How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%? Future Value PV FV Tables Factor Present Value       PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345). Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx  downloadto prove your answer above: Using the appropriate EXCEL spreadsheet, the answer =  PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 11EA: How much would you invest today in order to receive $30,000 in each of the following (for further...
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Q5: Solve the following two independent scenarios:

A. How much must be invested now to receive $30,000 for 10 years if the first $30,000 is received one year from now and the rate is 8%?

Future Value PV FV Tables Factor Present Value
     

PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345).

  • Use the appropriate EXCEL spreadsheet in the Chapter11 TVOM Examples.xlsx  downloadto prove your answer above:

Using the appropriate EXCEL spreadsheet, the answer = 

PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).

  

B. Project A costs $5,000 and will generate annual after-tax net cash inflows of $1,800 for five years. What is the NPV using 8% as the discount rate?

Future Value PV FV Tables Factor Net Present Value
     

PLEASE NOTE: All FV Factors will be rounded to three decimal places (i.e. 1.234). All dollar amounts will be with "$" and commas as needed and rounded to whole dollars (i.e. $12,345).

  • Use the appropriate EXCEL spreadsheet in the Chapter11 NPV IRR Analysis.xlsx  download to prove your answer above:

Using the appropriate EXCEL spreadsheet, the answer = 

PLEASE NOTE: The dollar amount will be with "$" and commas as needed and rounded to two decimal places (i.e. $12,345.67).

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