1. A deposit of $7,000 is made on January 1, 2008. The deposit will earn interest at a rate of 8%. How much will be accumulated on January 1, 2013, assuming that interest is compounded (a) annually (b) semiannually (c) quarterly?
US paper currency is made with several features that are difficult to counterfeit, including a security thread, color shifting ink, microprinting, a portrait, a watermark and a fine line printing pattern. As duplication technology continually improves and more and more counterfeits are circulated, what will happen to the followi
10. A real estate investment has the following expected cash flows: Year Cash Flows 1 $10,000 2 25,000 3 50,000 4 35,000 If the discount rate is 8%, what is the investment's present value? $103,7
Prob S. Here are the gasoline sales time series data: Week Sales (1000s of gallons) 1 17 2 21 3 19 4 23 5 18 6 16 7 20 8 18 9 22 10 20 11 15 12 22 1. Use a weight of 1/2 for the most recent observation, 1/3 for the second most recent, and 1/6 for the third most recent to compu
Please help me calculate the present value for the following: $1150 to be received 2 years from now with a 24% interest rate
Mike Polanski is 30 years of age and his salary next year will be $40,000. Mike forecasts that his salary will increase at a steady rate of 5 percent per annum until his retirement at age 60. a. If the discount rate is 8 percent, what is the PV of these future salary payments? b. If Mike saves 5 percent of his salary each ye
If we look at the formula to calculate the dollar amount of a $1 we put into savings today, we see that it is fv = pv*((1+i)^n). The variables are fv = future value, pv = present value, i = interest rate per period, and n = number of periods. In the formula, n is an exponent. What does the exponent in this case tell us we
You are considering expanding your line of equipment and apparel for high school athletic teams to include soccer teams. Based on research conducted by the Marketing department, you estimate an increase in sales for your division of $150,000 per year the first two years, then $250,000 per year over the following three years. In
39. The present value of $30,000 to be received in two years, at 12% compounded annually, is (rounded to nearest dollar) ________. $23,916 $37,632 $23,700 $30,000 40. When the market rate of interest was 11%, Welch Corporation issued $100,000, 8%, 10-year bonds that pay interest semi
I will be needing more information for a topic paper on "The future of American Transportation", with references.
Describe how you would go about analying the future training needs of your current organization.
Question 13: A company anticipates a taxable cash receipt of $70,000 in year 5 of a project. The company's tax rate is 30% and its discount rate is 12%. The present value of this future cash flow is closest to: $23,161 $27,783 $29,039 $33,267.
Need help with Assignment. Pages 61-65 (McNurlin & Sprague, 2004) address the matter of creating a vision. A vision is a statement of how someone wants the future to be or believes it will be. You have been a member of an IS management team that was asked to create a vision for your company. Create and name an imaginary
On a contract, you have a choice of receiving $25,000 six years from now or $50,000 twelve years hence. What is the implied discount rate that equates these two amounts?
1) If you invest today, how much will you have : a. In 2 years at 9%? b. In 7 years at 12%? c. In 25 years at 14%? c. In 25 years at 14% (compound semiannually)? 2) How much would you have to invest today to receive: a. $15,000 in 8 years at 10%? b. $20,000 in 12 years at 13%? c. $6,000 each years for 10 years at 9%?
Sharon Smith will receive $1 million in 50 years. The discount rate is 14. As an alternative, she can receive $2,000 today. Which should she choose? $1 million dollars in 50 years $2,000 today she should be indifferent need more information
Suppose you just inherited a gold mine. This gold mine is believed to have three years worth of gold deposit. Here is how much income this gold mine is projected to bring you each year for the next three years: Year 1: $42,000,000 Year 2: $62,000,000 Year 3: $99,000,000 Compute the present value of this stream of income at
Using a spreadsheet how would I show: What is the present value of $1 million in 30 years (future value) using an interest rate of 5%?
Suppose you borrowed $25,000 at a rate of 8% and must repay it in 4 equal installments at the end of each of the next 4 years. How large would your payments be?
Michael is planning for his son's college education to begin ten years from today. He estimates the yearly tuition, books, and living expenses to be $10,000 per year for a four-year degree. How much must Michael deposit today, at an interest rate of 12 percent, for his son to be able to withdraw $10,000 per year for four years o
You estimate an increase in sales of 150,000 per year for the first two years, then 250,000 per year over the following 3 years. You will need to invest in 300,000 worth of new equipment. What is the time value of money and how does it apply in this situation? What is the weighted average cost of capital and how does it impact t
Calculate the future value of $150,000 fifteen year from today based on the following interest: a. 3% b. 6% c. 9% d. 12% Calculate the present value of $35,000. 20 years from today based on the following annual discount rates: a. 3% b. 6% c. 9% d, 12%
I am doing a research paper on Starbuck's operations and have the following questions: 1. What are the reasons for Starbuck's recent crisis/loss in USA. Explain in detail. 2. What are the future prospects and recommendations for Starbucks?
1) Michelle electrical is evaluating a project which will increase sales by $50,000 and costs by $30,000. The project will cost $150,000 and be depreciated straight-line to a zero book value over the 10 year life of the project. The applicable tax rate is 34%. What is the operating cash flow for this project? 2) Ralph and E
(a) You've inherited $15,000,000 and have decided to use this money to open a shelter for abused women in Aurora one year from today. The annual operating costs are estimated to be $350,000 and are expected to grow at a constant rate of 2% (inflation) starting in year 2. If the interest rate is 4.5%, would you be able to fund th
NOTE: if can be perforned with TI83 Finance (TVM Solver) please provide key strokes steps. 1.) You want to go to grad school 3 years from now, and you can save $5,000 per year, beginning one year from today. You plan to deposit the funds in a mutual fund which you expect to return 9% per year. Under these conditions, how muc
Kuhns Corp. has 200,000 shares of preferred stock outstanding that is cumulative. The dividend is $6.50 per share and has not been paid for 3 years. If Kuhns earned $3 million this year, what could be the maximum payment to the preferred stockholders on a per share basis? a) $19.50 per share b) $15 per share c) $13 per shar
At 12 percent interest, it would take what number of years to double your money, and what number of years to quadruple it. (Round your answer to 2 decimal places, e.g. 32.16.)
You are considering a project with the following cash flows: Year Cash flow 1 5600 2 9000 3 2000 5. What is the present value of these cash flows, given an 11% discount rate? $8,695.61 $8,700.89 $13,732.41 $13,812.03 $19,928.16 6. What is the future value of the fo
1. Toni adds $3,000 to her savings on the first day of each year. Tim adds $3,000 to his savings on the last day of each year. They both earn a 9% rate of return. What is the difference in their savings account balances at the end of thirty years? $35,822.73 $36,803.03 $38,911.21 $39,803.0