Question
1. Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a pre-owned car. He says, For only 6
1. Present value. A smooth-talking used-car salesman who smiles considerably is offering you a great deal on a "pre-owned" car. He says, "For only 6 annual payments of 2,300, this beautiful 1998 Honda Civic can be yours." If you can borrow money at 8%, what is the price of this car? Assume the payment is made at the end of each year. If you can borrow money at 8%, what is the price of this car?
$ _______(Round to the nearest cent.)
2.
Upstate University currently has a 6,500-car parking capacity for faculty, staff, and students. This year, the university issued 4,497 parking passes. The number of parking passes issued has been growing at a rate of 8% per year. How long will it be before the university will need to add parking spaces?
How long will it be before the university will need to add parking spaces?
__years(Round to two decimal places.)
3.
Find the operating cash flow for the year for Harper Brothers, Inc. if it had sales revenue of $313,500,000, cost of goods sold of $146,700,000, sales and administrative costs of $39,800,000, depreciation expense of $ $60,200,000, and a tax rate of 40%.
The operating cash flow is $
_______ (Round to the nearest dollar.)
4.
Different cash flow.Given the following cash inflow, what is the present value of this cash flow at 5%, 10%, and 25% discount rates?
Year 1: $3000
Year 2: $5000
Years 3 through 7: $0
Year 8: $25000
What is the present value of this cash flow at 5% discount rate?
$__ (Round to the nearest cent.)
What is the present value of this cash flow at 10% discount rate?
$___(Round to the nearest cent.)
What is the present value of this cash flow at 25% discount rate?
$____ (Round to the nearest cent.)
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