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Please solve for the following: this is all the information A c E F G H 1 Name: Managerial Accounting Chapter 10 2 3 4

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A c E F G H 1 Name: Managerial Accounting Chapter 10 2 3 4 5 Exercise 10-2A Part A Only Future Value Part a Present Value Factor (Table 1) Present Value 7 8 9 10 11 Present Value 12 Exercise 10-4A Parts A and B Only FV x PV Factor from Table 1 for each payment = PV Future Value Present Value Factor (Table 1) Part a 25,000 25,000 25,000 Total Present Value 13 14 15 16 17 Part b Future Value Present Value Factor (Table 2) Present Value 18 19 20 21 470 Chapter 10 LO 10-1 Exercise 10-2A Determining the present value of a lump-sum future cash receipt Larry Mattingly turned 20 years old today. His grandfather had established a trust fund that will pay him $120,000 on his next birthday. However, Larry needs money today to start his college education, and his father is willing to help. Mr. Mattingly has agreed to give Larry the present value of the $120.000 future cush inflow, assuming a 6 percent rate of return. Required Round your figures to the nearest whole dollar. a. Use a present value table to determine the amount of cash that Larry Mattingly's father should give him b. Use an algebraic formula to prove that the present value of the trust fund (the amount of cash computed in Requiremental) is equal to its $120,000 future value. LO 10-1 Exercise 10-4A Determining the present value of an annuity The dean of the School of Fine Arts is trying to decide whether to purchase a copy machine to place in the lobby of the building. The machine would add to student convenience, but the dean feels com- pelled to earn an 8 percent return on the investment of funds. Estimates of cash inflows from copy machines that have been placed in other university buildings indicate that the copy machine would probably produce incremental cash inflows of approximately $25.000 per year. The machine is expected to have a three-year useful life with a zero salvage value. Required Round your figures to two decimal points a. Use Present Value Appendix Table 1 to determine the maximum amount of cash the dean should be willing to pay for a copy machine. b. Use Present Value Appendix Table 2 to determine the maximum amount of cash the dean should be willing to pay for a copy machine c. Explain the consistency or lack of consistency in the answers to Requirements a and D

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