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Using your calculator or Excel, calculate the present value of one dollar 20 years in the future with a 20% interest rate. What do
Using your calculator or Excel, calculate the present value of one dollar 20 years in the future with a 20% interest rate. What do these results tell you? Using your calculator or Excel, calculate the future value of $2395.02 deposited and using the following scenarios determine which outcome would provide a great return. 5 years at an interest rate of 9%. 3 years at an interest rate of 12% 7 years at an interest rate of 6% 10 years at an interest rate of 5% 12 years at an interest rate of 3% Show your calculations of the future value. Interpret the results of your calculations. In your new role as division director, you are responsible for explaining to the CEO which scenario would be more advantageous in the purchase of 3 new processing machines. The CEO desires to purchase the machinery over time in stages of 2-3 years, 3-7 years, and 8-12 years. However, based on your analysis, the CEO will make the purchase decision. After you have calculated the FV, explain to your CEO which option you choose and why it would be more beneficial for the company? What are the pros and cons of a higher return in the short run? In your reply to peers, state whether or not you agree with the peer's conclusions and why. Include 2 scholarly resources to support your answer. Be sure to post an initial, substantive response by Thursday at 11:59 p.m. MT and respond to 2 or more peers with substantive responses by Sunday at 11:59 p.m. MT. A substantive initial post answers the question presented completely and/or asks a thoughtful question pertaining to the topic. Substantive peer responses ask a thoughtful question pertaining to the topic and/or answers a question (in detail) posted by another student or the instructor.
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Present Value Calculation The present value of 1 in 20 years at a 20 interest rate can be calculated using the formula PV FV 1 rn Where PV present val...Get Instant Access to Expert-Tailored Solutions
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