What is the present value to be received in four years

Assignment Help Financial Accounting
Reference no: EM132998130

Assume that you are nearing graduation and have applied for a job with a local bank. As part of the bank's evaluation process, you have been asked to take an examination that covers several financial analysis techniques. The first section of the test addresses time value of money analysis. See how you would do by answering the following questions.

Problem 1: Draw time lines for (a) a $2000 lump sum cash flow at the end of year 4, (b) an ordinary annuity of $1000 per year for 5 years, and (c) an uneven cash flow stream of -$450, $1000, $650, $850 and $500 at the end of years 0 through 4.

Problem 2: What is the future value of an initial $1000 after 5 years if it is invested in an account paying 5% annual interest?

Problem 3: What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%?

Reference no: EM132998130

Questions Cloud

Which one of best describes statement of financial position : Which one of the best describes the statement of financial position? Despite a better statement of financial position and a renaissance in the laboratories
What is the annual interest expense for the borrower : Construct an amortization schedule for a $1,000, 12% annual rate loan with 4 equal installments. What is the annual interest expense for the borrower
What you mean by human needs : Describe the indicators of abuse and/or neglect to one of the main categories of abuse and Demonstrate knowledge of essential support practices for people
What is the future value of a five-year ordinary annuity : What is the future value of a 5-year ordinary annuity of $1000 if the appropriate interest rate is 5%? What is the present value of the annuity?
What is the present value to be received in four years : Assume that you are nearing graduation, What is the present value of $1000 to be received in 4 years if the appropriate interest rate is 5%?
Identification of property : Write this entire memo so that it has a better subject line and begins with the main point. Be sure to use a clear style and good layout, too.
Project - SKIN CANCER DETECTION : Assignment - Project - SKIN CANCER DETECTION - conduct a thorough literature review on related works and present your findings in the written report
Develop a detailed brief explaining the stages of exporting : You are the new exports manager of a Canadian shoe manufacturing company - Getty shoes, that is planning to export shoes to China for the first time. The CEO ha
Compute the future values of the ordinary annuities : Find the future values of the ordinary annuities. The annuities described in parts a and b have the same amount of money paid into them during the 9-year period

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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