Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $155,000, received two years from today. Subsequent annual cash flows will grow at 5 percent in perpetuity. What is the PV of the technology if the discount rate is 10 percent? (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.) Present value of the technology 2$

Mark Weinstein has been working on an advanced technology in laser eye surgery. His technology will be available in the near term. He anticipates his first annual cash flow from the technology to be $155,000, received two years from today. Subsequent annual cash flows will grow at 5 percent in perpetuity. What is the PV of the technology if the discount rate is 10 percent? (Do not round intermediate calculations. Round the answers to 2 decimal places. Omit $ sign in your response.) Present value of the technology 2$

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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You expect to receive $29,000 at graduation in two years. You plan on investing it at 10 percent until you have $164,000. How long will you wait from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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You can use machine A with an initial investment of $1,000 and a maintenance cost of $7,980 annually for the next five years. Alternatively, you can purchase machine B for $12,000 initial cost today, plus $5,000 annual maintenance with the same 5 years life. At a cost of capital of 15%, you should: Show your Work A. Use machine A and save $600 in equivalent annual annuity. B. Use machine A and save $302 in equivalent annual annuity. C. Use the machine B and save $596 in equivalent annual annuity. D. Buy the machine C and save $600 in equivalent annual annuity. E. Buy machine B and save $596 in equivalent annual annuity.
If you invest $10,000 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. In 50 years at 8 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
c. A person who invests $1, 600 each year finds one choice that is expected to pay 3 percent per year and another choice that may pay 4 percent. What is the difference in return if the investment is made for four years? Round your answer to the nearest dollar. (Hint: Use Appendox A-3 or the Garman/Forgue companion website.) Round Future Value of Series of Equal Amounts in intermediate calculations to four decimal places.
Direction: Solve manually, use 5 decimal in interest rate, and draw the cash flow diagram. A woman is considering giving an endowment to a university in order to provide payments of P5000 and decreasingly by 4% at the end of each quarter during a year. If interest rate is 10% compounded monthly, what is the capitalized equivalent that must be deposited now so that the bi-monthly payment can be repeated forever?
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Keith Riggins expects an investment of $125,473.50 to return $15,000 annually for several years. If Riggins earns a return of 10%, how many annual payments will he receive? (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Present Value Annuity Payment = ון Table Factor Annual Payments payments
If you invest $9,400 per period for the following number of periods, how much would you have in each of the following instances? Use Appendix C for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. In 12 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) In 25 years at 9 percent? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Your answer is incorrect. Sheridan Company is considering investing in an annuity contract that will return $33,500 annually at the end of each year for 15 years. Click here to view the factor table. What amount should Sheridan Company pay for this investment if it earns an 10% return? (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round answer to 2 decimal places, e.g. 25.25.) Sheridan Company should pay $ eTextbook and Media Save for Later SUPP Attempts: 2 of 3 used Submit Answer
Your grandfather has offered you a choice of one of the three following alternatives: $10,000 now; $4,800 a year for eight years; or $56,000 at the end of eight years. Use Appendix B and Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a-1. Assuming you could earn 9 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) a-2. Which alternative should you choose? multiple choice 1 $56,000 received at end of eight years $4,800 received each year for eight years $10,000 received now b-1. If you could earn 10 percent annually, compute the present value of each alternative: (Do not round intermediate calculations. Round your final answers to 2 decimal places.) b-2. Which alternative should you choose? multiple choice 2 $56,000 received at end of eight years $4,800 received each year…
Indicate which federal department or agency would be responsible in the following scenarios: a. An employee wants to retire and apply for Canada Pension Plan benefit b. The new type of earning introduced in the company but not sure if it is insurable -