Question 5 - Homework 1

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Fayetteville State University *

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320

Subject

Finance

Date

Feb 20, 2024

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pdf

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1

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1/27/24, 12:51 PM Question 5 - Homework 1 - Connect https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252Fnewconnect.mheducation.co… 1/1 eBook Hint Ask References 5 10/10 points awarded Scored Show correct answers Explanation Note: Intermediate answers are shown below as rounded, but the full answer wa complete the calculation. The time line is: 0 1 2 3 4 5 6 PV $78,000 $78,000 $78,000 $78,000 $78,000 $78,000 $ To find the PVA, we use the equation: PVA = C ({1 [1/(1 + r ) t ]}/ r ) PVA = $78,000{[1 (1/1.0850 7 )]/.0850} PVA = $399,244.05 Calculator Solution: Enter 7 8.50% ±$78,000 N I/Y PV PMT Solve for $399,244.05 Homework 1 90/100 Total points awarded Help Exit Submitted Your company will generate $78,000 in annual revenue each year for t years from a new information database. If the appropriate discount rate is what is the present value? (Do not round intermediate calculations an answer to 2 decimal places, e.g., 32.16.) Present value $ 399,244.05 Prev of 10 Next 5
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