Question
Is there another way to describe both -$173,160 and $534,527.39? Are the comments that I have below another way to describe -$173,160 and $534,527.39? I
Is there another way to describe both -$173,160 and $534,527.39? Are the comments that I have below another way to describe -$173,160 and $534,527.39? I really need your help here. It is because I really would like to know if there is another way to describe -$173,160 and $534,527.39, which is what I get after using The Present Value of A Single Future Amount Formula? Are the comments that you see above that contain words in different colors use -$173,160 and $534,527.39 correctly? If not, can you help me use -$173,160 and $534,527.39 to describe both dollar amounts that I obtained after I used the The Present Value of A Single Future Amount Formula, please?
Question 12 Smith Company has the following annual cash flows: Year O: -173.160 Year 1:614.718 Year 2: -726,406 Year 3: 285,714 Which discount rate provides a positive net present value (NPV) given this information? 15% 21% 18% Solution : Option 21% is the correct option. Explaination: 0 1 1 - 173160.00 Cash Flows PV Factor15% PV Cash Flow @15% PV Factor 21% PV Cash Flow @21% PV Factor18% PV Cash Flow @18% - 173160 - 173160.00 1 - 173160.00 1 614718 0.870 534537.39 0.826 508031.40 0.847 520947.46 -726406 0.756 -549267.30 0.683 0.718 -521693.48 285714 0.658 187861.59 0.564 161278.10 173894.36 Net Present Value 2 -496145.07 3 0.609 -28.31 4.44 - 11.66 *Net Cash Flow = Cash Flow * PV Factor **Net Present Value = Sum of present value of Cash flow Above Table it is cleary calculated that @21% NPV is positive. My question is about Question 12 of 6-2 Quiz-Chapters 11, 12, and 13. V-$173.160 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 0. V$534,537.39 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 1. Is there another way to describe both -$173,160 and $534,527.39? Are the comments that I have below another way to describe -$173,160 and $534,527.39? I really need your help here. It is because I really would like to know if there is another way to describe -$173,160 and $534,527.39, which is what I get after using The Present Value of A Single Future Amount Formula? The Present Value of A Single Future Amount:Formula 1 PV = FV X (1 + i)" Investors are willing to pay -$173,160, and -$173,160 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$173,160. Or, the selling price of the bonds is -$173,160. Temple- Midland's bonds is currently being priced in the market at -$173,160. Investors are willing to pay $534,527.39.and - $534,527.39 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$534,527.39. Or, the selling price of the bonds is -$534,527.39. Temple- Midland's bonds is currently being priced in the market at -$534,527.39. *-$173,160-is-Future value (or Future cash flows, future income-stream) and par (face) value on Smith Company's stock/bond. ---$173,160-is the Cash-outflow. i=-Expected and/or required tate of retur (profit) for a particular investment (or on an- investment) i=-Discount rate n=#oftimes per year interest is compounded. [Method #2] Present value of Principal *Refer to-M-9-and-M-10-of-Learning Objective-M.3-Compute and use the present value of a single-sum. Of Time Value of Money-Module-of-Chapter 5-The-Income-Statement-And-The- Statement of Cash-Flows of Intermediate Accounting Reporting and Analysis, 2017 Update 2.e: James Wahlen-ISBN-10;-1337116610 Cengage-Learning 2016 The Present Value of A Single Future Amount:Formula 1 PV = FV X (1 + i)" PV = -$173,160 X (1 + 0.15) 1 (1 +0.15) 1 1 (1.15) 1 =-1.15401 You must divide-1-by-1, the two-integers (whole numbers), using a division box. I PV = $173.160-x-1 PV=--$173,1601 V-$173.160 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 0.1 Investors are willing to pay -$173,160, and -$173,160 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$173,160. Or, the selling price of the bonds is -$173,160. Temple- Midland's bonds is currently being priced in the market at -$173,160. Investors are willing to pay -$534,527.39, and -$534,527.39 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$534,527.39. Or, the selling price of the bonds is $534,527.39. Temple- Midland's bonds is currently being priced in the market at -$534,527.39. Question 12 Smith Company has the following annual cash flows: Year O: -173.160 Year 1:614.718 Year 2: -726,406 Year 3: 285,714 Which discount rate provides a positive net present value (NPV) given this information? 15% 21% 18% Solution : Option 21% is the correct option. Explaination: 0 1 1 - 173160.00 Cash Flows PV Factor15% PV Cash Flow @15% PV Factor 21% PV Cash Flow @21% PV Factor18% PV Cash Flow @18% - 173160 - 173160.00 1 - 173160.00 1 614718 0.870 534537.39 0.826 508031.40 0.847 520947.46 -726406 0.756 -549267.30 0.683 0.718 -521693.48 285714 0.658 187861.59 0.564 161278.10 173894.36 Net Present Value 2 -496145.07 3 0.609 -28.31 4.44 - 11.66 *Net Cash Flow = Cash Flow * PV Factor **Net Present Value = Sum of present value of Cash flow Above Table it is cleary calculated that @21% NPV is positive. My question is about Question 12 of 6-2 Quiz-Chapters 11, 12, and 13. V-$173.160 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 0. V$534,537.39 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 1. Is there another way to describe both -$173,160 and $534,527.39? Are the comments that I have below another way to describe -$173,160 and $534,527.39? I really need your help here. It is because I really would like to know if there is another way to describe -$173,160 and $534,527.39, which is what I get after using The Present Value of A Single Future Amount Formula? The Present Value of A Single Future Amount:Formula 1 PV = FV X (1 + i)" Investors are willing to pay -$173,160, and -$173,160 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$173,160. Or, the selling price of the bonds is -$173,160. Temple- Midland's bonds is currently being priced in the market at -$173,160. Investors are willing to pay $534,527.39.and - $534,527.39 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$534,527.39. Or, the selling price of the bonds is -$534,527.39. Temple- Midland's bonds is currently being priced in the market at -$534,527.39. *-$173,160-is-Future value (or Future cash flows, future income-stream) and par (face) value on Smith Company's stock/bond. ---$173,160-is the Cash-outflow. i=-Expected and/or required tate of retur (profit) for a particular investment (or on an- investment) i=-Discount rate n=#oftimes per year interest is compounded. [Method #2] Present value of Principal *Refer to-M-9-and-M-10-of-Learning Objective-M.3-Compute and use the present value of a single-sum. Of Time Value of Money-Module-of-Chapter 5-The-Income-Statement-And-The- Statement of Cash-Flows of Intermediate Accounting Reporting and Analysis, 2017 Update 2.e: James Wahlen-ISBN-10;-1337116610 Cengage-Learning 2016 The Present Value of A Single Future Amount:Formula 1 PV = FV X (1 + i)" PV = -$173,160 X (1 + 0.15) 1 (1 +0.15) 1 1 (1.15) 1 =-1.15401 You must divide-1-by-1, the two-integers (whole numbers), using a division box. I PV = $173.160-x-1 PV=--$173,1601 V-$173.160 is the Present value of Principal (The Present Value of A Single Future Amount) at the end of Year 0.1 Investors are willing to pay -$173,160, and -$173,160 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$173,160. Or, the selling price of the bonds is -$173,160. Temple- Midland's bonds is currently being priced in the market at -$173,160. Investors are willing to pay -$534,527.39, and -$534,527.39 is the present value, or present value of the future cash flows (or future income stream). Or, the current market price of Temple- Midland's bonds is -$534,527.39. Or, the selling price of the bonds is $534,527.39. Temple- Midland's bonds is currently being priced in the market at -$534,527.39Step by Step Solution
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