Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I need help with these 2 questions. This is due tomorrow , June 26 at 8 am. I would like to have it done today
I need help with these 2 questions. This is due tomorrow , June 26 at 8 am. I would like to have it done today though
1.) Time Value of Money: Basics Using Table 12A.1 and Table 12A.2 of this chapter, determine the answers to each of the following independent situations. (Round answers to the nearest whole number.) (a) The future value in two years of $3,000 deposited today in a savings account with interest compounded annually at 4 percent. $ Answer 0 (b) The present value of $8,000 to be received in four years, discounted at 8 percent. $ Answer 0 (c) The present value of an annuity of $3,000 per year for four years discounted at 16 percent. $ Answer 8394 (d) An initial investment of $37,260 is to be returned in eight equal annual payments. Determine the amount of each payment if the interest rate is 6 percent. $ Answer 0 (e) A proposed investment will provide cash flows of $50,000, $8,000, and $5,000 at the end of Years 1, 2, and 3, respectively. Using a discount rate of 16 percent, determine the present value of these cash flows. Year 1 $ Answer 0 Year 2 $ Answer 0 Year 3 $ Answer 0 (f) Find the present value of an investment that will pay $9,000 at the end of Years 10, 11, and 12. Use a discount rate of 10 percent. $ Answer 0 2.) NPV and IRR: Equal Annual Net Cash Inflows Apache Junction Company is evaluating a capital expenditure proposal that requires an initial investment of $44,190, has predicted cash inflows of $9,000 per year for 13 years, and has no salvage value. (a) Using a discount rate of 16 percent, determine the net present value of the investment proposal. (Round to the nearest whole number.) $Answer 0 Note: the answer is not 3,891 (b) Determine the proposal's internal rate of return. Answer 18 % (c) What discount rate would produce a net present value of zero? Answer 18 %Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started