Concept explainers
Videos
a.
To Determine: The
a.
Answer to Problem 10P
The future value compounded for 10 years is $895.42.
Explanation of Solution
Determine the future value compounded for 10 years using formula
Therefore, the future value compounded for 10 years using formula is $895.42.
Determine the future value compounded for 10 years using excel
Excel Spreadsheet:
Therefore, the future value compounded for 10 years using excel is $895.42.
b.
To Determine: The future value compounded for 2 years.
b.
Answer to Problem 10P
The future value compounded for 2 years is $1,552.92.
Explanation of Solution
Determine the future value compounded for 2 years using formula
Therefore, the future value compounded for 2 years using formula is $1,552.92.
Determine the future value compounded for 2 years using excel
Excel Spreadsheet:
Therefore, the future value compounded for 2 year using excel is $1,552.92.
c.
To Determine: The
c.
Answer to Problem 10P
The present value of due in 1 year is $279.20.
Explanation of Solution
Determine the present value of due in 1 year using formula
Therefore, the present value of due in 1 year is $279.20.
Determine the present value of due in 1 year using excel
Excel Spreadsheet:
Therefore, the present value of due in 1 year using excel is $279.20.
d.
To Determine: The present value of due in 2 years.
d.
Answer to Problem 10P
The present value of due in 2 years is $160.99.
Explanation of Solution
Determine the present value of due in 2 years using formula
Therefore, the present value of due in 2 years is $160.99.
Determine the present value of due in 2 years using excel
Excel Spreadsheet:
Therefore, the present value of due in 2 years using excel is $160.99.
Want to see more full solutions like this?
Chapter 4 Solutions
Corporate Finance: A Focused Approach (mindtap Course List)
- calculate ratios for the financial statment given and show all working manually: 1. Total Assets Turnover 2. Inventory Turnover 3. Inventory Periodarrow_forwardcalculate ratios for the financial statment given and show all working manually: 1. Debt Ratios 2. Debt to Equityarrow_forwardcalculate the following ratios for the statements and show all working: 1. Current Ratios 2. Quick Ratio 3. Cash Ratioarrow_forward
- Dont solve this question with incorrect values. i will give unhelpful . do not solvearrow_forwardJeff Krause purchased 1,000 shares of a speculative stock in January for $1.89 per share. Six months later, he sold them for $9.95 per share. He uses an online broker that charges him $10.00 per trade. What was Jeff's annualized HPR on this investment? Jeff's annualized HPR on this investment is %. (Round to the nearest whole percent.)arrow_forwardno ai do not answer this question if data is not clear or image is blurr. but do not amswer with unclear values. i will give unhelpful.arrow_forward
- Estefan Industies has a new project available that requires an initial investment of sex million. The project will provide unlevered cash flows of $925,000 per year for the next 20 years. The company will finance the project with a debt-value ratio of 35. The company's bonds have a YTM of 5.9 percent. The companies with operations comparable to this project have unlevered betas of 1.09, 1.17, 1.28, and 1.20. The risk-free rate is 3.6 percent, and the market risk premium is 7 percent. The tax rate is 21 percent. What is the NPV of this project?arrow_forwardno ai do not answer this question if data is not clear or image is blurr. please comment i will write values . but do not amswer with unclear values. i will give unhelpful.arrow_forwardno ai Image is blurr do not answer this question if data is not clear or image is blurr. please comment i will write values but do not amswer with unclear values. i will give unhelpful sure.arrow_forward
Principles of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax College