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- How much must be invested now to receive $50,000 for 8 years if the first $50,000 is received in one year and the rate is 10%?You want to invest $8,000 at an annual Interest rate of 8% that compounds annually for 12 years. Which table will help you determine the value of your account at the end of 12 years? A. future value of one dollar ($1) B. present value of one dollar ($1) C. future value of an ordinary annuity D. present value of an ordinary annuityProject A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?
- How much would you invest today in order to receive $30,000 in each of the following (for further Instructions on present value In Excel, see Appendix C): A. 10 years at 9% B. 8 years at 12% C. 14 years at 15% D. 19 years at 18%Calculate the compounded future value of 20 annual payments of $5,000 each into a savings account that earns 6% per year. All 20 payments are made at the beginning of each year.What is the present value of a perpetuity with payments starting one year from now. The first payment is $25,000. Assume a discount rate of 8%.
- Compute the accumulated value of an annuity immediate that makes semi-annual payments of £500 for 10 years and then it makes annual payments of £1,000 for another 10 years. The annual effective rate is 4%.Assume that you want to have $ 4450 saved in a sinking fund in 1 year. The account pays 2% compounded monthly. What should be your monthly payments?Determine the present value of an annuity due of $5,000 per year for 15 years discounted back to the present at an annual rate of 12 percent. What would be the present value of this annuity due if it were discounted at an annual rate of 15 percent?