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: | |||||
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Principles of Accounting
Authors: Needles, Powers, crosson
11th Edition
1439037744, 978-1133626985, 978-1439037744
