What are the correct variables when calculating the future value
of $1000 invested today at 8% in 12 years?What is the future value of this investment?
Present Value of $ 1 at 12% for 8 years = 0.404
Present Value of an annuity at 12% for 8 years = 4.968
Future Value of $1 at 12% for 8 years = 2.476
Future Value of an annuity at 12% for 8 years = 12.3
Vargas Products has settled a lawsuit for patent infringement.
They will receive $60,000 per year for the next 8 years. They
intend to put that money aside for a large R & D...
Present Value of $ 1 at 12% for 8 years = 0.404
Present Value of an annuity at 12% for 8 years = 4.968
Future Value of $1 at 12% for 8 years = 2.476
Future Value of an annuity at 12% for 8 years = 12.3
Vargas Products is considering a capital project. Project A has
net cash inflows of $56,000 annually for 8 years. What is the total
amount they would be willing to invest if their expected...
When you calculate the present value of an asset, for example a
bond, you are calculating _____.
maximum price you would pay for the asset
minimumm price you would pay for the asset
future value of the asset
insurance premiums
What is the present value of a $2,000 payment made in five years
when the discount rate is 9 percent? (Do not round
intermediate calculations. Round your answer to 2 decimal
places.)
Discuss how Excel makes calculating Present Value easier. Give
at least 2 examples of when present value calculations are used
when making financial decisions.
When calculating the free cash flow of a company base on its year
end earning, what kind of assumptions will you use, explain why are
you using those assumptions. (2 paragraphs)
Select the correct option... The present value of a bond that
matures in 5 years can be best described as:
a) The face value of the bond discounted 5 years back to the
current period
b) All coupon payments that will be received over the next 5
years discounted back to the current period
c) The face value of the bond plus all future cash flows from
coupons being received over the coming 5 years discounted back to
the current...
What is the present value of $5,000 received:
a. Twenty years from today when the interest rate is 8% per
year?
b.Ten years from today when the interest rate is 8% per
year?
c.Five years from today when the interest rate is 8% per
year?
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a. Twenty years from today when the interest rate is 8% per
year?The present value of $5,000 received 20 years from today when
the interest rate is 8% per year is $____. (Round to...