Question

TB MC Qu. 6-20 Present Value of $1 Discount Rate...

Present Value of $1 Discount
Rate |
Present Value of an Annuity of $1 Discount
Rate |
|||||

Periods | 8% | 10% | 8% | 10% | ||

5 | 0.6806 | 0.6209 | 3.9927 | 3.7908 | ||

7 | 0.5835 | 0.5132 | 5.2064 | 4.8684 | ||

9 | 0.5002 | 0.4241 | 6.2469 | 5.7590 |

The present value of $6,000 to be received in 7 years at 10% is:
_____________

Answer #1

The present value of $6,000 to be received in 7 years at
10% is |
$ 3,079.20 |
|||||||||||||

Working: | ||||||||||||||

The present value of $6,000 to be received in 7 years at 10% | = | Amount to be received in 7 years * Present value of 1 discount rate at 10% | ||||||||||||

= | $ 6,000 | * | 0.5132 | |||||||||||

= | $ 3,079.20 | |||||||||||||

TB MC Qu. 24-110 Alfarsi Industries uses the net present
value... Alfarsi Industries uses the net present value method to
make investment decisions and requires a 15% annual return on all
investments. The company is considering two different investments.
Each require an initial investment of $15,800 and will produce cash
flows as follows: End of Year Investment A B 1 $ 8,800 $ 0 2 8,800
0 3 8,800 26,400 The present value factors of $1 each year at 15%...

Marwick Corporation issues 10%, 5 year bonds with a par value of
$1,020,000 and semiannual interest payments. On the issue date, the
annual market rate for these bonds is 8%. What is the bond's issue
(selling) price, assuming the following Present Value factors: 1n=
i= Present Value of an Annuity (series of payments) Present value
of 1 (single sum) 5 10 % 3.7908 0.6209 10 5 % 7.7217 0.6139 5 8 %
3.9927 0.6806 10 4 % 8.1109 0.6756 Multiple...

TB Problem Qu. 13-171 Devon Corporation uses a discount...
Devon Corporation uses a discount rate of 8% in its capital
budgeting. Partial analysis of an investment in automated equipment
with a useful life of 8 years has thus far yielded a net present
value of −$498,941. This analysis did not include any estimates of
the intangible benefits of automating this process nor did it
include any estimate of the salvage value of the equipment. (Ignore
income taxes.)
Click here to...

Find the following values:
a. The future value of a lump sum of $6,000 invested today at 9
percent, annual compounding for 7 years.
b. The future value of a lump sum of $6,000 invested today at 9
percent, quarterly compounding for 7 years.
c. The present value of $6,000 to be received in 7 years when
the opportunity cost (discount rate) is 9%, annual compounding.
d. The present value of $6,000 to be received in 7 years when
the...

Notes issued at a discount , face value of notes 4,000,000
nominal rate 6%, effective rate 8%, The note is issued on January
1, 2017 and mature in four years on January 1,2021. The interest is
payable annually every December 31,
Since the interest is payable annually there are 4 interest
periods . The relevant present value factors are:
PV of 1 at 8% for 4 periods .7350
PV of ordinary annuity of 1 at 8% for 4 periods 3.3121...

What is the present value of $1,500 per year, at a discount rate
of 6 percent, if the first payment is received 7 years from now and
the last payment is received 32 years from now?

A.Calculate the present value of an annuity of $5,000 received
annually that begins today and continues for 10 years, assuming a
discount rate of 9%.
B. Joan invested $5,000 in an interest-bearing account earning
an 8% annual rate of interest compounded monthly. How much will the
account be worth at the end of 5 years, assuming all interest is
reinvested at the 8% rate?
C. Calculate the present value of an ordinary annuity of $5,000
received annually for 10 years,...

1. A company borrowed cash from the bank by signing a 6-year, 8%
installment note. The present value for an annuity (series of
payments) at 8% for 6 years is 4.6229. The present value of 1
(single sum) at 8% for 6 years is .6302. Each annual payment equals
$75,100. The present value of the note is:
A.48,735.64 B.16,245.21 C.119,168..52 D. 450,600 E.
347,179.79
2. Barber and Atkins are partners in an accounting firm and
share net income and loss...

Calculate the present value of the given stream of cash flows
using the given discount rate. The present value you find is
between $24,000 and $24,100.
time
cash flows
discount rate
0
5%
1
$1,000
2
$1,500
3
$2,000
4
$2,500
5
$3,000
6
$3,500
7
$4,000
8
$4,500
9
$5,000
10
$5,500

5. What is the present value of $100 per month at a discount
rate of 6%, if the
first payment is received 5 years from now and the last payment is
received 18 years from
now?
Could you explain in detail with formula plz!

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