sa result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance packag $220,000 cash, another $220,000 to be paid in one year, and an annuity of $42,000 to be paid each year for 20 years. Use prem alue tables to compute the present value of the complete package, assuming an interest rate of 7 percent. (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $3) (Use appropriate factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Cash Payment Present value of $220,000 face value Present value of $42.000 annuity Total Table values based on 7% 1 7% 20

sa result of a slowdown in operations, Mercantile Stores is offering to employees who have been terminated a severance packag $220,000 cash, another $220,000 to be paid in one year, and an annuity of $42,000 to be paid each year for 20 years. Use prem alue tables to compute the present value of the complete package, assuming an interest rate of 7 percent. (Euture Value of $1. Present Value of $1. Euture Value Annuity of $1. Present Value Annuity of $3) (Use appropriate factor(s) from the tables provided. Round "Present Value" to nearest whole dollar amount.) Cash Payment Present value of $220,000 face value Present value of $42.000 annuity Total Table values based on 7% 1 7% 20

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Your company will generate $63,000 in annual revenue each year for the next seven years from a new information database. If the appropriate discount rate is 7.50 percent, what is the present value? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
On January 1, a company agrees to pay $28,000 in nine years. If the annual interest rate is 3%, determine how much cash the company can borrow with this agreement. (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.)
Suppose an individual makes an initial investment of $1,400 in an account that earns 7.0%, compounded monthly, and makes additional contributions of $100 at the end of each month for a period of 12 years. After these 12 years, this individual wants to make withdrawals at the end of each month for the next 5 years (so that the account balance will be reduced to 50). (Round your answers to the nearest cent) (a) How much is in the account after the last deposit is made? (b) How much was deposited? 1 (e) What is the amount of each withdrawal? (0) What is the total amount withdrawn? - 3 Need Help?
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Assume that Sonic Foundry Corporation has a contractual debt outstanding. Sonic has available two means of settlement. It can either make immediate payment of $2,673,000, or it can make annual payments of $347,100 for 15 years, each payment due on the last day of the year. Click here to view factor tables. Which method of payment do you recommend, assuming an expected effective interest rate of 10% during the future period? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value of annual payments Recommended payment method Annual Payments 44
Solve the following problems using the concept of amortization 1. Show the amortization schedule for a loan P15,000 at 4% interest compounded monthly, payable for 12 months. 2. ABC Realty sold a piece of land for P250,000. A down payment of P50,000 was made and the remainder is to be paid in equal semiannual installments, the first due 6 months after the date of sale. The interest is 8% compounded semiannually and the debt is to be amortized in 5 years. a. How much semiannual payment is required? b. What will the total amount of the payment be? How much interest will be paid? d. What is the total cost of the property? С. e. Prepare an amortization schedule for the present value of the loan after making the down payment.
7. A company must cancel a loan whose amount will have a value of $ 300,120.45 at the end of 6 years, if the company agrees to make semi-annual payments equal to 3.5% per annum effective. What will be the value of payment if you make the first one 18 months after the transaction? $ 27,742.78 8. What amount would have to be invested at the end of each year for the next 8 years, at 4% convertible? semiannually to have $ 5,000 at the end of the term. $ 541.87
Give typing answer with explanation and conclusion
On January 1, a company agrees to pay $14,000 in three years. If the annual interest rate is 9%, determine how much cash the company can borrow with this agreement. (PV of $1. EV of $1. PVA of $1. and FVA of $1) (Use appropriate factor(s) from the tables provided. Round "Table Factor" to 4 decimal places.) Future Value Table Factor Amount Borrowed

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