular annual net income of P25,000 per year for 10 years. Determine the
conventional benefit cost ratio using present worth with an interest rate of 10%?
ANSWER: Blank 1
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Mike Derr Company expects to earn 8% per year on an investment that will pay $616,000 ten years from now. (PV of $1, FV of $1, PVA
of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.)
Compute the present value of this investment.
Future Value
$
616,000
Table Factor
Present Value
Chapter B Solutions
FINANCIAL ACCT.FUND.(LOOSELEAF)
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