Kilarny Company is considering investing in an annuity contract that will return an amount at the...
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Kilarny Company is considering investing in an annuity contract that will return an amount at the end of each year for 15 years. Annuity payment to be received Number of annuity payments Desired return $25,000 15 6% What amount should Kilarny Company pay for this investment to generate the desired return? Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Show calculations using any of the following methods. a. Factor Table PV.2 (Display the factor with 5 decimals.) Annuity amount Factor Present Value b. Financial calculator Fields N PMT FV PV c. Excel's PV function Present value Input Present Value Kilarny Company is considering investing in an annuity contract that will return an amount at the end of each year for 15 years. Annuity payment to be received Number of annuity payments Desired return $25,000 15 6% What amount should Kilarny Company pay for this investment to generate the desired return? Required: Provide input into cells shaded in yellow in this template. Use mathematical formulas with cell references to the Problem area or work area as indicated. Show calculations using any of the following methods. a. Factor Table PV.2 (Display the factor with 5 decimals.) Annuity amount Factor Present Value b. Financial calculator Fields N PMT FV PV c. Excel's PV function Present value Input Present Value
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Answer rating: 100% (QA)
To calculate the amount Kilarny Company should pay for the investment we can use the Present Value PV formula The formula for calculating the present ... View the full answer
Related Book For
Accounting Principles
ISBN: 978-0470534793
10th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
Posted Date:
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