FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please solve this problem without using Excel and show all steps. Question No.3 (5 points) An investor pays 100,000 today for a 5-year investment that

please solve this problem without using Excel and show all steps. image text in transcribed
Question No.3 (5 points) An investor pays 100,000 today for a 5-year investment that returns cash flows of 40,000 at the end of each years 1, 3 and 5. The cash flows can be reinvested at 5.0% per annum effective. Using an annual effective interest rate of 6%, calculate the net present value of this investment today. A. -824 B.-653 C.7 D. 653 E. 824

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing A Practical Approach

Auditing A Practical Approach

Authors: Robyn Moroney, Fiona Campbell, Jane Hamilton, Valerie Warren

3rd Canadian edition

1-119-40285-5, 111940276X, 978-1119566007

More Books

Students also viewed these Accounting questions

Question

★★★★★
To estimate the average daily consumption (in milligrams) of nutritional supplements taken by professional baseball players, a sample of players is randomly selected from the population of major...

Answered: 1 week ago

Question

★★★★★
What is your attitude toward life? Do you agree with the statement, Life sucks, then you die?

Answered: 1 week ago

Question

★★★★★
Flight decision expected value. If you think the probability of being called for an interview is 0.30, calculate the expected value of each action in Exercise 15. Which is the better action in this...

Answered: 1 week ago

Question

★★★★★
What promotion blend would be most appropriate for producers of the following established products? Assume average- to large-sized firms in each case and support your answer. a. Chocolate candy bars....

Answered: 1 week ago

Question

★★★★★
If we hold the firm's ability to produce cash constant, then minimizing the weighted average cost of capital (WACC) is the same as: Pick one Maximizing the market value of the firm Maximizing the...

Answered: 1 week ago

Question

★★★★★
Complete with MatLab *MatLab Code to modify: function [root,f_root,k]=falsePosBiesecker(f,a,b,maxIters) tolX=1e-12; tolF=1e-14; cOld=a; fa=f(a); fb=f(b); aCount=0; bCount=0; for k=1:maxIters c= (a*fb...

Answered: 1 week ago

Question

★★★★★
The figure below shows a storage tank holding natural gas. In an adjacent instrument room, a U-tube mercury manometer in communication with the storage tank reads L-1.9 m. If the atmospheric pressure...

Answered: 1 week ago

Question

★★★★★
Recursion Lab Longest Palindrome Subsequence (LPS) is a "poster child" for recursion and very hard to solve in any other way. In this lab you will create class named LPS and within that class you...

Answered: 1 week ago

Question

★★★★★
9. If an S corp., a calendar year taxpayer, has 72 individual shareholders and one of those shareholders sells his shares to a corporation on June 25, 20X6, when does the S corporation's tax year...

Answered: 1 week ago

Question

★★★★★
The freight forwarder has four different exporters with cargo going from Toronto to Paris via AirFrance. What contract is going to be signed between the freight forwarder and Air France? a. Master...

Answered: 1 week ago

Question

★★★★★
The data set below includes a random sample of the number of tornadoes that touched down in the United States for 5 months out of one year. What is the variance? Round your answer to the nearest...

Answered: 1 week ago

Question

★★★★★
=+10. Apply ABA format Often used in many of the arts, this structure repeats the headline's main idea in the closing line of the copy. The first

Answered: 1 week ago

Question

★★★★★
=+A refers to the headline. B refers to the body copy. The last A refers to the last line of copy. So, if the headline used Maxwell House's

Answered: 1 week ago

Question

★★★★★
=+ How would they dress? How would you talk to them? Then, just say what you want to say aloud. That's how you'll hear your own voice and natural delivery. Use it. But, this time write it.

Answered: 1 week ago

Previous Question Next Question