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BASIC (Questions 1-28) LO1 1. Present Value and Multiple Cash Flows. Eulis Co. has identified an investment project with the following cash flows. If the
BASIC (Questions 1-28) LO1 1. Present Value and Multiple Cash Flows. Eulis Co. has identified an investment project with the following cash flows. If the discount rate is 10 percent, what is the present value of these cash flows? What is the present value at 18 percent? At 24 percent? CHAPTER 5 Discounted Cash Flow Valuation 155 Year Cash Flow 1 $ 680 490 AWN- 975 1,160 LO 1 9. Calculating Annuity Values. If you deposit $5,000 at the end of each year for the next 20 years into an account paying 9.6 percent interest, how much money will you have in the account in 20 years? How much will you have if you make deposits for 40 years? LO 2 20. Calculating Loan Payments. You want to buy a new sports coupe for $73,400, and the finance office at the dealership has quoted you a loan with an APR of 5.1 percent for 60 months to buy the car. What will your monthly payments be? What is the effective annual rate on this loan? LO 2 21. Calculating Number of Periods. One of your customers is delinquent on his accounts payable balance. You've mutually agreed to a repayment schedule of $400 per month. You will charge 1.4 percent per month interest on the overdue balance. If the current balance is $14,480, how long will it take for the account to be paid off
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