,Present and Future Values of Single Cash Flows for Different PeriodsFind the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using afinancial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" thevariable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d,and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent.a. An initial $500 compounded for 1 year at 7%.$b. An initial $500 compounded for 2 years at 7%.$c. The present value of $500 due in 1 year at a discount rate of 7%.$d. The present value of $500 due in 2 years at a discount rate of 7%.$Check My Work

To solve these problems, we will use the formulas for future value (FV) and present value (PV) of a…

Answered: , Present and Future Values of Single…

Excel Applications for Accounting Principles

4th Edition

ISBN:9781111581565

Author:Gaylord N. Smith

Publisher:Gaylord N. Smith

Chapter26: Capital Budgeting (capbud)

Section: Chapter Questions

Problem 6R: Reset the Data Section of the CAPBUD2 worksheet to the original values. In requirement 4, you...

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Present and Future Values of Single Cash Flows for Different Periods Find the following values, using the equations, and then work the problems using a financial calculator to check your answers. Disregard rounding differences. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent. An initial $600 compounded for 1 year at 6%. $   An initial $600 compounded for 2 years at 6%. $   The present value of $600 due in 1 year at a discount rate of 6%. $   The present value of $600…
nd the present value of the following ordinary annuities. (Notes: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in many situations, to see how changes in input variables affect the output variable. Also, note that you can leave values in the TVM register, switch to Begin Mode, press PV, and find the PV of the annuity due.) Do not round intermediate calculations. Round your answers to the nearest cent. $600 per year for 10 years at 12%. $    $300 per year for 5 years at 6%. $    $600 per year for 5 years at 0%. $    Now rework parts a, b, and c assuming that payments are made at the beginning of each year; that is, they are annuities due. Present value of $600…
Present and Future Values of Single Cash Flows for Different Interest Rates Use both the TVM equations and a financial calculator to find the following values. (Hint: If you are using a financial calculator, you can enter the known values and then press the appropriate key to find the unknown variable. Then, without clearing the TVM register, you can "override" the variable that changes by simply entering a new value for it and then pressing the key for the unknown variable to obtain the second answer. This procedure can be used in parts b and d, and in many other situations, to see how changes in input variables affect the output variable.) Do not round intermediate calculations. Round your answers to the nearest cent. An initial $700 compounded for 10 years at 6%. $   An initial $700 compounded for 10 years at 12%. $   The present value of $700 due in 10 years at a 6% discount rate. $   The present value of $700 due in 10 years at a 12% discount rate. $
Subject:- Accouning
a. Recreate the income statement and balance sheet using formulas wherever possible. Each statement should be on a separate worksheet. Try to duplicate the formatting exactly. b. On another worksheet, create a statement of cash flows for 2020. Do not enter any numbers directly on this worksheet. All formulas should be linked directly to the source on previous worksheets. C. Using Excel's outlining feature, create an outline on the statement of cash flows that, when collapsed, shows only the subtotals for each section. d. Suppose that sales were $425,000 in 2020 rather than $412,500. What is the 2020 net income and retained earnings? e. Undo the changes from part d, and change the tax rate to 20%. What is the 2020 net income and retained earnings?
The NPV function automatically discounts each of the cash flows and sums the discounted values. Verify that it does this correctly for Acron’s model by calculating the NPV the long way. That is, discount each cash flow and then sum these discounted values. Use Excel formulas to do this, but don’t use the NPV function. (Hint: Remember that the discounted value of $1received t years from now is 1y(1 1 r)t dollars today.)
Reset the Data Section of the CAPBUD2 worksheet to the original values. In requirement 4, you assessed the sensitivity of the investment’s internal rate of return to changes in some of the input data. This was done in a trial-and-error fashion. Click the Chart sheet tab. Presented on the screen is a graphical analysis of the sensitivity of the internal rate of return to changes in annual cash flows. To demonstrate the usefulness of such a chart, note the ease with which you are able to answer the following questions that might be of interest to the owner: What annual cash flow (approximately) is required to: earn 0% rate of return? _______________ earn 10% rate of return? _______________ earn over 20% rate of return? _______________ Approximately, how much is the rate of return reduced for each drop of $10,000 annual cash flow? When the assignment is complete, close the file without saving it again. Worksheet. The CAPBUD2 worksheet handles only cash inflows that are even in amount each year. Many capital projects generate uneven cash inflows. Suppose that the new store had expected cash earnings of $80,000 per year for the first two years, $140,000 for the next four years, and $220,000 for the last four years. The new store will generate the same total cash return ($1,600,000) as in the original problem, but the timing of the cash flows is different. Alter the CAPBUD2 worksheet so that the NPV and IRR calculations can be made whether there are even or uneven cash flows. When done, preview the printout to make sure that the worksheet will print neatly on one page, and then print the worksheet. Save the completed file as CAPBUDT. Hint: One suggestion is to label column F in the scratch pad as Uneven cash flows. Enter the uneven cash flows for each year. Modify FORMULA3 to include these cash flows. Modify the formulas in the range E30 to E39 to include the new data. Then set cell E10 (estimated Annual Net Cash Inflow) to zero. When you have even cash flows, use cell E10 and set column F in the scratch pad to zeros. If you have uneven cash flows, set cell E10 to zero and fill in column F in the scratch pad. Note that this solution causes garbage to come out in cells E15 and E16 because those formulas were not altered. Check figure for uneven cash flows: NPV (cell E17), $68,674. Chart. Using the CAPBUD2 file, develop a chart just like the one used in requirement 6 to show the sensitivity of net present value to changes in cost of the investment amount from $440,000 to $500,000 (use $10,000 increments). Complete the Chart Tickler Data Table and use it as a basis for preparing the chart. Enter your name somewhere on the chart. Save the file again as CAPBUD2. Print the chart.
Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Determine the present value of the following single amounts. Note: Use tables, Excel, or a financial calculator. Round your final answers to nearest whole dollar amount. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) 1. 2. 3. 4. Future Amount $ 25,000 $ 19,000 $ 30,000 $ 45,000 ¡= 6% 10% 12% 11% n = 11 14 29 10 Present Value
Finance, or financial management, requires the knowledge and precise use of the language of the field. Match the terms relating to the basic terminology and concepts of the time value of money on the left with the descriptions of the terms on the right. Read each description carefully and type the letter of the description in the Answer column next to the correct term. These are not necessarily complete definitions, but there is only one possible answer for each term. Term Answer Description Discounting A. A cash flow stream that is created by a lease that requires the payment to be paid on the first of each month and a lease period of three years. Time value of money B. A cash flow stream that is created by an investment or loan that requires its cash flows to take place on the last day of each quarter and requires that it last for 10 years. Amortized loan C. A schedule or table that reports the amount of principal and the amount of interest that…
To solve for the FV of the cash flow stream with a calculator that doesn’t havethe NFV key, do the following:Enter N = 6, I/YR = 8, PV = -923.98, and PMT = 0.Solve for FV = $1,466.24. how can I apply this on Excel for some reason it doesn't allow me or give me answer
Could you please give me a brief overview of what "cash flow for ROR analysis" is? Thanks.
Which of the following is an advantage of the average accounting return (AAR)? Multiple choice question. It is based on cash flows and market value. It accounts for the time value of money. Its input data are easily available. It uses an arbitrary benchmark cutoff rate.

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