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BRIEF EXERCISE E-5

FV = p X FV of 1 factor + (p X FV of an annuity factor)
= ($5,000 X 2.40662) + ($1,000 X 28.13238)
= $12,033.10 + $28,132.38
= $40,165.48

BRIEF EXERCISE E-17
i = 9%
?

0

$3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200 $3,200

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Discount rate from Table 4 is 5.53482. Present value of 8 payments of $3,200
each discounted at 9% is therefore $17,711.42 ($3,200 X 5.53482). Mark Barton
should not purchase the tire retreading machine because the present value of
the future cash flows is less than the $18,000 purchase price of the retreading
machine.

000 X .07 .07 (b) Inputs: Answer: *200 X $1.000** 200.530.000 0 N I PV PMT FV Answer: 86.BRIEF EXERCISE E-27 (a) Inputs: 7 6.9 ? –16.491.52 **$200.000 10 8.000* N I PV PMT FV –178.65 ? 14.

964. Inputs: 96 7.25 N Answer: I 8.BRIEF EXERCISE E-28 (a) Note—set payments at 12 per year.000 ? 0 PV PMT FV Answer: –589.000 ? 0 PV PMT FV –1.8 N I 42.48 (b) Note—set payments to 1 per year.20 . Inputs: 5 7.