You invest $1,000 today and expect to sell your investment for $2,000 in 10 years.
a. Is this a good deal if the discount rate is 6%?
b. What if the discount rate is 10%?

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a. Is this a good deal if the discount rate is 6%?

To make the decision, we need to find the present value of the investment. ...

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The solution explains the use of present value in evaluating investment decision.

What is the relationship between the PVIFi,n (Table 5-4) and the PVIFAi,n (Table 5-8)? What is the PVIFA10%,10yrs? Add up the values of the PVIF10%,n for n = 1, ..., 10. What is this value? Why do these values have the relationship they do?
Please see the attached Tables

The present worth of $5,000 in year 3, $10,000 in year 5, and $10,000 in year 8 at an interest rate of 12% per year is closest to?
a. 12,100
b. 13,300
c. 14,900
d. 16,200

Please show how answer is obtained
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a. $17,860
b. $15,940
c. $14,240
d. $12,720

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I have several accounting problems that I cannot do. I need help with the formulas for the problems. ex. Jack Hammer invests in a stock that will pay dividends of $2.00 at the end of the first year; $2.20 at the end of the second year; and $2.40 at the end of the third year. Also, he believes that at the end of the third yea

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1. Calculate the presentvalue of a payment of $1,075 you would received for 10 years if the interest rate is 5%.
Presentvalue $
2. Calculate the presentvalue of a payment of $875 you would received for 15 years if the interest rate is 5%.
Presentvalue $
3. Calculate the presentvalue of a payment of $1,

Assume the required rate of return increases to 20%. The net presentvalue of the investment would
a. increase
b. decrease
c. stay the same
d. become negative
e. both "b" and "d", above.