Using the equations and example under 1 2 Interest Rates and Present Value, recreate the NVP table (below) using the dollar value of $10,000, interest rates of 5, 8, 12 and 15 and the following year sequence 5, 10, 15 and 20 Explain your findings Interest rate ( ) 5 10 15 20 20 Present Value of $15,000 Time until payment 10 years 15 years 20 years $9,208 70 $7,215 26 $5,653 34 5,783 15 3,590 88 2,229 65 3,707 77 1,843 42 916 50 973 58 391 26 5 years $11,752 89 9,313 82 7,457 65 6,028 16 2,422 58

Question: Using the equations and example under 1.2 Interest Rates and Present Value, recreate the NVP table (below) using the dollar value of $10,000, interest rates

Using the equations and example under 1.2 Interest Rates and Present Value, recreate the NVP table (below) using the dollar value of $10,000, interest rates of 5, 8, 12 and 15 and the following year sequence 5, 10, 15 and 20.

. 20% Present Value of $15,000 Time until payment Interest rate (%) 10 15 20 5 years 10 years 13 years 20 years $11,752.89 $9,2

Explain your findings.

Interest rate (%) 5 10 15 20 20%. Present Value of $15,000 Time until payment 10 years 15 years 20 years $9,208.70 $7,215.26 $5,653.34 5,783.15 3,590.88 2,229.65 3,707.77 1,843.42 916.50 973.58 391.26 5 years $11,752.89 9,313.82 7,457.65 6,028.16 2,422.58

Step by Step Solution

★★★★★

3.46 Rating (146 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To recreate the Net Present Value NPV table using the given interest rates dollar value and year seq... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. a. An initial $500 compounded for 1 year at 6% b. An initial $500 compounded...

Find the following values using the equations and then a financial calculator. Compounding/discounting occurs annually. a. An initial $600 compounded for 1 year at 6% b. An initial $600 compounded...

Maximum Pension Fund is attempting to manage one of the bond portfolios under its management. The fund has identified three bonds that have five-year maturities and trade at a yield to maturity of 9...

I need help on the 1065 partnership return. Its the one with Bilco Products. Thank you for whoever does. :) 2012 Edition Individuals', Corporation, Partnership, and Fiduciary Fact Patterns and Blank...

QUESTION 2 TABLE B.1 Present Value of 1 Rate Periods 9% 2% 3% 6% 7% 8% 9% 10% 12% 15 0.9901 0.9804 0.9709 0.9615 0.9524 0.9434 0.9346 0.9259 0.9174 0.90910.8929 0.8696 0.9803 0.9612 0.9426 0.9246...

check on the file and download the...

Can anyone help me with this or already have the solution this whole Finance Workbook for Madura Personal Finance, Third Edition by Jeff Madura BUILDING YOUR OWN FINANCIAL PLAN WORKBOOK INDEX Chapter...

download in the attach file and work on...

6-7; 6-9; 6-12 . I need help with these finance questions. PROBLEM 6-1 Cash provided by operations (CPBO) differs from free cash flow for the following reasons: 1. Solution Legend = Value given in...

Case Analysis 1. Compute the yield to maturity of Land'o'Toys' bonds before the purchase announcement and use it to determine the likely current bond rating. (Compare YTM to the table on p. 269)....

Should quality control at Johnson & Johnson be centralized?

What circumstances favor the purchase of a pure annuity over an annuity twenty-years-certain? What circumstances favor an annuity twenty-years-certain over a pure annuity?

5 . 4 1 Analyze this case from the perspective of risk benefi t analysis. What conclusion would a reasonable manufacturer take? In assessing the risk, be sure to keep in mind that there is some fi...

Calculate the maximum proton energy from the 3 He(n, p) reaction when induced by 2.1 MeV neutrons.

Write balanced molecular equations to illustrate each of the following reactions. All the metals form 2+ ions. (Use the lowest possible coefficients. Be sure to to specify states such as (ag) or (s)....

Describe with the aid of a diagram a chiral compound and its epimer.

a region where the function is analytical is the function Lnz Determine with the help. S(2) = VE+2

What do you understand by noise pollution? What are its ill effects?

what is the answer 3 of 9 A township has corners with the coordinates A(0, 0), B(7, 0), C(7, 5), and D(2, 5), where measurements are given in miles. Remembering that there are 5280 feet in one mile...

Portray in words what transforms you would have to make to your execution to some degree (a) to accomplish this and remark on the benefits and detriments of this thought.You are approached to compose...

For example, you may start your game as Alice, above ground, who encounters the white rabbit and talks to him. Eventually, you find the rabbit hole and fall down to the room containing "eat me" and...

Consider an operating system that uses hardware support for paging to provide virtual memory to applications. (a) (i) Explain how the hardware and operating system support for paging combine to...

An example program using a future is shown below. Future f = new Future() { @Override public String execute() { // ...long running computation... return data; }; // ... String result = f.get(); //...

By what principle can you claim that each of your proposed questions in the sequence is maximally informative? To what value should the Examiners lower the threshold mark for a First overall to...

Step by step and correct format and answers asap (-2)(2x - 3y) = (-2)(-7) em to sausood oldneon ay # 2 T novolog 61 3 3 Buloa numbsup "enormups issalmon to moreve eds not gnivlog m abordom and sit...