ratio, which actually turned out to be 50%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.) Annual cash inflows that will arise from two competing investment projects are given below: The discount rate is 11%. Click here to view and to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Fraser Company will need a new warehouse in eight years. The warehouse will cost $500,000 to build. Click here to view and to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.32 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $66,000 each. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value ratio, which actually turned out to be 50%. What was the project's actual simple rate of return? (Round your answer to 2 decimal places.) Annual cash inflows that will arise from two competing investment projects are given below: The discount rate is 11%. Click here to view and to determine the appropriate discount factor(s) using tables. Required: Compute the present value of the cash inflows for each investment. Fraser Company will need a new warehouse in eight years. The warehouse will cost $500,000 to build. Click here to view and to determine the appropriate discount factor(s) using tables. Required: What lump-sum amount should the company invest now to have the $500,000 available at the end of the eight-year period? Assume that the company can invest money at: (Round your final answer to the nearest whole dollar amount.) The Caldwell Herald newspaper reported the following story: Frank Ormsby of Caldwell is the state's newest millionaire. By choosing the six winning numbers on last week's state lottery, Mr. Ormsby won the week's grand prize totaling $1.32 million. The State Lottery Commission indicated that Mr. Ormsby will receive his prize in 20 annual installments of $66,000 each. Click here to view and to determine the appropriate discount factor(s) using tables. Required: 1. If Mr. Ormsby can invest money at a 8% rate of return, what is the present value of his winnings? (Enter your answer in dollars and not in millions of dollars.) Present value
