Financial Pre-Test Problems
Not what you're looking for?
I am looking for the way to solve these by hand and in Excel, and also the proper answer:
1. Suppose that the following cash flows are received:
0 = -$500, 1 = $200, 2 = $200, 3 = $200
The Internal Rate of Return on the cash flows (rounded to the nearest percent) is
8%, 9%, 10%, 11%, or 12%
2. A 10-year bond paying 8% annual coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell (rounded to the nearest cent) for
$1000.00
$1210.45
$987.48
$1070.24
3. The annual revenue-growth rates for a new tech star tup during its first 4 years of operations were as follows:
1 = 50, 2 = 50, 3 = -50, 4 = -50
Rounded to the nearest tenth of one percent, the start up's 4-year Compound Annual Growth Rate was
-13.4% or -10.5%
4. Last year, a barber shop generated $100,000 in profit. Assume that the shop's profits grow at 5% per year and that cash flows are discounted at 10% per year. If profits are received at the end of each year, what is the present value of all the shop's future profits?
$2,100,000
$3,000,000
Purchase this Solution
Solution Summary
Financial pre test problems for cash flows received are given.
Solution Preview
See the attached file for proper formatting. Thanks
I am looking for the way to solve these by hand and in Excel, and also the proper answer:
1. Suppose that the following cash flows are received:
0 = -$500, 1 = $200, 2 = $200, 3 = $200
The Internal Rate of Return on the cash flows (rounded to the nearest percent) is
8%, 9%, 10%, 11%, or 12%
Solution
Year Cash Flow
0 ($500)
1 $200
2 $200
3 $200 ...
Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance
This quiz test introductory finance topics.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Motivation
This tests some key elements of major motivation theories.