Nona Carmella wants to open a new factory in New Jersey. The company can either purchase or lease the factory. There are three options available for Nona Carmella: (Click the icon to view the options.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Requirement Interest is compounded annually. Which option should Nona Carmella choose given a 10% interest rate? (Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) e First, calculate the present value of each option. (Ignore any depreciation expense for purposes of this problem. Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round any intermediary currency calculations and your final answer to the nearest cent, $X.XX.) Option 1 Option 2 Option 3 Present value $ 800,000.00 $ 540,721.91 $ 793,976.06 Nona Carmella should select Option 2 because this option results in the smallest present value. Requirement Calculate the present value of each of the following cash flows at 16% using interest tables, a financial calculator, or a spreadsheet: i (Click the icon to view the cash flows.) (If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round all intermediary currency calculations and your final answer to the nearest cent, $X.XX.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) A (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) e a. $4,000 is to be received at the end of each of the next ten semiannual interest periods, plus $17,000 to be received at the end of each of the next eight semiannual interest periods after that. Interest is compounded semiannually. The present value (PV) of this scenario is $ 72,091.02 b. There are no cash flows to be received at the end of the first four semiannual periods. However, $20,000 is to be received at the end of the next seven semiannual periods after that this is known as a deferred annuity with semiannual compounding). The present value (PV) of this scenario is $ 76,536.75 E (Click the icon to view the Present Value of $1 table.) Requirement Using the present value and future value tables, a financial calculator, or a spreadsheet, answer the following questions. (Click the icon to view the questions.) (If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.) IM (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) 5 a. $12,000 is to be deposited at the end of each year for the next five years. What is the FV of this investment if 14% interest is compounded annually? The future value (FV) of this investment is $ 79,321.20. b. $12,000 is to be deposited at the beginning of each semiannual period for the next five years. What is the FV of this investment if 14% interest is compounded semiannually? The future value (FV) of this investment is $ 177,403.19 c. $6,000 is to be received at the end of each year for the next eight years. What is the PV of this investment if 4% interest is compounded annually? The present value (PV) of this investment is $ 40,396.47 d. $6,000 is to be received at the beginning of each semiannual period for the next eight years. What is the PV of this investment if 4% interest is compounded semiannually? The present value (PV) of this investment is $ Nona Carmella wants to open a new factory in New Jersey. The company can either purchase or lease the factory. There are three options available for Nona Carmella: (Click the icon to view the options.) (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) Requirement Interest is compounded annually. Which option should Nona Carmella choose given a 10% interest rate? (Click the icon to view the Present Value of an Ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) e First, calculate the present value of each option. (Ignore any depreciation expense for purposes of this problem. Use the present value and future value tables, the formula method, a financial calculator, or a spreadsheet for your calculations. If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round any intermediary currency calculations and your final answer to the nearest cent, $X.XX.) Option 1 Option 2 Option 3 Present value $ 800,000.00 $ 540,721.91 $ 793,976.06 Nona Carmella should select Option 2 because this option results in the smallest present value. Requirement Calculate the present value of each of the following cash flows at 16% using interest tables, a financial calculator, or a spreadsheet: i (Click the icon to view the cash flows.) (If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round all intermediary currency calculations and your final answer to the nearest cent, $X.XX.) (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) A (Click the icon to view the Present Value of $1 table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) e a. $4,000 is to be received at the end of each of the next ten semiannual interest periods, plus $17,000 to be received at the end of each of the next eight semiannual interest periods after that. Interest is compounded semiannually. The present value (PV) of this scenario is $ 72,091.02 b. There are no cash flows to be received at the end of the first four semiannual periods. However, $20,000 is to be received at the end of the next seven semiannual periods after that this is known as a deferred annuity with semiannual compounding). The present value (PV) of this scenario is $ 76,536.75 E (Click the icon to view the Present Value of $1 table.) Requirement Using the present value and future value tables, a financial calculator, or a spreadsheet, answer the following questions. (Click the icon to view the questions.) (If using present and future value tables or the formula method, use factor amounts rounded to five decimal places, X.XXXXX. Round your final answer to the nearest cent, $X.XX.) IM (Click the icon to view the Future Value of $1 table.) (Click the icon to view the Future Value of an Ordinary Annuity table.) (Click the icon to view the Future Value of an Annuity Due table.) (Click the icon to view the Present Value of an ordinary Annuity table.) (Click the icon to view the Present Value of an Annuity Due table.) 5 a. $12,000 is to be deposited at the end of each year for the next five years. What is the FV of this investment if 14% interest is compounded annually? The future value (FV) of this investment is $ 79,321.20. b. $12,000 is to be deposited at the beginning of each semiannual period for the next five years. What is the FV of this investment if 14% interest is compounded semiannually? The future value (FV) of this investment is $ 177,403.19 c. $6,000 is to be received at the end of each year for the next eight years. What is the PV of this investment if 4% interest is compounded annually? The present value (PV) of this investment is $ 40,396.47 d. $6,000 is to be received at the beginning of each semiannual period for the next eight years. What is the PV of this investment if 4% interest is compounded semiannually? The present value (PV) of this investment is $