Reference no: EM13885311
A friend owes you money. He offers to pay you $1,000 today, $1,000 a year from now and $1,000 exactly two years from now. If 10% is the prevailing rate you expect on your investments, what is the present value of this arrangement? A friend owes you money. He offers to pay you $1,000 today, $1,000 a year from now and $1,000 exactly two years from now. If you can earn a 10% return on your money, how much money will you have on the date of the last payment (after he makes the last payment)?
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Principle plus interest
: You borrowed $25,000 from your parents to buy a car. They want their money back in 5 months with interest at 6% (simple interest rate). What is the total amount you must pay them in 5 months (principle plus interest)?
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How much money will you have on the date of last payment
: A friend owes you money. He offers to pay you $1,000 today, $1,000 a year from now and $1,000 exactly two years from now. If 10% is the prevailing rate you expect on your investments, what is the present value of this arrangement? He offers to pay yo..
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What is the payback period for both projects
: Siva, Inc., imposes a payback cutoff of three years for its international investment projects. Year Cash Flow (A) Cash Flow (B) 0 –$ 57,000 –$ 67,000 1 21,500 13,500 2 25,000 16,500 3 19,500 23,000 4 6,500 227,000 What is the payback period for both ..
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Periodic payments between now and maturity
: You are offered an investment that will pay you $100,000 in five years. There will be no periodic payments between now and maturity. You require a 6% return in order make such investments. You now have all of the variables in order to calculate the _..
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How much money will you have on the date of the last payment
: A friend owes you money. He offers to pay you $1,000 today, $1,000 a year from now and $1,000 exactly two years from now. If 10% is the prevailing rate you expect on your investments, what is the present value of this arrangement? A friend owes you m..
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Pretax cost savings do we require for project to profitable
: A proposed cost-saving device has an installed cost of $630,000. The device will be used in a five-year project but is classified as three-year MACRS property for tax purposes. The required initial net working capital investment is $45,000, the margi..
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What is the amount to use the annual sales figure
: Winnebagel Corp. currently sells 25,000 motor homes per year at $63,000 each, and 9,500 luxury motor coaches per year at $100,000 each. The company wants to introduce a new portable camper to fill out its product line; What is the amount to use as th..
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First determine the tax issue
: First determine the tax issue. Then research the issue and determine your conclusion. Finally, write up your results using the following format: Deducting Charitable Contributions. Your clients, Sonny and his wife Honey, believe in worshiping Ta-Ra,..
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Determine the current value of your total investment
: Determine the current value of your total investment. Do not make any changes to your investment at this time. Calculate your total based on the number of shares and the new price per share, for each company.
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