When the genesis and sensible essential teams held their

Reference no: EM13394996

When the Genesis and Sensible Essential teams held their weekly meeting, the time value of money and its applicability yielded an extremely stimulating discussion. However, most of the team members from Genesis were very perplexed. Sensible Essentials decided the most expedient way to demonstrate how interest rates as well as time impact the value of money was to use examples. You have been asked to prepare a report analyzing your findings of the three example calculations listed below.

In this assignment, you will do the following:
1.Calculate the future value of $100,000 ten years from now based on the following annual interest rates:
       A.2%
       B.5%
       C.8%
       D.10%

2.Calculate the present value of a stream of cash flows based on a discount rate of 8%. Annual cash flow is as follows:
       A. Year 1 = $100,000
       B. Year 2 = $150,000
       C.Year 3 = $200,000
       D. Year 4 = $200,000
       E.Year 5 = $150,000
       F.Years 6-10 = $100,000

3.Calculate the present value of the cash flow stream in problem 2 with the following interest rates:
        A.Year 1 = 8%
        B.Year 2 = 6%
        C.Year 3 = 10%
        D.Year 4 = 4%
        E.Year 5 = 6%
        F.Years 6-10 = 4

Reference no: EM13394996

Questions Cloud

By the way the us had a 498 billion trade deficit with : by the way the us had a 498 billion trade deficit with china in 2010. what was the trade 2011 trade deficit? what is

Why do services pose unique challenges to marketers how : why do services pose unique challenges to marketers? how important are customer expectations in regard to managing and

This action has two results first the amount of spam : an organization dedicated to reducing spam tries to get internet service providersisp in an east asian country to stop

What impact would the change which shifts the economys : what impact would a change that shifts an economys production possibilities curve outward have on the long run

When the genesis and sensible essential teams held their : when the genesis and sensible essential teams held their weekly meeting the time value of money and its applicability

Why are marketing channels and intermediaries necessary : why are marketing channels and intermediaries necessary? what is the most important function carried out by

What if any practices of corporate social responsibility : today companies must decide whether to sell their products directly to their customers via the internet or to use more

Sometimes brands need to be repositioned in the marketplace : part 1 deliverable length 1200 wordssometimes brands need to be repositioned in the marketplace for a variety of

In this assignment you will conduct a broad analysis of : in this assignment you will conduct a broad analysis of your study company using multiple financial ratio categories to

User Account

All Pages