HW Assignment 4-1
docx
School
Virginia Western Community College *
*We aren’t endorsed by this school
Course
301
Subject
Finance
Date
Apr 3, 2024
Type
docx
Pages
3
Uploaded by PresidentBraveryOryx
ENMA 302
Gavin C.
Homework Assignment 4
Question 1 (1pt.)
:
How much must be deposited now at 4 ½% interest to produce $300 at the end of every year for 10 years?
Question 2 (2pts.)
:
In the table below, the cash flows have a combined Present Value of 0. The first three cash flows occur at the end of periods 1, 2, & 3. If the interest rate is 8%, what is the value each of the uniform cash flows at the end of periods 6, 7 & 8?
Year
Cash Flow
1
100
2
100
3
100
4
0
5
0
6
?
7
?
8
?
1
2
3
4
5
6
7
8
100
100
100
Question 3 (2pts.)
:
A new car can be purchased for a down payment of $5,000 and 60 monthly payments of $280. If the interest rate is 12% compounded monthly, what is the price of the car (including the cost of the interest payments)?
ENMA 302
Gavin C.
Question 4 (2pts.)
:
An insurance annuity will pay $50 in two (2) years, $100 in three (3) years and $150 in four (4) years. What is the value of the annuity today if the interest rate is 10%?
Question 5 (2pts.)
:
A series of cash flows will occur in sequence as follows: present time, $100, the end of one (1) year, $150, the end of two (2) years, $200, the end of three (3) years, $250. Compute
the present value of the cash flows using an interest rate of 8%.
Question 6 (3pts.)
:
A series of cash flows begins at $12,675 the first year, with an increase each year until n=10. If the interest rate is 12.675%, what is the present value when the annual increase is $1,268?
Question 7 (3pts.)
:
A series of cash flows begins at $7,125 the first year, with an increase each year until n=10. If the interest rate is 7.125%, what is the present value when the annual increase is
7.125%?
Question 8 (1pt.)
:
The Central Bank pays 7% annual interest, compounded daily
on savings accounts. What is the effective annual rate?
Question 9 (1pt.)
:
A bank pays 12% nominal interest on special three-year certificates. What is the effective annual rate if interest is compounded continuously?
Question 10 (2pts.)
:
After reading Integrative Case 1
(page 154 – 157), answer the following questions:
a.
What is the firm’s year-over-year growth in terms of total assets?
b.
How much debt reduction did the firm achieve from 2008 to 2009?
ENMA 302
Gavin C.
c.
How does the firm’s P/E ratio compare to the industry average?
Question 11 (1pt.)
:
What is the definition of the time value of money
as given in the textbook?
a.
Money that a firm has in its possession today is more valuable than money in the future because the money it has now can be invested and earn positive returns.
b.
The amount of money earned in interest as a function of time, based on the number of compounding periods under analysis.
c.
Inflation causes money to become less valuable with time due to economic phenomena as originally described by John Locke.
d.
I did not order the textbook like I was supposed to and/or didn’t do the reading assignment.
Question 12 (1pt.)
:
Which of the following are examples of financial analyses
?
a.
PV, FV, i, G, A, and n
b.
Horizontal and Vertical
c.
Micro and Macro
d.
Internal Rate of Return, Net Present Value, Incremental Rate of Return, Cost-Benefit Ratio, Equivalent Uniform Annual Worth, Payback Period
e.
Capital Expenditures, Operating Expenses, Sunk Costs, Opportunity Costs,
and Bond Leveraging
Question 13 (1pt.)
:
True or False: It is very likely you will get caught if you plagiarize during this course.
TEXTBOOK REVIEW QUESTIONS (1pt. each)
:
Answer Review Questions: 2-13, 2-14, and 2-15 (p. 69)
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
Consider the following cash flows:
Year
Cash Flow
2
$
22,800
3
40,800
5
58,800
Assume an interest rate of 9.6 percent per year.
a.
If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b.
If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
arrow_forward
Intro
You expect to receive two cash flows: $9,000 paid after
3 years and $18,000 paid after 6 years. The annual
interest rate is 8%.
Part 1
What is the present value of the combined cash flows?
0+ decimals
Submit
arrow_forward
Question 7: For the cash flows below, find the value of x that makes the equivalent annual
worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year.
Year
0
1
2
3
Answer: $619.88
Cash Flow,$
200
200
200
200
Year
4
5
6
7
Cash Flow, $
X
200
200
200
arrow_forward
What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually?
End of Year 1 $5,100
End of Year 2 $2,300
End of Year 3 $1,150
Select one:
a.
$8,550
b.
$9,966
c.
$9,851
d.
$9,581
arrow_forward
Given the following cash flows, what is the future value if the interest rate is 5%?
Year
1
2
3
Cash Flow
$400
$650
$900
a.
$2,053.46
b.
$1,676.24
c.
$2,023.50
d.
$1,798.70
arrow_forward
Suppose you are given the following cash flow stream. If the interest rate is 20 percent, what
is the future value of this cash flow stream at the end of Year 3?
Year CF
10
$0
1
$344
2
$314
3
$290
Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.
arrow_forward
Write by hand please answer ASAP
arrow_forward
Intro
You expect to receive two cash flows: $31,000 paid in 5
years and $46,500 paid in 10 years. You'll put the money
into a savings account with an annual interest rate of
8%.
Part 1
What is the future value of the combined cash flows, in
15 years?
0+ decimals
Submit
arrow_forward
At a 10% interest rate, what is the future sum at year 5, that is equivalent to the series
of payments in the given cashflow:
Year 1 Year 2
$1,400
$7,660
$7,616
$7,212
$1.320
$5,995
Year 3
$1,240
Year 4
$1,190
Year 5
$1,000
arrow_forward
Bha
arrow_forward
Suppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What would be the value of the cashflows at year 2 at a 5% annual interest rate? MUST SHOW FULL WORK (NO EXCELL)
a.
38.3458
b.
50.3458
c.
42.0000
d.
12.0000
e.
49.3621
arrow_forward
Problem #1: For the following cash flows, (receipt of 10,000 at t=0; payment of 15,000 at t=1; receipt
of 12,000 at t=2; and receipt of 12,000 at t-6), various interest rates are applied: 3% for year 1; 4%
for year 2, 5% for years 3 and 4, and 6% for years 5 and 6. Find the equivalent net value at t=5, i.e.,
Fs=?
10,000
12,000
3% 4% 5%
0 1 2
I
15,000
F₂-?
I 12,000
5% 6% 6%
m
arrow_forward
QUESTION 4
For the cash flow given below, the annual uniform deposit (A) that yields an equal blance by the end of n =8 years is
closest to:
i= 12%
3
411
n-1
$500
$700
$900
$1100
A
arrow_forward
kk.2
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you
Related Questions
- Consider the following cash flows: Year Cash Flow 2 $ 22,800 3 40,800 5 58,800 Assume an interest rate of 9.6 percent per year. a. If today is Year 0, what is the future value of the cash flows five years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. If today is Year 0, what is the future value of the cash flows ten years from now? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)arrow_forwardIntro You expect to receive two cash flows: $9,000 paid after 3 years and $18,000 paid after 6 years. The annual interest rate is 8%. Part 1 What is the present value of the combined cash flows? 0+ decimals Submitarrow_forwardQuestion 7: For the cash flows below, find the value of x that makes the equivalent annual worth in years 1 through 7 equal to $300 per year. Use an interest rate of 10% per year. Year 0 1 2 3 Answer: $619.88 Cash Flow,$ 200 200 200 200 Year 4 5 6 7 Cash Flow, $ X 200 200 200arrow_forward
- What is the future value at the end of year three of the following set of cash flows at an interest rate of 10% p.a. compounded annually? End of Year 1 $5,100 End of Year 2 $2,300 End of Year 3 $1,150 Select one: a. $8,550 b. $9,966 c. $9,851 d. $9,581arrow_forwardGiven the following cash flows, what is the future value if the interest rate is 5%? Year 1 2 3 Cash Flow $400 $650 $900 a. $2,053.46 b. $1,676.24 c. $2,023.50 d. $1,798.70arrow_forwardSuppose you are given the following cash flow stream. If the interest rate is 20 percent, what is the future value of this cash flow stream at the end of Year 3? Year CF 10 $0 1 $344 2 $314 3 $290 Enter your answer rounded off to two decimal places. Do not enter $ in the answer box.arrow_forward
- Write by hand please answer ASAParrow_forwardIntro You expect to receive two cash flows: $31,000 paid in 5 years and $46,500 paid in 10 years. You'll put the money into a savings account with an annual interest rate of 8%. Part 1 What is the future value of the combined cash flows, in 15 years? 0+ decimals Submitarrow_forwardAt a 10% interest rate, what is the future sum at year 5, that is equivalent to the series of payments in the given cashflow: Year 1 Year 2 $1,400 $7,660 $7,616 $7,212 $1.320 $5,995 Year 3 $1,240 Year 4 $1,190 Year 5 $1,000arrow_forward
- Bhaarrow_forwardSuppose you receive cashflows of $10 at year 1, $12 at year 2, $14 at year 3 and $16 at year 4. What would be the value of the cashflows at year 2 at a 5% annual interest rate? MUST SHOW FULL WORK (NO EXCELL) a. 38.3458 b. 50.3458 c. 42.0000 d. 12.0000 e. 49.3621arrow_forwardProblem #1: For the following cash flows, (receipt of 10,000 at t=0; payment of 15,000 at t=1; receipt of 12,000 at t=2; and receipt of 12,000 at t-6), various interest rates are applied: 3% for year 1; 4% for year 2, 5% for years 3 and 4, and 6% for years 5 and 6. Find the equivalent net value at t=5, i.e., Fs=? 10,000 12,000 3% 4% 5% 0 1 2 I 15,000 F₂-? I 12,000 5% 6% 6% marrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you