I DO NOT WANT THE ANSWERS TO THESE QUESTIONS What I want is a detailed explanation of how to enter them correctly into Excel and then I will enter them and then submit for corrections I am seeking highly detailed excel templates and directions on how to build them from scratch I will also need the formulas for the problems presented I really appreciate the time it will take you to complete the tutoring Homework 1 Deliverable Please submit your work on Blackboard, on or before September 22 at 1 10 p m You are free (and encouraged) to work on this assignment in groups Only one submission per group is required Question 1 You are head of a Family Endowment for the Arts You have decided to fund a music school in San Diego in perpetuity You will give the school $1 million immediately, and subsequent annual $1 million dollar payments growing at the rate of inflation, which you estimate to be 3 per year (i e , you will contribute $1,000,000 plus inflation next year (one year from today), the year after, the year after, etc ,) If the interest rate is 8 per year, what is the present value of your gift Question 2 Your friend has a business she wants you to value The business will not generate any money for the next three years, but in the fourth year it will start turning a profit and will make a payment (the first payment) of $150,000 to the owners at the end of the fourth year Your friend expects to be able to grow the business, and the payments made to the owners, by 4 per year forever, and the owners will receive their payments at year end If the appropriate discount rate is 14 , what is the value of the business today Question 3 Pauli found a book on Finance in a garbage can After reading it, he tells Silvio that if Silvio will give him $10,000 year for five years with the first payment at the end of this year, then he will give Silvio $10,000 year forever with the first payment occurring at the end of year 6 Silvio's next best alternative (i e , what he would do with his money if he didn't take Pauli's offer) is to loan the money to Christopher at 12 (i e , this is the opportunity cost, and should be used as the discount rate) What NPV does Silvio get if he takes Pauli's offer Should Silvio take Pauli's offer Why or why not Question 4 Congratulations You have won the Powerball The Lottery Commission informs you that you have won a million dollars, and that your million dollar prize will be paid to you in 20 equal installments of $50,000 to arrive every year, with the first payment coming today , and subsequent payments each year at the end of the following years What is the present value of your lottery winnings Did you really win a million dollars Your first calculation didn't make you feel great, but you still feel pretty rich But now someone reminds you that the lottery winnings are taxable, and that you're going to have to pay 35 in taxes on the date you receive the payments What is the present value of your after tax lottery winnings Given the payoff scheme of the lottery where you receive 20 equal annual payments with the first payment received today, what amount must you win to be a true present value after tax millionaire (use the same 35 tax rate as above) In other words, what is the amount that must be advertised as the lottery amount such you actually end up with one million dollars in present value Use a discount rate of 8 in all PV calculations Question 5 You are thinking of purchasing a home The house costs $400,000 You have $40,000 in cash for a down payment on the home, but you need to borrow the rest ($360,000) of the purchase price Since your down payment is less than 20 percent of the purchase price, you need to take out two mortgages The first mortgage on $320,000 has a fixed interest rate of 7 APR and a maturity of 30 years (360 months) Here, please note that APR stands for annual percentage yield Because mortgages are calculated (usually) in terms of monthly payments, the relevant interest rate is the monthly interest rate, which is 7 divided by 12, which is 0 58333 per month The second mortgage on $40,000 has a fixed interest rate of 8 APR (0 66667 per month) and a maturity of 15 years (180 months) For each mortgage, you will have fixed payments over the life of the respective loan What will be your monthly mortgage payment for your mortgages Please calculate the monthly payment for each mortgage

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I DO NOT WANT THE ANSWERS TO THESE QUESTIONS What I want is a detailed explanation of how to enter them correctly into Excel and

I DO NOT WANT THE ANSWERS TO THESE QUESTIONS

What I want is a detailed explanation of how to enter them correctly into Excel and then I will enter them and then submit for corrections. I am seeking highly detailed excel templates and directions on how to build them from scratch. I will also need the formulas for the problems presented. I really appreciate the time it will take you to complete the tutoring.

Homework 1

Deliverable: Please submit your work on Blackboard, on or before September 22 at 1:10 p.m.You are free (and encouraged) to work on this assignment in groups.Only one submission per group is required.

Question 1

You are head of a Family Endowment for the Arts. You have decided to fund a music school in San Diego in perpetuity. You will give the school $1 million immediately, and subsequent annual $1 million dollar payments growing at the rate of inflation, which you estimate to be 3% per year (i.e., you will contribute $1,000,000 plus inflation next year (one year from today), the year after, the year after, etc.,). If the interest rate is 8% per year, what is the present value of your gift?

Question 2

Your friend has a business she wants you to value.The business will not generate any money for the next three years, but in the fourth year it will start turning a profit and will make a payment (the first payment) of $150,000 to the owners at the end of the fourth year.Your friend expects to be able to grow the business, and the payments made to the owners, by 4% per year forever, and the owners will receive their payments at year end. If the appropriate discount rate is 14%, what is the value of the business today?

Question 3

Pauli found a book on Finance in a garbage can.After reading it, he tells Silvio that if Silvio will give him $10,000/year for five years with the first payment at the end of this year, then he will give Silvio $10,000/year forever with the first payment occurring at the end of year 6.Silvio's next-best alternative (i.e., what he would do with his money if he didn't take Pauli's offer) is to loan the money to Christopher at 12% (i.e., this is the opportunity cost, and should be used as the discount rate).

What NPV does Silvio get if he takes Pauli's offer?
Should Silvio take Pauli's offer?
Why or why not?

Question 4

Congratulations!You have won the Powerball!The Lottery Commission informs you that you have won a million dollars, and that your million dollar prize will be paid to you in 20 equal installments of $50,000 to arrive every year, with the first payment coming today, and subsequent payments each year at the end of the following years.

What is the present value of your lottery winnings?Did you really win a million dollars?

Your first calculation didn't make you feel great, but you still feel pretty rich.But now someone reminds you that the lottery winnings are taxable, and that you're going to have to pay 35% in taxes on the date you receive the payments.

What is the present value of your after-tax lottery winnings?
Given the payoff scheme of the lottery where you receive 20 equal annual payments with the first payment received today, what amount must you win to be a true present-value after-tax millionaire (use the same 35% tax rate as above)? In other words, what is the amount that must be advertised as the lottery amount such you actually end up with one million dollars in present value?

Use a discount rate of 8% in all PV calculations.

Question 5

You are thinking of purchasing a home. The house costs $400,000. You have $40,000 in cash for a down payment on the home, but you need to borrow the rest ($360,000) of the purchase price. Since your down payment is less than 20 percent of the purchase price, you need to take out two mortgages. The first mortgage on $320,000 has a fixed interest rate of 7% APR and a maturity of 30 years (360 months).Here, please note that APR stands for "annual percentage yield." Because mortgages are calculated (usually) in terms of monthly payments, the relevant interest rate is the monthly interest rate, which is 7% divided by 12, which is 0.58333% per month.The second mortgage on $40,000 has a fixed interest rate of 8% APR (0.66667% per month) and a maturity of 15 years (180 months). For each mortgage, you will have fixed payments over the life of the respective loan.What will be your monthly mortgage payment for your mortgages?Please calculate the monthly payment for each mortgage.