Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $200 per year for 14 years at 4%.

   $  

2. $100 per year for 7 years at 2%.

   $  

3. $200 per year for 8 years at 0%.

   $  

4. Rework previous parts assuming they are annuities due.

   Present value of $200 per year for 14 years at 4%: $  

   Present value of $100 per year for 7 years at 2%: $  

   Present value of $200 per year for 8 years at 0%: $  

(a) The S&P/ASX200 price index opened the year at 5,777 and closed at 6,120 by the end of the year. The equivalent accumulation index went from 56,240 to 64,425. What is the annual rate of return on each of these indices? Explain the difference.

(b) Using the approach covered in your textbook calculate the geometric average annual rate of return over five years given the following annual rates, year 1 = 5.10%, year 2 = 4.95%, year 3 = 4.83%, year 4 = 4.75% and year 5 = 4.70% . What is the arithmetic average? Explain the difference.

PRESENT VALUE OF AN ANNUITY

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

1. $700 per year for 16 years at 6%.

   $  

2. $350 per year for 8 years at 3%.

   $  

3. $800 per year for 6 years at 0%.

   $  

   Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

4. $700 per year for 16 years at 6%.

   $  

5. $350 per year for 8 years at 3%.

   $  

6. $800 per year for 6 years at 0%.

   $  

Exact Photo Service purchased a new color printer at the beginning of Year 1 for $38,600. The printer is expected to have a four-year useful life and a $3,400 salvage value. The expected print production is estimated at $1,788,000 pages. Actual print production for the four years was as follows:

The printer was sold at the end of Year 4 for $3,550.

Required
a. Compute the depreciation expense for each of the four years, using double-declining-balance depreciation.

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $700 per year for 16 years at 8%.

   $  

2. $350 per year for 8 years at 4%.

   $  

3. $200 per year for 8 years at 0%.

   $  

4. Rework previous parts assuming they are annuities due.

   Present value of $700 per year for 16 years at 8%: $  

   Present value of $350 per year for 8 years at 4%: $  

   Present value of $200 per year for 8 years at 0%: $  

5.15

PRESENT VALUE OF AN ANNUITY

Find the present values of these ordinary annuities. Discounting occurs once a year. Round your answers to the nearest cent.

1. $600 per year for 16 years at 12%.

   $  

2. $300 per year for 8 years at 6%.

   $  

3. $900 per year for 16 years at 0%.

   $  

   Rework previous parts assuming that they are annuities due. Round your answers to the nearest cent.

4. $600 per year for 16 years at 12%.

   $  

5. $300 per year for 8 years at 6%.

   $  

6. $900 per year for 16 years at 0%.

   $  

Find the present values of these ordinary annuities. Discounting occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.

1. $500 per year for 16 years at 14%.

2. $250 per year for 8 years at 7%.

3. $1,000 per year for 16 years at 0%.

4. Rework previous parts assuming they are annuities due.

   Present value of $500 per year for 16 years at 14%:   

   Present value of $250 per year for 8 years at 7%:

   Present value of $1,000 per year for 16 years at 0%:

Machine X has a first cost of $70,000 and an operating cost of $21,000 in year 1, increasing by $500 per year through year 5 with a salvage value of $13,000. Machine Y has a first cost of $62,000 and an operating cost of $21,000 in year 1, increasing by 3% per year through year 10 with a salvage value of $2000. If the interest rate is i =19% per year, evaluate which machine must you choose on the basis of:

(a) the present worth analysis,

(b) the conventional B/C analysis

(Show me all the steps)