Question: CALCULATE THE FOLLOWING AMOUNTS USING PRESENT VALUE TABLES. 1. Susan want to have $30,000 available for use in five years. How much should Susan

CALCULATE THE FOLLOWING AMOUNTS USING PRESENT VALUE TABLES. 1. Susan want to

CALCULATE THE FOLLOWING AMOUNTS USING PRESENT VALUE TABLES. 1. Susan want to have $30,000 available for use in five years. How much should Susan invest now in order to have the $30,000 available in five years if she can invest money at 16%. 2. ANSWER = Ace Corporation has entered into a 5 year lease for a building it will use as a warehouse. The annual payment under the lease will be $24,000. What is the present value of the lease payments if the discount rate is 10%? ANSWER = 3. Your grandfather would like to share some of his good fortune with you. He offers to give you money under one of the following scenarios (you get to choose). a. $8,000 a year at the end of each of the next eight years. b. $50,000 (lump sum) now. c. $100,000 (lump sum) eight years from now. Calculate the present value of each scenario using a 6% interest rate. a. Present Value = b. Present Value= c. Present Value = Circle the scenario that maximizes your inheritance. Calculate the present value of each scenario using a 12% interest rate. a. Present Value= b. Present Value = c. Present Value = Circle the scenario that maximizes your inheritance.

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