Why market prices are useful to a financial manager

Reference no: EM13278696

1 : You buy a mutual fund for $500 for your son's education. What will be the value of the fund in 18 years if you can earn 8% a year on the fund. 2 : What is the value of an investment of $100 a month for 10 years if you earn 4% every 6 months 3 : You wish to have $100,000 in 15 years and can earn 7% over those years. You need to determine how much you need to invest today to reach that goal of $100,000. 4 : You are receiving a payment of $500 a month as a settlement and wish to determine the lump sum value of those payments today Answer : Future Value : Future Value of Annuity : Present Value of Annuity : Present Value 5. Which of the following best explains why market prices are useful to a financial manager when performing a cost benefit analysis? They can be used to determine how much an asset can be sold for. They can be used to convert different services and commodities into equivalent cash values which can be compared. They allow all commodities and services to be assigned a fixed and unchanging value. They can be evaluated to determine whether the market in which the manager exchanges goods and services offers true value.

Reference no: EM13278696

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