# Calculating NPV, capital structure, current ratio

See attached Excel file.

SHOW YOUR WORK in order to get part credit if your answer is wrong on problems

1 Whats the PV of \$5000 received 5 years from now; your personal investment
track record is 10%

2 Whats the annual payment required on a 3 year \$20,000 auto loan which has a
15% stated interest rate

3 Whats the net present value of a project which requires \$100,000 investment and
generates \$26,000/yr in financial benefits; your compamies discount rate is 10%
The project will last 4 years

4 What does "capital structure" refer to and why are decisions about it important to
a firms CFO

5 What is the current ratio for a firm with the following balance sheet

Assets Liabilities & Owners Equity

cash 1000 a/payable 5000
a/r 2000 mortgage payable 5000
inventory 3000

equipment 4000 owners equity 10000
bldg 10000

This question has the following supporting file(s):

• practice exercises.xls
\$2.19
###### This answer includes:
• Plain text
• Cited sources when necessary
• Attached file(s)
• 198544.xls
Add to Cart   \$2.19

Extracted Content from Question Files:

• practice exercises.xls

SHOW YOUR WORK in order to get part credit if your answer is wrong on problems

1 Whats the PV of \$5000 received 5 years from now; your personal investment
track record is 10%

2 Whats the annual payment required on a 3 year \$20,000 auto loan which has a
15% stated interest rate

3 Whats the net present value of a project which requires \$100,000 investment and
generates \$26,000/yr in financial benefits; your compamies discount rate is 10%
The project will last 4 years

4 What does "capital structure" refer to and why are decisions about it important to
a firms CFO

5 What is the current ratio for a firm with the following balance sheet

Assets Liabilities & Owners Equity

cash 1000 a/payable 5000
a/r 2000 mortgage payable 5000
inventory 3000

equipment 4000 owners equity 10000
bldg 10000