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Flaherty is considering an investment that, if paid for immediately, is expected to return $158,000 five years from now. If Flaherty demands a 15% return,
Flaherty is considering an investment that, if paid for immediately, is expected to return $158,000 five years from now. If Flaherty demands a 15% return, how much is she willing to pay for this investment? (PV of \$1, FV of \$1, PVA of \$1, and FVA of \$1) (Use appropriate factor(s) from the tables provided. Round your "PV of a single amount" to 4 decimal places and final answer to the nearest whole dollar.) Table B.1* Present Value of 1 p=1/(1+i)n \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline \multirow[b]{2}{*}{ Periods } & \multicolumn{13}{|c|}{ Rate } \\ \hline & 1% & 2% & 3% & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 12% & 15% & Periods \\ \hline 1 & 0.9901 & 0.9804 & 0.9709 & 0.9615 & 0.9524 & 0.9434 & 0.9346 & 0.9259 & 0.9174 & 0.9091 & 0.8929 & 0.8696 & 1 \\ \hline 2 & 0.9803 & 09612 & 0.9426 & 0.9246 & 0.9070 & 0.8900 & 0.8734 & 0.8573 & 0.8417 & 0.8264 & 0.7972 & 0.7561 & 2 \\ \hline 3 & 0.9706 & 0.9423 & 0.9151 & 0.8890 & 0.8638 & 0.8396 & 0.8163 & 0.7938 & 0.7722 & 0.7513 & 0.7118 & 0.6575 & 3 \\ \hline 4 & 0.9610 & 0.9238 & 0.8885 & 0.8548 & 0.8227 & 0.7921 & 0.7629 & 0.7350 & 0.7084 & 0.6830 & 0.6355 & 0.5718 & 4 \\ \hline 5 & 0.9515 & 0.9057 & 0.8626 & 0.8219 & 0.7835 & 0.7473 & 0.7130 & 0.6806 & 0.6499 & 0.6209 & 0.5674 & 0.4972 & 5 \\ \hline 6 & 0.9420 & 0.8880 & 0.8375 & 0.7903 & 0.7462 & 0.7050 & 0.6663 & 0.6302 & 0.5963 & 0.5645 & 0.5066 & 0.4323 & 6 \\ \hline 7 & 0.9327 & 0.8706 & 0.8131 & 0.7599 & 0.7107 & 0.6651 & 0.6227 & 0.5835 & 0.5470 & 0.5132 & 0.4523 & 0.3759 & 7 \\ \hline 8 & 0.9235 & 0.8535 & 0.7894 & 0.7307 & 0.6768 & 0.6274 & 0.5820 & 0.5403 & 0.5019 & 0.4665 & 0.4039 & 0.3269 & 8 \\ \hline 9 & 0.9143 & 0.8368 & 0.7664 & 0.7026 & 0.6446 & 0.5919 & 0.5439 & 0.5002 & 0.4604 & 0.4241 & 0.3606 & 0.2843 & 9 \\ \hline 10 & 0.9053 & 0.8203 & 0.7441 & 0.6756 & 0.6139 & 0.5584 & 0.5083 & 0.4632 & 0.4224 & 0.3855 & 0.3220 & 0.2472 & 10 \\ \hline 11 & 0.8963 & 0.8043 & 0.7224 & 0.6496 & 0.5847 & 0.5268 & 0.4751 & 0.4289 & 0.3875 & 0.3505 & 0.2875 & 0.2149 & 11 \\ \hline 12 & 0.8874 & 0.7885 & 0.7014 & 0.6246 & 0.5568 & 0.4970 & 0.4440 & 0.3971 & 0.3555 & 0.3186 & 0.2567 & 0.1869 & 12 \\ \hline 13 & 0.8787 & 0.7730 & 0.6810 & 0.6006 & 0.5303 & 0.4688 & 0.4150 & 0.3677 & 0.3262 & 0.2897 & 0.2292 & 0.1625 & 13 \\ \hline 14 & 0.8700 & 0.7579 & 0.6611 & 0.5775 & 0.5051 & 0.4423 & 0.3878 & 0.3405 & 0.2992 & 0.2633 & 0.2046 & 0.1413 & 14 \\ \hline 15 & 0.8613 & 0.7430 & 0.6419 & 0.5553 & 0.4810 & 0.4173 & 0.3624 & 0.3152 & 0.2745 & 0.2394 & 0.1827 & 0.1229 & 15 \\ \hline 16 & 0.8528 & 0.7284 & 0.6232 & 0.5339 & 0.4581 & 0.3936 & 0.3387 & 0.2919 & 0.2519 & 0.2176 & 0.1631 & 0.1069 & 16 \\ \hline 17 & 0.8444 & 0.7142 & 0.6050 & 0.5134 & 0.4363 & 0.3714 & 0.3166 & 0.2703 & 0.2311 & 0.1978 & 0.1456 & 0.0929 & 17 \\ \hline 18 & 0.8360 & 0.7002 & 0.5874 & 0.4936 & 0.4155 & 0.3503 & 0.2959 & 0.2502 & 0.2120 & 0.1799 & 0.1300 & 0.0808 & 18 \\ \hline 19 & 0.8277 & 0.6864 & 0.5703 & 0.4746 & 0.3957 & 0.3305 & 0.2765 & 0.2317 & 0.1945 & 0.1635 & 0.1161 & 0.0703 & 19 \\ \hline 20 & 0.8195 & 0.6730 & 0.5537 & 0.4564 & 0.3769 & 0.3118 & 0.2584 & 0.2145 & 0.1784 & 0.1486 & 0.1037 & 0.0611 & 20 \\ \hline 25 & 0.7798 & 0.6095 & 0.4776 & 0.3751 & 0.2953 & 0.2330 & 0.1842 & 0.1460 & 0.1160 & 0.0923 & 0.0588 & 0.0304 & 25 \\ \hline 30 & 0.7419 & 0.5521 & 0.4120 & 0.3083 & 0.2314 & 0.1741 & 0.1314 & 0.0994 & 0.0754 & 0.0573 & 0.0334 & 0.0151 & 30 \\ \hline 35 & 0.7059 & 0.5000 & 0.3554 & 0.2534 & 0.1813 & 0.1301 & 0.0937 & 0.0676 & 0.0490 & 0.0356 & 0.0189 & 0.0075 & 35 \\ \hline 40 & 0.6717 & 0.4529 & 0.3066 & 0.2083 & 0.1420 & 0.0972 & 0.0668 & 0.0460 & 0.0318 & 0.0221 & 0.0107 & 0.0037 & 40 \\ \hline \end{tabular} rate of 5% ), the factor is 0.5568 . You would need to invest $2,784 today ($5,0000.5568). Table B. 2 Future Value of 1 f=(1+i)n
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