a. Hood Company invested $3,500 in an account that earns 12.00% per year. How much will the investment grow to in 5 years? 1 2 3 5 0 $3,500 Investment in time period 0: ? Put answer in box to the right... ALT-PV-LUMP-SUM b. Shasta Inc. is looking at an investment that will pay Shasta Inc. $10,000 in 5 years. How much should the company pay for this investment today, in order to earn a rate of return of 9.00%? 0 1 2 3 4 5 Investment in time period 0: $10,000 Put answer in box to the right.. ALT-PV-ANNUITY G. Shasta Inc. is looking at an investment that will pay Shasta Inc. $8,000 each year for 5 years. How much should the company pay for this annuity today, in order to earn a rate of return of 15.00% ? 0 5 1 $8,000 2 3 4 $8,000 $8,000 $8,000 $8,000 Investment in time period 0: Put answer in box to the right... ALT-PV-CASH STREAM d. Baker Brothers is looking at an investment that will pay Baker Brothers $15,000 in year 1, $10,000 in year 2, and $5,000 in year 3. How much should the company pay for this cash stream today, in order to earn a rate of return of 10.00%? 2 $10,000 1 ? $15,000 Put answer in box to the right... 3 $5,000 Investment in time period 0: PV OF $1.00 1 7% 0.9346 0.8734 2 1% 2% 3% 4% 5% 6% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9803 0.9612 0.9426 0.9246 0.9070 0.8900 0.9706 0.9423 0.9151 0.8890 0.8638 0.8396 0.8163 0.9610 0.9238 0.8885 0.8548 0.8227 0.7921 0.7629 0.9515 0.9057 0.8626 0.8219 0.7835 0.7473 0.7130 3 4 5 PV OF AN ANNUITY OF $1.00 2% 3% 4% 5% 6% 7% 1 2 1% 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 1.9704 1.9416 1.9135 1.8861 1.8594 1.8334 1.8080 2.9410 2.8839 2.8286 2.7751 2.7232 2.6730 2.6243 3.9020 3.8077 3.7171 3.6299 3.5460 3.4651 3.3872 4.8534 4.7135 4.5797 4.4518 4.3295 4.2124 4.1002 3 4 5 Answer Answer Answer Answer 8% 0.9259 0.8573 0.7938 0.7350 0.6806 8% 0.9259 1.7833 2.5771 3.3121 3.9927 11% 12% 15% 0.8696 9% 10% 13% 14% 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8417 0.8264 0.8116 0.7972 0.7831 0.7695 0.7722 0.7513 0.7312 0.7118 0.6931 0.6750 0.7084 0.6830 0.6587 0.6355 0.6133 0.5921 0.6499 0.6209 0.5935 0.5674 0.5428 0.5194 0.7561 0.6575 0.5718 0.4972 9% 10% 11% 12% 13% 14% 15% 0.9174 0.9091 0.9009 0.8929 0.8850 0.8772 0.8696 1.7591 1.7355 1.7125 1.6901 1.6681 1.6467 1.6257 2.5313 2.4869 2.4437 2.4018 2.3612 2.3216 2.2832 3.2397 3.1699 3.1024 3.0373 2.9745 2.9137 2.8550 3.8897 3.7908 3.6959 3.6048 3.5172 3.4331 3.3522