Blossom Enterprises earns 5% on an investment that pays back $95,000 at the end of each of the next 6 years.Click here to view the factor table...What is the amount Blossom Enterprises invested to earn the 5% rate of return? (For calculation purposes, use 5 decimal places asdisplayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.)Blossom Enterprises invested $

To calculate the amount that Cullumber Enterprises invested, we can use the present value formula…

Answered: Blossom Enterprises earns 5% on an…

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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Similar questions

Suppose the Omega Graphics Company wishes to set aside an equal, annual, end-of-year amount in a “sinking fund account” earning 8.5 percent per annum over the next six years. The firm wants to have $5 million in the account at the end of six years to retire (pay off ) $5 million in outstanding bonds. How much must be deposited in the account at the end of each year? Hint: Use the math formula.
Assume that Karen Williams desires to accumulate $1,000,000 in 15 years using her money market fund balance of $209,004. At what interest rate must Karen’s investment compound annually? (Round answer to 0 decimal places, e.g. 5%.) Interest rate %
This question is based on the following information: Each of the three independent investments below has a life of 10 years. The cost of capital for the 3 investments is 14%. The PV of an annuity of P 1 for 10 years at 14% is 5.216. Amount (O) Annual cash inflows (I) Net present value (NPV) Investment A P449,400 P 100,000 ? Investment B ? 70,000 13,800 Investment C 198,208 ? 36,512 The amount of investment for investment B isA. P 351,320B. P 351,230C. P 350,000D. P 315,320
A company has had record profits and decided to use some of the profits to pay for manufacturing improvements. If the company can invest $1,600,000.00 in an a annuity will that will make payments at the beginning of every six months for 4 years. If the annuity pays 5.6%, compounded semi-annual. What is the size of payments that the company can expect?The payment amount will be $. (Round to 2 decimal places.)
Blossom Telecommunications Corp. has made an investment in another company that will guarantee it a cash flow of $25,000 each year for the next five years. If the company uses a discount rate of 19 percent on its investments, what is the present value of this investment? (Round factor values to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25.)
Find Simple Interest, A sum of $78000, is invested from March 13 until Dec 20 of the same year at 14.25% simple interest. using any two methods of computing Simple Interest:
SOLVE STEP BY STEP SHOW THE ENTIRE PROCEDURE2. Pepe invests $325,000 at 15.65 per annum compounded each month for a period of three months. Make the capitalization table
at the beginning of year one, you have $100,000. Investments A and B are available. Their cash flows are as follows year 1 investment A $-1, investment B $0 Year 2 investment A $.5, investment B $-1. Year three investment A .8 investment B .8. In year 4 investment a .2 investment B .7. Assume that any money not invested in a or B earns interest at an annual rate of 2.5%. Determine how to maximize your cash on hand in your four
Complete the table by finding the balance A when $18,000 is invested at rate r for t years, compounded continuously. (Round your answers to two decimal places.) r = 8% t 10 20 30 40 50 A $ $ $ $ $

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