24.5hw
PV of $1 Table
FV of $1 Table
PVA of $1 Table
FVA of $1 Table
Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5 ? eturn from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Compute each project's net present value. Compute each project's profitability index. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Compute each project's net present value. (Round your final answers to the nearest dollar.) Compute each project's profitability index. \begin{tabular}{|l|l|l|} \hline Required A & Required B Required C \\ \hline \end{tabular} If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index? Table B.1* Present Value of 1 p=1/(1+i)n years from today? Using the factors of n=12 and i=5% (12 semiannual periods and a semiannual rate of 5\%), the factor is 0.5568 . You would need to invest $2,784 today ( $5,000 0.5568 ). Table B. 2 Future Value of 1 f=(1+i)n the factors of n=20 and i=2%(20 quarterly periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is $4,457.70 ( $3,0001.4859). Table B. 3 Present Value of an Annuity of 1 p=[11/(1+i)n]/i annual interest rate of 9% ? For ( n=10,i=9% ), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ( $2,0006.4177 ). Table B. 4 Future Value of an Annuity of 1 f=[(1+i)n1]/i annual interest rate of 8% ? For (n=6,i=8%), the FV factor is 7.3359.$4,000 per year for 6 years accumulates to $29,343.60 ( $4,0007.3359). Following is information on two alternative investment projects being considered by Tiger Company. The company requires a 5 ? eturn from its investments. (PV of $1, FV of $1, PVA of $1, and FVA of $1 ) (Use appropriate factor(s) from the tables provided.) Compute each project's net present value. Compute each project's profitability index. If the company can choose only one project, which should it choose on the basis of profitability index? Complete this question by entering your answers in the tabs below. Compute each project's net present value. (Round your final answers to the nearest dollar.) Compute each project's profitability index. \begin{tabular}{|l|l|l|} \hline Required A & Required B Required C \\ \hline \end{tabular} If the company can choose only one project, which should it choose on the basis of profitability index? If the company can choose only one project, which should it choose on the basis of profitability index? Table B.1* Present Value of 1 p=1/(1+i)n years from today? Using the factors of n=12 and i=5% (12 semiannual periods and a semiannual rate of 5\%), the factor is 0.5568 . You would need to invest $2,784 today ( $5,000 0.5568 ). Table B. 2 Future Value of 1 f=(1+i)n the factors of n=20 and i=2%(20 quarterly periods and a quarterly interest rate of 2%), the factor is 1.4859. The accumulated value is $4,457.70 ( $3,0001.4859). Table B. 3 Present Value of an Annuity of 1 p=[11/(1+i)n]/i annual interest rate of 9% ? For ( n=10,i=9% ), the PV factor is 6.4177. $2,000 per year for 10 years is the equivalent of $12,835 today ( $2,0006.4177 ). Table B. 4 Future Value of an Annuity of 1 f=[(1+i)n1]/i annual interest rate of 8% ? For (n=6,i=8%), the FV factor is 7.3359.$4,000 per year for 6 years accumulates to $29,343.60 ( $4,0007.3359)
