Valuation of Assets

1. Using the information provided in the following table, find the value of each asset

(See the attached document for the table).

I submitted this assignment as of yesterday; however, it is late in the next day here, Saturday, and I would like to use the results of this assignment to complete my homework for this course which is due tomorrow. I will be most grateful for any help which you may be able to provide.

Valuation of Assets 1. Using the information provided in the following table, find the value of each asset (See the attached document for the table). When solving for the present value of an ordinary annuity using an Excel spreadsheet, you will need to enter the values of Rate, Nper, Fv, Pmt, and Type into the present value function. Type is equal to 1 if the payments are made at the beginning of the periods and 0 if at the end. NOTE: Please compute all solutions in an Excel spreadsheet. Fill in the Missing Blanks. The asset has a life in years of ____years. (Type a whole number.) The required rate of return, is _____ %. (Type a whole percentage.) The annual cash flow, CF , is $ .____ (Round to the nearest dollar.) The present value, PV, of Asset A is $ ._____ (Round to the nearest cent.) The total annual payment, CF, is $ _____. (Round to the nearest dollar.) The required return, r, as a decimal, is___ . (Round to two decimal places.) The present value, PV, of Asset B is $ .____. (Round to the nearest cent.) When solving for the present value of a single cash flow using an Excel spreadsheet, you will need to enter the values of Rate, Nper, Fv, Pmt, and Type into the present value function The nonzero cash flow for Asset C is $_____ . (Round to the nearest dollar.) The number of years, n, until the nonzero cash flow will occur is___ years. (Type a whole number.) The discount rate, r, is____ %. (Type a whole percentage.) The present value, PV, of Asset C is $______ . (Round to the nearest cent.) The total number of years, n, Asset D is expected to provide cash flows is_____ years. (Type a whole number.) The required rate of return on Asset D, r, is %. (Type a whole percentage.) The annual annuity cash flow, CF , in years 1 through 5 is $ _______. (Round to the nearest dollar.) The amount of the cash flow in year 6, , is $____ . (Round to the nearest dollar.)F Vn The present value, PV, of Asset D is $_______ . (Round to the nearest cent.) The required rate of return on Asset E, r, is %. (Type a whole percentage.) The present value, V0, of Asset E is $ . (Round to the nearest cent.) Asset End of Year A 1 2 3 B C 1 through &inf; D 1 through 5 E 1 2 3 4 5 6 1 2 3 4 5 6 Amount 3000 17% 3000 3000 300 16% 0 16% 0 0 0 31000 1600 12% 8000 7000 14% 8000 10000 12000 9000 6000