MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
4th Edition
ISBN: 9781323478684
Author: Braun
Publisher: PEARSON
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 12, Problem 12.26AE
1.
To determine
The future value of investment of $4,000 every year for six years from now at the interest rate of 10%.
2.
To determine
Invest now the amount which will be able to withdraw $6,000 at the end of every year for the next 20 years at the interest rate of 12%.
3.
To determine
The investment today to have $160,000 at seven years from now at the interest of 6%.
4.
To determine
Future value of investment of $2,000 at the end of every year for the next 10 years at interest rate of 12%.
5.
To determine
The amount of yearly investment at the interest rate of 6% to get $51,000 after 4 years from now.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Lynch Pin in Learning is considering investing $411,000 in equipment to expand their operation. They anticipate this investment will save them $68,500 per year for each of the 8 years of its useful life.What will be the payback for this investment?
Amount Invested
/
Expected annual net cash inflow
=
Payback (Years)
/
=
Please show in excel 2. Suppose another graduating student also has a financial plan with regard to starting his business. He intends to borrow $25,000 from his family and friends at the end of this year to start his business. He believes his business will earn $5000 after expenses one year after it begins, another $7000 after expenses the following year, $10,000 after expenses in each of the next , two years, and $3000 in the last year before it closes. Using a 4% annual interest discount rate, determine the net present value of this investment.
3. You have just received an email inviting you to accept a new credit card that offers you a $12,000 credit limit based upon your FICO score. You realize you can use that card now to charge your long overdue upscale vacation, which will cost $7500. The introductory terms of your new card indicates that no payment is due for the next two years, and the amount due will be charged a low 3% every month until you repay. Assuming you wait the full…
Please refer to the formulas in the lesson and on the following website. Pay particular attention to the examples. Scroll to the bottom to review a table with a list of various formula arrangements that may be helpful in completing this assignment.
1) If you deposit $4,000 today in a bank account and the interest is compounded annually at 10 percent, what will be the value of this investment: a. five years from now? b. ten years from now? c. fifteen years from now? d. twenty years from now?
2) If a business manager deposits $12,000 in a savings account at the end of each year for twenty years, what will be the value of her investment: a. at a compounded rate of 12 percent? b. at a compounded rate of 18 percent?
3) The chief financial officer of a home health agency needs to determine the present value of a $60,000 investment received at the end of year 15. What is the present value if the discount rate is 5%?
4) After completing her residency, an obstetrician plans to invest $9,000…
Chapter 12 Solutions
MANAGERIAL ACCT (LL) W/ ACCESS CODE >C
Ch. 12 - Prob. 1QCCh. 12 - (Learning Objective 2) After identifying potential...Ch. 12 - Prob. 3QCCh. 12 - Prob. 4QCCh. 12 - Prob. 5QCCh. 12 - Prob. 6QCCh. 12 - Prob. 7QCCh. 12 - Prob. 8QCCh. 12 - Prob. 9QCCh. 12 - (Learning Objective 5) Which of the following...
Ch. 12 - Order the capital budgeting process (Learning...Ch. 12 - Prob. 12.2SECh. 12 - Prob. 12.3SECh. 12 - Prob. 12.4SECh. 12 - Prob. 12.5SECh. 12 - Prob. 12.6SECh. 12 - Prob. 12.7SECh. 12 - Prob. 12.8SECh. 12 - Prob. 12.9SECh. 12 - Prob. 12.10SECh. 12 - Prob. 12.11SECh. 12 - Prob. 12.12SECh. 12 - Prob. 12.13SECh. 12 - Prob. 12.14SECh. 12 - Prob. 12.15SECh. 12 - Identify ethical standards violated (Learning...Ch. 12 - Prob. 12.17AECh. 12 - Compute payback period and analyze changes...Ch. 12 - Prob. 12.19AECh. 12 - Prob. 12.20AECh. 12 - Prob. 12.21AECh. 12 - Prob. 12.22AECh. 12 - Calculate the payback and NPV for a sustainable...Ch. 12 - Prob. 12.24AECh. 12 - Prob. 12.25AECh. 12 - Prob. 12.26AECh. 12 - Prob. 12.27AECh. 12 - Prob. 12.28AECh. 12 - Prob. 12.29AECh. 12 - Prob. 12.30AECh. 12 - Prob. 12.31AECh. 12 - Prob. 12.32AECh. 12 - Prob. 12.33AECh. 12 - Prob. 12.34AECh. 12 - Prob. 12.35AECh. 12 - Prob. 12.36BECh. 12 - Prob. 12.37BECh. 12 - Prob. 12.38BECh. 12 - Prob. 12.39BECh. 12 - Prob. 12.40BECh. 12 - Prob. 12.41BECh. 12 - Prob. 12.42BECh. 12 - Prob. 12.43BECh. 12 - Prob. 12.44BECh. 12 - Prob. 12.45BECh. 12 - Prob. 12.46BECh. 12 - Prob. 12.47BECh. 12 - Prob. 12.48BECh. 12 - Prob. 12.49BECh. 12 - Prob. 12.50BECh. 12 - Prob. 12.51BECh. 12 - Prob. 12.52BECh. 12 - Prob. 12.53BECh. 12 - Prob. 12.54BECh. 12 - Prob. 12.55APCh. 12 - Prob. 12.56APCh. 12 - Prob. 12.57APCh. 12 - Prob. 12.58APCh. 12 - Prob. 12.59BPCh. 12 - Prob. 12.60BPCh. 12 - Evaluate an investment using all four methods...Ch. 12 - Prob. 12.62BPCh. 12 - Prob. 12.63SCCh. 12 - Discussion Questions 1. Describe the capital...Ch. 12 - Prob. 12.65ACTCh. 12 - Prob. 12.66ACTCh. 12 - Prob. 12.67ACT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- It is likely that your college tuition will increase an average of 8% per year for the next 4 years. The annual cost of tuition at the beginning of your freshman year in college will be $12,000 (A1). How much money will you and your parents have to deposit in a mutual fund account one year prior to your freshman year to pay for your tuition for the 4 years you will spend earning your degree in engineering? The mutual fund will earn an average of 5% annual interest. Draw a cash flow diagramarrow_forwardTOPIC: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. What is the future worth of a series of equal yearly deposits of Php 100,000 for 8 years in a savings account that earns 6% annual compound interest if (a) all deposits are made at the end of each year? and (b) all deposits are made at the beginning of each year?arrow_forwardAfter completing successfully your FIN203 course, you have been asked by many of your family and friends about financial matters. You are trying your best to advise them. a) Your grandmother has been asked to invest in a product that offers to double her money in 3 years. Indicate the annual rate of return she is being offered b) Your parents have $5,000.00 to deposit. Alpha Bank offers 2 percent per year compounded monthly. Bravo Bank offers 2 percent compounded annually. Compute the amount of deposit after being kept 10 years at each bank. Explain the difference between the two (2) future values. c) Your best friend is saving $1,800.00 and will earn 0.17 percent per month. Determine the number of months until the account grows to $2,000.00. d) Your cousin plans to expand his business and will require $100,000.00 in 6.5 years. The rate of return will be 0.70 percent per month for the first two years. It will go up to 1.00 percent for the rest of the period. Compute the $ amount to set…arrow_forward
- You estimate that you will need $10,000 for education in 8 years. How much must you put away at the end of each year at 6 percent interest to have the college money ready? Show Time value of money imputsarrow_forwardSUBJECT: ENGINEERING ECONOMICS INSTRUCTION: Answer the following questions by including the appropriate cash flow diagrams, solution, and final answer. 1. You are planning to save enough money to buy a brand new car five years from now. You are setting a budget of Php 1,000,000 for this purchase. Your plan is to accumulate the amount by making three savings deposits at an interest rate of 10%. Deposit 1: Deposit Php 100,000 today, Deposit 2: Deposit Php 150,000 two years from now, Deposit 3: Deposit an amount Php X three years from now. How much do you need to invest in year three to ensure that you have the necessary fund to buy the new car at the end of year five?arrow_forwardAnswer the following question with a clear explanation, showing any steps or processes used to reach the answer. Explain your process as though you are teaching the concept to a student who is a beginner at finance.A corporation makes an investment of $20,000 that will provide the following cash flows after the corresponding amounts of time:Year 1 - $10,000Year 2 - $10,000Year 3 - $2,000Should the company make this investment?* What is the net present value at a 7 percent discount rate? Round your answer to two decimal points. Provide a step-by-step explanation for how you arrived at your solution as though you were teaching a student to solve this type of problem.*arrow_forward
- Solve each of the following questions using both pricing formulas and Excel. 1. If you wish to accumulate $150,000 in 10 years, how much must you deposit today in a bank account that pays an annual interest rate of 12%?arrow_forwardDetermining future value David is entering high school and is determined to save money for college. David feels he can save $6,000 each year for the next four years from his part-time job. If David is able to invest at 7%, how much will he have when he starts college?arrow_forwardA civil engineer starts investing his money when he graduates from college. He is able to afford investing $10,000 a year from the time he graduates in four years until the end of eight years. He also plans to increase his investment an additional $2,500 per year increasing by $2,500 every year until year eight. Use the interest rate 10%. a. draw the cash flow diagrams for the above cash flows b. how much will the civil engineer have saved by the end of year eight c. what is its present worth on the year he started collegearrow_forward
- Engineering Economy Question is image To fund their child's college expenses, a family plans to invest $540 to a bank account at the end of this year. They will invest for the next 10 years and increase investment amount by 12% each year. What is the approximate total amount at the end of the planning horizon if the interest rate is 25%?arrow_forwardProblem #1AA parent is now planning a savings program to put a daughter through college. She is 13 and plans to enroll in college in 5 years, and she should graduate 4 years later. Currently, the annual cost for college is $15,000 and is expected to increase 4% each year. The college requires that the costs be paid at the start (hint: beginning) of each year. The child now has $7,500 saved for college in an account and is expected to have a return of 6% annually. The parent will make five equal payments starting today and where the fifth and final payment will be one year before she starts college and will make no more additional payments. How much must each of the payments be to fully fund the college cost? Answer the following questions:1. What is the expected cost of college in each of the 4 years?2. How much will need to be in the account before the first payment to fully pay for college?3. How much will the initial savings grow to before the first payment is due?4. How much of a…arrow_forwardProblem #1AA parent is now planning a savings program to put a daughter through college. She is 13 and plans to enroll in college in 5 years, and she should graduate 4 years later. Currently, the annual cost for college is $15,000 and is expected to increase 4% each year. The college requires that the costs be paid at the start (hint: beginning) of each year. The child now has $7,500 saved for college in an account and is expected to have a return of 6% annually. The parent will make five equal payments starting today and where the fifth and final payment will be one year before she starts college and will make no more additional payments. How much must each of the payments be to fully fund the college cost?2. How much will need to be in the account before the first payment to fully pay for college?3. How much will the initial savings grow to before the first payment is due?4. How much of a gap that will need to be funded?5. What will the required payment need to be to fully fund the…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning