Question
1. You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that
1. You have been depositing money into an account yearly based on the following investment amounts, rates and times, what is the value of that investment account at the end of that period?
Amounts of Investment | Rate | Times | Value at the End of the Period |
$8,000 | 20% | 16 years | $ . |
$12,000 | 15% | 11 years | $ |
$17,000 | 12% | 7 years | $ |
$36,000 | 10% | 3 years | $ |
2.
Julio Company is considering the purchase of a new bubble packaging machine. If the machine will provide $21,000 annual savings for 10 years and can be sold for $52,000 at the end of the period, what is the present value of the machine investment at a 12% interest rate with savings realized at year end? Round your present value factor to three decimal places and final answer to the nearest dollar.
$...........?
3.
How much must be invested now to receive $29,000 for 8 years if the first $29,000 is received one year from now and the rate is 10%? Round your present value factor to three decimal places and final answer to the nearest dollar.
$............?
4.
Project A costs $4,500 and will generate annual after-tax net cash inflows of $1,900 for five years. What is the NPV using 8% as the discount rate? Round your present value factor to three decimal places and final answer to the nearest dollar.
$..........?
5.
Consolidated Aluminum is considering the purchase of a new machine that will cost $316,004 and provide the following cash flows over the next five years: $80,000, $87,000, $75,000, $80,000, and $72,000. Calculate the IRR for this piece of equipment using the IRR spreadsheet function.
............? %
6.
Towson Industries is considering an investment of $171,300 that is expected to generate returns of $60,000 per year for each of the next four years. What is the investments internal rate of return?
..................?%
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