In: Finance
Using the information provided in the following table, find the value of each asset:
The value of Asset A is
The value of Asset B
The value of Asset C
The value of Asset D
The value of Asset E
Asset 
End of Year 
Amount 
Appropriate required return 

A 
1 
$ 
7,000 
8% 
2 
7,000 

3 
7,000 

B 
1 through∞ 
$ 
500 
4% 
C 
1 
$ 
0 
5% 
2 
0 

3 
0 

4 
0 

5 
48,000 

D 
1 through 5 
$ 
1,200 
4% 
6 
8,200 

E 
1 
$ 
3,000 
7% 
Value of Asset A = Cash Flow * Present value of discounting factor ( Rate, Time)
= $ 7000 * 1/(1.08) ^ 1 +$ 7000 * 1/(1.08) ^2+$ 7000 * 1/(1.08) ^ 3
= $ 18,039.68
Hence the correct answer is $ 18,039.68

Value of Asset B = Cash Flow / Rate of Interest
= $ 500 / 4%
= $ 12,500
Hence the correct answer is $ 12,500

Value of Asset C= Cash Flow * Present value of discounting factor ( Rate, Time)
= $ 48,000 * 1/(1.05) ^ 5
= $ 37,609.26
Hence the correct answer is $ 37,609.26

Value of Asset D= Cash Flow * Present value of discounting factor ( Rate, Time)
= $ 1200 * 1/(1.04) ^ 1 + $ 1200 * 1/(1.04) ^2+$ 1200 * 1/(1.04) ^3+$ 1200 * 1/(1.04) ^4+$ 1200 * 1/(1.04) ^5+$ 8200 * 1/(1.04) ^6
= $ 11,822.77
Hence the correct answer is $ 11,822.77

Value of Asset E= Cash Flow * Present value of discounting factor ( Rate, Time)
= $ 3,000 * 1/(1.07) ^ 1
= $ 2803.74
Hence the correct answer is $ 2,803.74