978-1111972202

Assume that you are nearing graduation and have applied for a job with a local bank. The bank's evaluation process requires you to take an examination that covers several financial analysis techniques. The first section of the test addresses discounted cash flow analysis. See how you would do by answering the following questions. a. Draw time lines for (1) a $100 lump sum cash flow at the end of Year 2, (2) an ordinary annuity of $100 per year for 3 years, and (3) an uneven .ash flow stream of -$50, $100, $75, and $50 at the end of Years 0 through 3. b. What's the future value of an initial $100 after 3 years if it is invested in an account paying 10% annual interest? What's the present value of $100 to be received in 3 years if the appropriate interest rate is 10%? c. We sometimes need to find out how long it will take a sum of money (or something else, such "earnings, population, or prices) to grow to some specified amount. For example if a company's sales are growing at a rate of 20% per year, how long will takes sales to double? If you want an investment to double in 3 years, what interest rate must it earn? What is the difference between an ordinary annuity and an annuity due? What type of annuity is shown below? How would you change the time line to show the other type annuity