Problem 5-30 Future and Present Value of an Annuity Due (LG5-6)

If you start making $265 monthly contributions today and continue them for four years, what is their future value if the compounding rate is 9.75 percent APR? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Future value annuity

$

What is the present value of this annuity? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Present value annuity

$

Problem 13-1 NPV with Normal Cash Flows (LG13-3)

Compute the NPV for Project M if the appropriate cost of capital is 7 percent. (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your final answer to 2 decimal places.)

Project M
Time:	0	1	2	3	4	5
Cash flow	$1,700	$490	$620	$660	$740	$240

NPV

$

Should the project be accepted or rejected?

	Accepted
	Rejected