The interest rate for all problems is 7% I need help with #8-10 and #13 -15. Question 8 is asking to solve for the monthly payment#9 is asking to solve for amount of annual payment#10 is asking for net present value of the cash flows Calculate for the cells highlighted in yellow Time Value of Money problems For these problems where interest rate is needed use:7% Amount of investment: $ 5,000 Number of years to maturity: 10 #1Amount to be received at maturity: Amount of loan: $ 10,000 Life of loan (years): 15 #2Annual payment #3Amount of principal in first payment #4Amount of principal in last payment Future value $ 25,000 Maturity in years: 20 #5Present value Amount of investment: $ 500 Number of years to maturity: 15 Amount to be received at maturity: $ 2,500 #6Rate of return: Annual investment $ 2,500 Life of investment (years) 10 #7Future value Price of car $ 12,000 Down payment20% Life of loan (years) 3 #8Monthly payment Amount to be received at maturity $ 25,000 Number of years $ 10 #9Amount of annual payment Year:012345 Cash flows $ (10,000)25002500250025002500 #10Net present value: Additional problems: YEAR123 Income Statement Tax rate:30% #11Sales 65,000 76,700 Cost of Goods Sold 40,000 #12Gross Profit Selling, General, & Administrative Expense 12,500 Depreciation 1,750 Income before Tax (14,250) #13Tax Expense #14Net Income #15Gross Profit Margin #16Amount Depreciation Expense reduces Cash

The present value is the value of the sum received at time 0 or the current period. It is the value…

Answered: #8 Monthly payment…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter12: Capital Investment Analysis

Section: Chapter Questions

Problem 19E

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The interest rate for all problems is 7% I need help with #8-10 and #13 -15.

Question 8 is asking to solve for the monthly payment

#9 is asking to solve for amount of annual payment

#10 is asking for net present value of the cash flows

	Calculate for the cells highlighted in yellow
	Time Value of Money problems
	For these problems where interest rate is needed use:	7%
	Amount of investment:	$ 5,000
	Number of years to maturity:	10
#1	Amount to be received at maturity:

	Amount of loan:	$ 10,000
	Life of loan (years):	15
#2	Annual payment
#3	Amount of principal in first payment
#4	Amount of principal in last payment

	Future value	$ 25,000
	Maturity in years:	20
#5	Present value

	Amount of investment:	$ 500
	Number of years to maturity:	15
	Amount to be received at maturity:	$ 2,500
#6	Rate of return:

	Annual investment	$ 2,500
	Life of investment (years)	10
#7	Future value

	Price of car	$ 12,000
	Down payment	20%
	Life of loan (years)	3
#8	Monthly payment

	Amount to be received at maturity	$ 25,000
	Number of years	$ 10
#9	Amount of annual payment

	Year:	0	1	2	3	4	5
	Cash flows	$ (10,000)	2500	2500	2500	2500	2500

#10	Net present value:

	Additional problems:
	YEAR	1	2	3
	Income Statement
	Tax rate:	30%
#11	Sales	65,000	76,700
	Cost of Goods Sold	40,000
#12	Gross Profit
	Selling, General, & Administrative Expense	12,500
	Depreciation	1,750
	Income before Tax	(14,250)

#13	Tax Expense

#14	Net Income

#15	Gross Profit Margin

#16	Amount Depreciation Expense reduces Cash

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