Question
Your company has chosen to take on two projects. The first is for three years and pays $1,560,000 annually. The second is for four years
Your company has chosen to take on two projects. The first is for three years and pays $1,560,000 annually. The second is for four years and pays $2,000,000 annually. The interest rate for both is 5.5%. What is the Future Value of this portfolio? What is the present value of this portfolio?
| Investment #1 | Investment #2 | ||||
| Payment | |||||
| r/YR = | |||||
| n = | |||||
| Formula: | FVA = PMT*[((1+r)^n-1))/r] | ||||
| Formula: | PVA = PMT*[(1/r)*(1-(1/(1+r)^n))] | ||||
| Portfolio Future Value Total: | |||||
| Portfolio Present Value Total: | |||||
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
