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 12 years at 8%.

   $   

2. $350 per year for 6 years at 4%.

   $   

3. $1,000 per year for 6 years at 0%.

   $   

4. Rework previous parts assuming they are annuities due.

   Present value of $700 per year for 12 years at 8%: $   

   Present value of $350 per year for 6 years at 4%: $   

   Present value of $1,000 per year for 6 years at 0%: $   

Please, if possible, can you explain how to find the answers on the BAII Plus Calculator. Thanks in advance.  

EXERCISE #4: Optional: Put-Call Parity: C – P = S – PV(K), PV(K) = K / (1+r)
A-B. The stock is at 50. One-year interest rates are at 3%.
A. A one-year call struck at 52 trades at $4. What must be the price of a one-year 52 put? $ ...........................................................................

B. A one-year call struck at 50 trades at $5. What must be the price of a one-year 50 put? $ ...........................................................................

C. The stock is at 51. The strike is 55. A one-year call struck at 51 trades at $4. A one-year put struck at 55 trades at 1.38. What must be the interest rate?

...................................................... %

ABC Inc of Portland plans to build a water purification plant overseas. After conducting some study, the following info was gathered:

a. Initial Investment $7,000,000

b. Projected Cash flows: year 1: $850,000, year 2: $975,000, year 3: $1,000,000, year 4: $1,500,000, year 5: $2,000,000, year 6: $3,000,000

c. Cost of capital: 15 percent

Given that info determine the following:

1. NPV and IRR and recommend whether plant should be built or not.

2. the value overseas appreciates by 4 percent per year over the next six years, repeat part 1 and discuss go or no go

Sales for the Forever Young Cosmetics Company (in $ millions) are as follows:

(a) Develop a three-year moving average.

(b) Develop a four-year moving average.

(c) Develop a five-year moving average.

(d) Develop a seven-year rmoving average.

Alpaca Corporation had revenues of $315,000 in its first year of operations. The company has not collected on $20,200 of its sales and still owes $28,300 on $97,500 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $14,000 in salaries. Owners invested $20,500 in the business and $20,500 was borrowed on a five-year note. The company paid $4,900 in interest that was the amount owed for the year, and paid $8,900 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 36%. (Assume taxes are paid in the same year).

Compute the cash balance at the end of the first year for Alpaca Corporation.

Calculate the following: (LG 15-2) a. What is the amount of the annuity purchase required if you wish to receive a fixed payment of $240,000 for 20 years? Assume that the annuity will earn 7 percent per year. b. Calculate the annual cash flows from a $2.5 million, 20-year fixed-payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of the current year. c. Calculate the annual cash flows from a $2.5 million, 20-year fixed-payment annuity earning a guaranteed return of 7 percent per year if payments are to begin at the end of year 6.

PLEASE answer in excel format

7)    On January 1, Tiger Corp. paid $66,000 cash for machinery that was expected to last for 11 years.

a) Is the machinery a current asset or a long-term asset? Why?

b) Give Tiger’s journal entry to record the purchase of the machinery.

c) Give Tiger’s journal entry to record depreciation expense on the machinery for the first year.

d) Give Tiger’s journal entry to record depreciation expense on the machinery for the second year.

e) What is the balance in accumulated depreciation at the end of the first year? At the end of the second year?

f) What is the net (book) value of the machinery at the end of the first year? At the end of the second year? At the end of the 11th year?

A flood control project has construction cost during the first year (i.e. at EOY 1) of $10 million, during the second year of $7 million, and during the third year of $4 million, It is completed at the end of the third year and thereafter incurs an annual operating cost of $170,000 per year. Benefits from the project begin during the fourth year and are valued at $1,300,000 in that year, growing at a 2% rate of increase out to the end of the project life, which is 50 years (i.e., three years of construction, 47 years of operation). Assuming an interest rate of 7%, determine if this is a viable project, that is do the capitalized benefits exceed the capitalized costs?

A research project would require initial investment of 100,000. There are three possible outcomes for this project:

a.) 30% probability that investment yields annual income of 35,000 for six year (starting from year 1 to year six) and zero salvage value
b.) 50% probability that investment yields annual income of 25,000 for six year (starting from year 1 to year six) and zero salvage value
c.) 20% probability of failure that yields zero annual income but salvage value of 75,000 dollar at the end of year 1

Calculate expected Rate of Return for this investment. Explain your work in detail including all the required equations and calculations.