FV-PV EXERCISES ALT-FUTURE-VALUE-LUMP-SUM Hood Company invested $2,800 in an account that earns 4.00% per year. How much will the investment grow to in 5 years? Answer 0 1 2 3 4 Investme $2,800 5 ? Put answer in box to the right... ALT-PV-LUMP-SUM Shasta Inc. is looking at an investment that will pay Shasta Inc. $9,572 in 5 years. How much should the company pay for this investment today, in order to earn a rate of return of 5.00%? 0 1 2 3 4 5 Investme ? $9,572 Put answer in box to the right... Answer ALT-PV-ANNUITY Shasta Inc. is looking at an investment that will pay Shasta Inc. $5,000 each year for 5 years. How much should the company pay for this annuity today, in order to earn a rate of return of 5.00%? 0 1 2 3 5 Investment in time period o: ? $5,000 $5,000 $5,000 $5,000 $5,000 Put answer in box to the right... Answer 4 Answer ALT-PV-CASH STREAM Baker Brothers is looking at an investment that will pay Baker Brothers $4,000 in year 1, $5,000 in year 2, and $7,500 in year 3. How much should the company pay for this cash stream today, in order to earn a rate of return of 6.00%? 0 1 2 3 Investment in time period :? $4,000 $5,000 $7,500 Put answer in box to the right... PV OF $1.00 7% 9% 12% 5% 0.9524 6% 0.9434 14% 0.8772 15% 0.8696 1 0.9346 0.8929 2 3% 0.9709 0.9426 0.9151 0.8885 0.9070 1% 0.9901 0.9803 0.9706 0.9610 0.9515 0.8900 2% 0.9804 0.9612 0.9423 0.9238 0.9057 0.7972 11% 0.9009 0.8116 0.7312 0.7695 4% 0.9615 0.9246 0.8890 0.8548 0.8219 13% 0.8850 0.7831 0.6931 8% 0.9259 0.8573 0.7938 0.7350 0.6806 0.9174 0.8417 0.7722 0.7084 0.8734 0.8163 10% 0.9091 0.8264 0.7513 0.6830 0.6209 0.7561 0.6575 3 0.8638 0.7118 4 0.8227 0.8396 0.7921 0.7473 0.7629 0.6587 0.5935 0.6355 0.5674 0.6133 0.5428 0.6750 0.5921 0.5194 0.5718 0.4972 5 0.8626 0.7835 0.7130 0.6499 1% 4% 6% 10% 12% 14% PV OF AN ANNUITY OF $1.00 1 2 2% 0.9804 1.9416 5% 0.9524 8% 0.9259 0.9901 7% 0.9346 1.8080 13% 0.8850 0.9615 0.9434 9% 0.9174 1.7591 0.9091 0.8929 1.6901 15% 0.8696 1.6257 1.8861 1.8334 1.7833 1.7355 1.6681 3% 0.9709 1.9135 2.8286 3.7171 4.5797 3 11% 0.9009 1.7125 2.4437 3.1024 3.6959 2.7751 2.6243 2.5771 1.9704 2.9410 3.9020 4.8534 2.5313 2.4869 1.8594 2.7232 3.5460 4.3295 2.8839 3.8077 4.7135 2.6730 3.4651 2.4018 3.0373 2.3612 2.9745 0.8772 1.6467 2.3216 2.9137 3.4331 4 3.6299 4.4518 3.3872 4.1002 3.3121 3.9927 3.2397 3.8897 3.1699 3.7908 2.2832 2.8550 3.3522 5 4.2124 3.6048 3.5172