Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sunland Company is considering an investment which will return a lump sum of $3,100,000 4 years from now. What amount should Sunland Company pay for

Sunland Company is considering an investment which will return a lump sum of $3,100,000 4 years from now. What amount should Sunland Company pay for this investment to earn an 11% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, e.g. 5,275.) Click here to view the factor table. Amount pay for investment $
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Sunland Company is considering an investment which will return a lump sum of $3,100,0004 years from now. What amount should Sunland Company pay for this investment to earn an 11% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 0 decimal places, eg, 5,275.) Click here to view the factor table. Amount pay for investment TABLE 1 Future Value of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \\ \hline \multicolumn{11}{|l|}{ (n) } \\ \hline 0 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 1 & 1.04000 & 1.05000 & 1.06000 & 1.07000 & 1.08000 & 1.09000 & 1.10000 & 1.11000 & 1.12000 & 1.15000 \\ \hline 2 & 1.08160 & 1.10250 & 1.12360 & 1.14490 & 1.16640 & 1.18810 & 1.21000 & 1.23210 & 1.25440 & 32250 \\ \hline 3 & 1.12486 & 1.15763 & 1.19102 & 1.22504 & 1.25971 & 1.29503 & 1.33100 & 1.36763 & & \\ \hline 4 & 1.16986 & 1.21551 & 1.2 & 1. & 6049 & 1.41158 & 1.46410 & 1.51807 & 1.57352 & .74901 \\ \hline 5 & 1.21665 & 1.27628 & 1.3 & 1. & 3 & 52 & 1.61051 & 1.68506 & 1.76234 & 2.01136 \\ \hline 6 & 1.26532 & 1.34010 & 1.41852 & 1.50073 & 1.58687 & 1.67710 & 1.77156 & 1.87041 & 1.97382 & 231306 \\ \hline 7 & 1.31593 & 1.40 & & 1.605 & & & & & & \\ \hline 8 & 1.36857 & 1.47746 & 1.59385 & 1.71819 & 93 & 56 & 2.14359 & 2.3 & & 5902 \\ \hline 9 & 1.42331 & 1.55133 & 1.68948 & 1.83846 & 1.99900 & 2.17189 & 2.35795 & 2.55803 & & 3.51788 \\ \hline 10 & 1.48024 & 1.62889 & 1.79085 & 1.96715 & & 2.36736 & 2.5 & 2.83942 & 3.10585 & 4.04556 \\ \hline 11 & 1.53945 & 1.71034 & 1.89830 & 2,10485 & 2. & 2.58 & 2.8 & 3.1 & & 4.65239 \\ \hline 12 & 103 & 86 & & & & 2.81 & & & & \\ \hline 13 & 1.66507 & 1.88565 & 2.13293 & 2.40985 & 2.71962 & 3.06581 & 227 & 3.8 & 49 & 6.15279 \\ \hline 14 & 1.73168 & 1.97993 & 2.26090 & 2.57853 & 2.93719 & 3.34173 & 3.79750 & 4.31044 & 4.88711 & 7.07571 \\ \hline 15 & 1.80094 & 2.07893 & 2.39656 & 2.75903 & 3.17217 & 3.64248 & 4.17725 & 4.78459 & 5.47357 & 8.13706 \\ \hline 16 & 1.87298 & 2.18287 & 2.54035 & 2.95216 & & 3,97031 & 4.59497 & 5.31089 & 6.13039 & 9.35762 \\ \hline 17 & 1.94790 & 2.29202 & 7 & & & 4.32763 & 5.05447 & 5.89509 & 6.86604 & 10.76126 \\ \hline 18 & 2.02582 & 2.40662 & 2.85434 & 3.37993 & 3.99602 & 4.71712 & 5.55992 & 6.54355 & 7.68997 & 12.37545 \\ \hline 19 & 2.10685 & 2.52695 & 3.02560 & 3.61653 & 4.31570 & 5.14166 & 6.11591 & 7.26334 & 8.61276 & 14.23177 \\ \hline 20 & 2.19112 & 2.65330 & 3.20714 & 3,86968 & 4.66096 & 5.60441 & 6.72750 & 8.06231 & 9.64629 & 16.36654 \\ \hline \end{tabular} TABLE 2 Future Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|l|}{ (n) } \\ \hline Payme & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & 1.00000 & 1.00000 & 1.00000 & 1,0000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 & 1.00000 \\ \hline 2 & & & & 2.0700 & 2.08000 & 2.09000 & 2.10000 & 2.11000 & & \\ \hline 3 & 3.12160 & 3.15250 & 3.18360 & 3.2149 & 3.24640 & 3.27810 & 3.31000 & 3.34210 & & \\ \hline 4 & 4.24646 & 4.31013 & 4.37 & 4.43 & 4.50611 & & & & & \\ \hline 5 & 5,41632 & & 5.63709 & 5.7507 & 5.86660 & 5.98471 & 6.10510 & 6.22780 & 6.35285 & \\ \hline 6 & 6.63298 & 6.80191 & 6.97532 & 7.1533 & 7.33592 & 7.52334 & 7.71561 & 7,91286 & 8.11519 & 8.75 \\ \hline 7 & 7.89829 & & & 8.6540 & 8.9 & & & & & \\ \hline 8 & 9.21423 & 9.54911 & 9.89 & 10.2598 & 10.6 & & & & & \\ \hline 9 & 10.58280 & 11.02656 & 11.49 & 11.9780 & 12. & 04 & & & 14. & \\ \hline 10 & & & & 13 & 14.48656 & 15.19293 & 15.93743 & 16.72201 & & \\ \hline 11 & 13,48635 & 14.20 & 14.9 & 15 & 16.64549 & 17.56029 & 18.53117 & 19.56143 & 20. & \\ \hline 12 & 15.02581 & 15.91713 & 16.86994 & & 18.97 & 72 & & & & \\ \hline 13 & 16.62684 & 17.71298 & 18.88214 & 20 & 21.49 & 22. & 24 & 26.21 & 28. & \\ \hline 14 & 18.29191 & 19.59863 & 21.015 & 22.5505 & 24.21492 & 26.01919 & 27.97498 & 30.09492 & 32.39 & \\ \hline 15 & 20.02359 & 21.57856 & 23.27597 & 25.1290 & 27.15211 & 29.36092 & 31.77248 & 34.40 & 37.27972 & 47.58041 \\ \hline 16 & 21.82453 & 23.65749 & 25.67253 & & 30.32428 & 33.00340 & 35.94973 & 39.18995 & 42.75328 & 55.71747 \\ \hline 17 & 23.69751 & 25.8 & & & 33.75023 & 36.97351 & 40.54470 & 44.500 & 48 & 65 \\ \hline 18 & 25.64541 & 28.1 & & & 37.45024 & 41.30134 & 45.59917 & 50.395 & 55. & \\ \hline 19 & 27.67123 & 30.53900 & & 37.3790 & 41.44626 & 46.01846 & 51.15909 & & & \\ \hline 20 & 77808 & 33.06595 & 36.78559 & 40.9955 & 45,76196 & 51.16012 & 57.27500 & 64.20283 & 72.05244 & 102,44358 \\ \hline \end{tabular} TABLE 3 Present Value of 1 TABLE 4 Present Value of an Annuity of 1 \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \\ \hline Pay & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 15% \\ \hline 1 & .96154 & .95238 & .94340 & 0.93458 & 92593 & .91743 & 90909 & .90090 & .89286 & .86957 \\ \hline 2 & 1.88609 & 1.85941 & & 1.80802 & 1.78326 & 1.75911 & 1.73554 & 1.71252 & 1.69005 & 1.62571 \\ \hline 3 & 2.77509 & 2.72325 & 2.67301 & 2.62432 & 2.57710 & 2.53130 & 2.48685 & 2.44371 & 2.40183 & 2.28323 \\ \hline 4 & 3.62990 & 3.54595 & 3.46511 & 3.38721 & 3.31213 & 3.23972 & 3.16986 & 3.10245 & 3.03735 & 2.85498 \\ \hline 5 & 4.45182 & 4.32948 & 4.21236 & 4.10020 & 3.99271 & 3.88965 & 3.79079 & 3.69590 & 3.60478 & 335216 \\ \hline 6 & 5.24214 & 5.07569 & 4.91732 & 4.76654 & 4.62288 & 4.485 & 4.35526 & 4.23054 & 4.11141 & 3.78448 \\ \hline 7 & 6,00205 & 5.78637 & 5.58238 & 5.38929 & 5.20637 & 5.03295 & 4.86842 & 4.71220 & 4.5 & 4.16042 \\ \hline 8 & 6.73274 & 6.46321 & 6.20979 & 5.97130 & 5.74664 & 5.53482 & 5.33493 & 5.14612 & 4.96764 & 4.48732 \\ \hline 9 & 7.43533 & 7.10782 & 6.80169 & 6.51523 & 6.24689 & 5.99525 & 5.75902 & 5.53705 & 5.32825 & 4.77158 \\ \hline 10 & 8.11090 & 7.72173 & 7,36009 & 7.02358 & 6.71008 & 6.41766 & 6.14457 & 5.88923 & 5.65022 & 5.01877 \\ \hline 11 & 8.76048 & 8.30641 & 7.88687 & 7.49867 & 7.13896 & 6.80519 & 6.49506 & 6.20652 & 5.93770 & 5.23371 \\ \hline 12 & 9.38507 & 8.86325 & 838384 & 7.94269 & 7.53608 & 7.16073 & 6.81 & 6.49 & & 5.42062 \\ \hline 13 & 9.98565 & 9.39357 & 8.85268 & 8.35765 & 7.90378 & 7.48690 & 7.10336 & 6.74987 & 6.42355 & 5.58315 \\ \hline 14 & 10.56312 & 9.89864 & 9.29498 & 8.74547 & 8.24424 & 7.78615 & 7.36669 & 6.98187 & 6.62817 & 5,72448 \\ \hline 15 & 11.11839 & 10.37966 & 9.71225 & 9.10791 & 8.55948 & 8.06069 & 7.60608 & 7.19087 & 6.81086 & 5.84737 \\ \hline 16 & 11.65230 & 10.83777 & 10.10590 & 9.44665 & 8.85137 & 8.31256 & 7.82371 & 7.37 & 6.97 & 424 \\ \hline 17 & & 11.27407 & 10.4 & & & & & & & 716 \\ \hline 18 & 12.65930 & 11.68959 & 10.82760 & 10.05909 & 937189 & 8.75563 & 8.20141 & & & 6.12797 \\ \hline 19 & 13.13394 & 12.08532 & 11.15812 & 10.33560 & 9.60360 & 8.95012 & 8.36 & 7.8 & & 6.19823 \\ \hline 20 & 13.59033 & 12.46221 & 11.46992 & 10.59401 & 9.81815 & 9.12855 & 8.51356 & 7.96333 & 7.46944 & 6.25933 \\ \hline \end{tabular}

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

Step: 3

blur-text-image

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

Financial Accounting

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

7th Canadian Edition

0135433061, 9780135433065

More Books

Students also viewed these Accounting questions

Question

15.7 Explain the six steps in the termination interview

Answered: 1 week ago

Question

15.1 Define employee relations and employee engagement.

Answered: 1 week ago