15 views

Uploaded by Alex Madarang

a

- Chapter 6 Financial Accounting Answers Key
- Chapter 6 - Test Bank
- ch 6
- GitmanAWE IM Ch04
- Chapter 6 - Test Bank
- Unit 7 Instructor Graded Assignment
- Interest Rates in Financial Analysis and Valuation
- MR Economics Slides
- 254. JGB Business Mathematics. SLT
- Akuntansi
- anualidades continuas
- Time Value of Money Examples Including Valuation
- TVM
- FinMath_Lecture 1_time Value of Money
- T10.Interest Rates&Present Value
- Chapter 7 the Time Value of Money
- Corporate Finance Exam 1 Study Questions
- Slide 2b - Tvm
- 03 Ch4-Types of Compounding
- Tv m Assignment

You are on page 1of 5

EXERCISES

Exercise 6-1

Future value of $1: n=20, i=6% (from Table 1)

Future value of $1: n=30, i=10% (from Table 1)

Future value of $1: n=12, i=4% (from Table 1)

Exercise 6-2

Present value of $1: n=20, i=6% (from Table 2)

Present value of $1: n=30, i=10% (from Table 2)

Present value of $1: n=8, i=12% (from Table 2)

Exercise 6-3

1.

2.

$31,947 =

$70,000

.45639

3.

$ 9,576 =

$40,000

.2394

The McGraw-Hill Companies, Inc., 2013

6-1

4.

$ 20,462 =

$100,000

.20462

5.

Exercise

1.

6-4$37,908

2.

= $41,699

Exercise 6-5

= $30,723

2.

$298,058 =

$60,000

4.96764

approximately 12%)

3.

$337,733 =

$30,000

11.25777

approximately 30 years)

4.

$600,000 =

$74,435

8.06072

approximately 9%)

5.

$200,000 =

4.11141

$48,645

Exercise 6-6

PV

6-2

.80426=

$4,800

PV

$4,800

.80426

$5,968

PVA =

14.99203=

$5,968

annuity amount

PVA =

$5,968

=

14.99203

$398.08

Payment

6-3

PROBLEMS

1. PV = $50,000 + ($20,000 x 3.31213 )

Problem 6-1Equipment

= $116,243 =

Future value of an ordinary annuity of $1: n=4, i=4% (from Table 3)

4.24646

Annuity amount = $141,294 = Required annual deposit

3. Choose the option with the lowest present value of cash outflows.

1. Buy option:

PV = - $2,000,000

2. Lease option:

PVAD = - $200,000 x 9.36492 = - $1,872,984

Problem 6-2

Alternative 1:

PV = $400,000

Alternative 2:

PV = PVAD = $40,000 x 10.29498 = $411,799

Present value of an annuity due of $1: n=15, i=6% (from Table 6)

Alternative 3:

PVA = $45,000

9.71225

$437,051

The McGraw-Hill Companies, Inc., 2013

6-4

PV

= $437,051

.79209

$346,184

6-5

- Chapter 6 Financial Accounting Answers KeyUploaded byMarlon Solano
- Chapter 6 - Test BankUploaded byPei Dai
- ch 6Uploaded bym0nisi
- GitmanAWE IM Ch04Uploaded bySomera Abdul Qadir
- Chapter 6 - Test BankUploaded byJohn Diaz
- Unit 7 Instructor Graded AssignmentUploaded byMatt
- Interest Rates in Financial Analysis and ValuationUploaded byAamir
- MR Economics SlidesUploaded byMahmud Shetu
- 254. JGB Business Mathematics. SLTUploaded byFatimahHamid
- AkuntansiUploaded byRo Untoro Toro
- anualidades continuasUploaded byItzelRD
- Time Value of Money Examples Including ValuationUploaded byAnissa Livnglife Golden Fowles
- TVMUploaded byDiptendu Basu
- FinMath_Lecture 1_time Value of MoneyUploaded byavirg
- T10.Interest Rates&Present ValueUploaded byanmaye
- Chapter 7 the Time Value of MoneyUploaded by9986212378
- Corporate Finance Exam 1 Study QuestionsUploaded byStacey Nash
- Slide 2b - TvmUploaded bySuneet Mohanty
- 03 Ch4-Types of CompoundingUploaded byzohairm93
- Tv m AssignmentUploaded byAnn Marie San Miguel
- K&P Inc. Discounted Cash Flow AnalysisUploaded bywinzenzero
- Time Value of MoneyUploaded byyolanda monika
- 10 - Mixed Cash Flows and AnnuitiesUploaded byAli Hussan
- Tutorial Excel FV Lumpsum Ver2Uploaded bytareq tanjim
- Cff307.pptUploaded bydaidaina
- Topic 2 Principles of Money-time RelationshipUploaded byJeshua Llorera
- tvom.pdfUploaded bygoyal_khushbu88
- Which One of These Best Fits the Description of an Agency CostUploaded byGeraldMcCoy
- chpt4Uploaded byAnkush Sharma
- averi wasser -math projectUploaded byapi-252975243

- Econ 101 Cheat Sheet (FInal)Uploaded byAlex Madarang
- Chapter 16 PPTs.pdfUploaded byAlex Madarang
- Chapter 14 PPTs.pdfUploaded byAlex Madarang
- ACCTG 508 - Chapter 6 Notes.docxUploaded byAlex Madarang
- ACCTG 432- Exam 2 NotesUploaded byAlex Madarang
- Accounting Alt Solutions 8Uploaded byrobertplanto1
- ACCTG 508 - Chapter 5 NotesUploaded byAlex Madarang
- Chapter 20 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 21 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 19 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 17 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 18 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 15 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 16 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 14 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 13 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 11 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 12 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 10 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 9 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 7 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 5 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 4 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 3 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 1 - Alternate SolutionsUploaded byAlex Madarang
- Chapter 2 - Alternate SolutionsUploaded byAlex Madarang
- Project 4- Reflection RWS 280Uploaded byAlex Madarang
- RWS 280- Project 2 RDUploaded byAlex Madarang
- RWS 280- Project 2 FDUploaded byAlex Madarang

- General Maths HSC SyllabusUploaded bybwallace1997
- 323552732-JAIIB-MACMILLAN-eBook-Accounting-and-Finance-for-Bankers.pdfUploaded bymalligasm
- R5 Time Value of MoneyUploaded bytanya1780
- credit #2 (2)Uploaded bymariel
- AnnuitiesUploaded byKaRin MerRo
- Tentative GDBA Schedule (Dec 11) 2018-19Uploaded byKhalil Ben Jemia
- ANNUITYUploaded byAPPIAH DENNIS OFORI
- Basics of Financial and Economic AnalysisUploaded byKhalid Mahmood
- Accounting for LawyersUploaded bynamratha minupuri
- Corporate Finance : Time Value of MoneyUploaded byzetztzert
- ch03Uploaded bynhjui
- International_Financial_ManagementUploaded bySekla Shaqdiesel
- FM11 Ch 02 Study GuideUploaded byErnest Nyangi
- XL FunctionsUploaded byBian Hardiyanto
- MBA711- Answers to Book - Chapter 4.docUploaded byHạng Vũ
- 2010-01-30_173926_JA117_tjdouglasUploaded byAwais Abbasi
- Excel Notes 2Uploaded bySanket Gangal
- Simple Interest 1Uploaded byzahidaca
- Time value of money problemUploaded byboncyrellplazos
- Jerome4 Sample Chap08Uploaded byBasil Babym
- 408-2012-Lec03 DCF1Uploaded byThyago Oliveira
- Busn233Ch04Uploaded byDavid Ioana
- ch006Uploaded byfa2heem
- Full Final IFP Reference 2007Uploaded byDeepshikha Goel
- College ProjectUploaded byAkansha Gupta
- Ch 2 Time Value of MoneyUploaded byLeo Yam
- annuities.pptUploaded byRaymart Bulagsac
- ICB - Curriculum - ACP - Subject 1 - JB - Business LiteracyUploaded byrakeshblr
- topic 2 - time value of money - completedUploaded byapi-337515742
- Surveillance.docUploaded byKishore Steve Austin