What is the present value of investment

Assignment Help Accounting Basics
Reference no: EM131015306

Problem 1:

Paltrow Company made an investment in another that guarantees cash flow $ 22,500 each year for the next five years. If the company uses a discount rate of 15% on their investments, what is the present value of this investment?

Problem 2:

The company Argentinian Grill has a 7-year loan $ 23.500 with the local bank. His plan is to start paying the loan in seven equal installments starting today. If the interest rate
It is 8.4%, calculates the annuity payment.

Problem 3:

You currently have 25 and want to retire at the age of 65. As a complement to other sources of retirement, you could deposit $ 3,000 at the end of each year in an IRA. This financial instrument would earn 9.75% over the next 40 years.

a) How much money will accumulate at the end when you turn 65?

Problem 4:

Solve each situation separately, where P = principal; r = interest rate; t = time in years; I = interest and future value FV =

A) P = $ 10.800; r = 6.50%; t = 7 years; I =?

B) I = $ 1.550; t = 11 months r = 7.75%; P =?

C) P = $ 30.500; r = 6.75%; t = 10; VF =

D) FV = $ 320,000; r = 5.40% compounded monthly; t = 30; P =?

b) If you decide to wait 10 years to begin to deposit, how much money will accumulate to reach age 65?

c) Discuss the impact of waiting 10 years on the accumulated amount.

Problem 5:

You want to start a bakery business. For this, you will need a capital of $ 75,000 to start operating. If you have to operate within four years. What sum must now invest 12% quarterly composite, the amount needed to keep and operate your business?

Reference no: EM131015306

Questions Cloud

Compute the share price of firm : Compute the cash flows of the project in the first year and in the years, if g is equal to the break-even sales growth rate - Estimate a valuation range for the share price of Firm B.
Degree of fluctuation against the dollar : Probability Distribution of Financing Costs. Space Corporation, a U.S. corporation, decides to borrow Euro for one year. The interest rate on the borrowed euro is 6 percent. Space has developed the following probability distribution for the euro's..
Explain the pathophysiology of the respiratory alteration : A description of the disorder (Croup) and underlying respiratory alteration associated with the type of cough in your selected scenario. Then, explain the pathophysiology of the respiratory alteration (croup/ acute laryngotracheobronchitis)
Identify the nutritional needs for a developing embryo : Identify health concerns or disease associated with poor nutrition during the gestation period.
What is the present value of investment : Paltrow Company made an investment in another that guarantees cash flow $ 22,500 each year for the next five years. If the company uses a discount rate of 15% on their investments, what is the present value of this investment?
Write the paper is about carbon fiber growth : Write the paper is about "Carbon fiber growth"
Payback npv and mirr : Your Division is considering two investment projects each of which requires an up front expenditure of $25 million. You estimate that the cost of capital is 10% and that the investments will produce the following after tax cash flows (in millions ..
Does claimed performance violate principles of hermodynamics : A patent application describes a device that at steady state receives a heat transfer at the rate 1 kW at a temperature of 167°C and generates electricity. There are no other energy transfers. Does the claimed performance violate any principles of..
We are even on the cusp of a 6th mass extinction event : Ensure that each of the questions or topics listed above are addressed with accurate information. Grammar, spelling and syntax are correct.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Consider the task of scheduling five jobs abcd and e which

consider the task of scheduling five jobs abcd and e which needs 5423 and 3 hours respectively on machine 1 and 3144

  Find an industry that generates by-products as a result of

find an industry that generates by-products as a result of creating a main product. identify what unique accounting

  Question-federal tax payable-jeb corporation limited

Jeb Corporation Limited (JEB), a Canadian incorporated company, operates a retail chain of computer supplies stores in Canada and abroad.

  A firm has a balance in its account receivable account and

a firm has a balance in its account receivable account and decides to sell the receivables to a factos without

  Provide three examples of the use of an intranet

What is an intranet? Provide three examples of the use of an intranet.

  Maturity risk premium the real risk-free rate is 3 and

maturity risk premium. the real risk-free rate is 3 and inflation is expected to be 3 for the next 2 years. a 2-year

  Examine the following book-value bal sheet for university

examine the following book-value bal. sheet for university products inc. the preferred stock currently sells for 12.00

  Prepare a statement of cash flows for 2010

Prepare a statement of cash flows for 2010 for Sondergaard Corporation. (List multiple entries from the largest positive to the smallest positive amount followed by the most negative to the least negative amount,

  Black tool company has a production capacity of 1500 units

1.dougherty company employs 20 individuals. eight employees are paid 12 per hour and the rest are salaried employees

  Harrisburg company which began business in early 20x7

harrisburg company which began business in early 20x7 reported 40000 of accounts receivable on the december 31 20x7

  What is meant by the research practice-gap in accounting

What is meant by the research practice-gap in accounting? Why is the research practice-gap in management accounting a concern? Who is concerned about the gap?

  The sales revenue generated throughoutnbsp the normal

the sales revenue generated throughoutnbsp the normal course of business would be an example of which type of business

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd