Loose Leaf for Foundations of Financial Management Format: Loose-leaf
Loose Leaf for Foundations of Financial Management Format: Loose-leaf
17th Edition
ISBN: 9781260464924
Author: BLOCK
Publisher: Mcgraw Hill Publishers
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Chapter 9, Problem 3P

a. What is the present value of $140,000 to be received after 30 years with a 14 percent discount rate?

b. Would the present value of the funds in part a be enough to buy a $2,900 concert ticket?

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a) The cost of a proposed project is $10,000 and has annual cash flows pf $2,900 for six years. a. What is the discounted payback period if the discount rate is 0.5%? b. What is the discounted payback period if the discount rate is 5%? c. What is the discounted payback period if the discount rate is 20%?
Assume that you are valuing an infinitely lived asset that pays $350 at the end of each year. What is the present value of the asset if the opportunity cost of funds is 5%?
You have been offered the opportunity to invest in a project that will pay $1,241 per year at the end of years one through three and $10,926 per year at the end of years four and five. If the appropriate discount rate is 15.9 percent per year, what is the present value of this cash flow pattern?

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Loose Leaf for Foundations of Financial Management Format: Loose-leaf

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