An investment will pay $21,600 at the end of the first year, $31,600 at the end of the second year, and $51,600 at the end of the thirdyear. (FV of $1. PV of $1. EVA of $1, and PVA of $1)Note: Use the appropriate factor(s) from the tables provided.Required:Determine the present value of this investment using a 9 percent annual interest rate.Note: Round your intermediate calculations and final answer to nearest whole dollar.Present value of investment

Detailed explanation:Step 1: Determine the First Year's Cash Flow's Present Value.At the end of the…

Answered: An investment will pay $21,600 at the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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An investment of $3,100 is made for 4 months at an annual simple interest rate of 3.75%. What is the future value of the investment (in dollars)?
Find the present value of an investment that will pay $9,000 at the end of Years 10, 11, and 12. Use a discount rate of 10 percent.
Tom Thompson expects to invest $18,000 at 9% and, at the end of a certain period, receive $92,551. How many years will it be before Thompson receives the payment? (PV of $1. FV of $1. PVA of $1. and EVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value $ 92,551 Present Value $ 18,000 = Table Factor Years years
An investment will pay $16,400 at the end of each year for eight years and a one-time payment of $164,000 at the end of the eighth year. (FV of $1. PV of $1, EVA of $1, and PVA of $1) Note: Use the appropriate factor(s) from the tables provided. Required: Determine the present value of this investment using a 6 percent annual interest rate. Note: Round your intermediate calculations and final answer to nearest whole dollar. Present value of investment
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19. Find the Macaulay and Modified durations of an investment that pays $2,000 at the end of year 2 and $3,000 at the end of year 5. Assume a level annual effective interest rate of i = 3%. Be sure to use the correct units for each answer.
The American Pharmaceutical Company (APC) has a policy that all capital investments must have a five- year or less discounted payback period in order to be considered for funding. The MARR at APC is 8% per year. Is the above project able to meet this benchmark for funding? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8 ber year. \table[[, ], [End of Year,Cash Flow ], [0,-$285,000 K The American Pharmaceutical Company (APC) has a policy that all capital investments must have a five-year or less discounted payback period in order to be considered for funding. The MARR at APC is 8% per year. Is the above project able to meet this benchmark for funding? Click the icon to view the interest and annuity table for discrete compounding when the MARR is 8per year. …. The payback period is years. (Round to the nearest whole number.) End of Year 8123456 0 6-11 Cash Flow -$285,000 - $30,000 $65,000 $160,000 $230,000 $335,000 $95,000
A project has estimated annual net cash flows of $15,000 for two years and is estimated to cost $32,500. Assume a minimum acceptable rate of return of 20%. Use the Present Value of an Annuity of $1 at Compound Interest table below. Present Value of an Annuity of $1 at Compound Interest Year 6% 10% 12% 15% 20% 1 0.943 0.909 0.893 0.870 0.833 2 1.833 1.736 1.690 1.626 1.528 3 2.673 2.487 2.402 2.283 2.106 4 3.465 3.170 3.037 2.855 2.589 5 4.212 3.791 3.605 3.353 2.991 6 4.917 4.355 4.111 3.785 3.326 7 5.582 4.868 4.564 4.160 3.605 8 6.210 5.335 4.968 4.487 3.837 9 6.802 5.759 5.328 4.772 4.031 10 7.360 6.145 5.650 5.019 4.192 Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value. Net present value of the project (round to the nearest dollar) $fill in the blank 1 Present value index (rounded to two decimal places) fill in the blank 2

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