Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

F G interest rate = H 0.08 Year 0 1 Positive Cash Flow Negative Cash Flow -10000 5310 -3000 5310 -3000 5310 -3000 5310 -3000

image text in transcribed
image text in transcribed
image text in transcribed
F G interest rate = H 0.08 Year 0 1 Positive Cash Flow Negative Cash Flow -10000 5310 -3000 5310 -3000 5310 -3000 5310 -3000 5310 -3000 2 3 Net Cash Flow -10000 2310 2310 2310 2310 2310 Present Worth -10000 2138.89 1980.45 4 1833.75 1697.92 1572.15 5 Present Worth is equal to: interest rate 0.08 Year 1 2 3 4 5 6 17 18 19 20 21 22 23 24 25 1 2 3 4 5 Positive Cash Flow Negative Cash Flow -10000 5310 -3000 5310 -3000 5310 -3000 5310 -3000 5310 -3000 Net Cash Flow -10000 2310 2310 2310 2310 2310 Present Worth -10000 2138.888889 1980.452675 1833.752477 1697.91896 1572.147185 Present Worth -776.8398143 1. When in cell C1 the interest rate is 8% or 0.08 the present worth of this alternative is: a. -$10,000 b. -$776.84 c.-$9,223.16 d. -$2,734.69 2. When in cell C1the interest rate is 10% or 0.10 the present worth of this alternative is: a. -$8,756.72 b. -$11,211.43 c. -$10,000.00 d. -$1,243.28 3. When in cell C1the interest rate is 4% or 0.04 the present worth of this alternative is: a $10,000 b. $10,283.71 c. $283.71 d. $9,716.29 4. Which is the best alternative? a. Interest of 8% b. Interest of 4% c. Interest of 10% d. Both interests 8% and 10%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting A Managerial Emphasis

Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav

14th Edition

978-0132960649, 132960648, 132109174, 978-0132109178

More Books

Students also viewed these Accounting questions