Investment X offers to pay you $4,600 per year for nine years, whereas Investment Y offers...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Investment X offers to pay you $4,600 per year for nine years, whereas Investment Y offers to pay you $6,500 per year for six years. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to 2 decimal places.) Calculate the present value for Investment X and Y if the discount rate is 4%. Investment X Investment Y Present value. Investment X Investment Y $ Calculate the present value for Investment X and Y if the discount rate is 14%. Present value. $ TABLE A.1 Future value of $1 at the end of t periods = (1 + r) Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 40 1% 50 2% 3% 1.0829 1.1717 1.2668 1.0937 1.1951 1.3048 1.0100 1.0200 1.0300 1.0400 1.0201 1.0404 1.0609 1.0816 1.0303 1.0612 1.0927 1.0406 1.0824 1.1255 1.1699 1.2155 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.0615 1.1262 1.1941 1.4185 1.0721 1.1487 1.2299 1.3159 1.1046 1.2190 1.3439 1.1495 1.3195 1.5126 4% 1.1610 1.3459 1.5580 1.1249 1.2653 1.3686 1.4889 2.2080 3.2620 1.4802 1.6010 1.1157 1.2434 1.3842 1.5395 1.7103 1.1268 1.2682 1.4258 1.1381 1.2936 1.4685 1.6651 1.8009 1.1726 1.3728 1.6047 1.8730 1.1843 1.4002 1.6528 1.9479 2.0258 1.1961 1.4282 1.7024 1.2081 1.4568 1.7535 2.1068 1.2202 1.4859 1.8061 1.2324 1.5157 1.8603 1.7317 2.1911 5% 2.2788 1.2447 1.5460 1.9161 2.3699 1.2572 1.5769 1.9736 2.4647 1.2697 1.6084 2.0328 2.5633 1.0500 1.4775 1.5938 1.4233 1.5513 1.6895 1.6289 1.7908 1.1025 1.1576 1.3401 1.4071 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 1.2824 1.6406 2.0938 2.6658 1.3478 1.8114 2.4273 3.2434 4.8010 1.6446 2.6916 4.3839 7.1067 7.0400 11.467 60 1.8167 3.2810 5.8916 10.520 18.679 2.7860 2.9253 3.0715 3.2251 6% 1.0600 3.3864 4.3219 1.1236 1.1910 1.2625 1.5036 1.8983 1.7959 2.0122 1.8856 2.1329 1.9799 2.2609 2.5785 2.8543 7% 3.6035 1.0700 3.8197 1.1449 4.0489 1.2250 4.2919 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.3966 2.7590 2.5404 2.9522 2.1049 2.6928 3.1588 2.2522 2.4098 3.0256 3.6165 3.2071 3.8697 3.3996 3.3799 4.1406 4.4304 4.7405 5.0724 5.4274 5.7435 7.6123 10.286 14.974 18.420 29.457 32.988 57.946 8% 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 5.0338 5.4365 5.8715 6.3412 6.8485 10.063 21.725 46.902 101.26 9% 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 2.8127 3.0658 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 6.1088 6.6586 7.2579 7.9111 8.6231 13.268 31.409 74.358 176.03 10% 1.1000 1.2100 Interest Rate 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 8.9543 9.8497 10.835 17.449 45.259 117.39 304.48 12% 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 10.804 12.100 13.552 15.179 17.000 29.960 93.051 289.00 897.60 14% 1.1400 1.2996 1.4815 1.6890 1.9254 2.1950 2.5023 2.8526 3.2519 3.7072 4.2262 4.8179 5.4924 6.2613 7.1379 8.1372 9.2765 10.575 12.056 13.743 15.668 17.861 20.362 23.212 26.462 50.950 188.88 700.23 2595.9 15% 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 9.3576 10.761 12.375 14.232 16.367 18.822 21.645 24.891 28.625 32.919 66.212 267.86 1083.7 4384.0 16% 1.1600 1.3456 1.5609 1.8106 2.1003 2.4364 2.8262 3.2784 3.8030 4.4114 5.1173 5.9360 6.8858 7.9875 9.2655 10.748 12.468 14.463 16.777 19.461 22.574 26.186 30.376 35.236 40.874 85.850 378.72 1670.7 7370.2 18% 1.1800 1.3924 1.6430 1.9388 2.2878 2.6996 3.1855 3.7589 4.4355 5.2338 6.1759 7.2876 8.5994 10.147 11.974 14.129 16.672 19.673 23.214 27.393 32.324 38.142 45.008 53.109 62.669 143.37 750.38 3927.4 20555. 20% 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 7.4301 8.9161 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 46.005 24% 79.497 1.2400 1.5376 1.9066 2.3642 2.9316 3.6352 4.5077 5.5895 6.9310 8.5944 10.657 13.215 16.386 20.319 25.196 31.243 38.741 48.039 59.568 73.864 91.592 55.206 66.247 140.83 174.63 95.396 216.54 237.38 634.82 1469.8 5455.9 113.57 9100.4 46890. 56348. 28% 5.6295 1.2800 1.3200 1.3600 1.6384 1.7424 1.8496 2.0972 2.3000 2.5155 2.6844 3.0360 3.4210 3.4360 4.0075 4.6526 4.3980 5.2899 6.3275 32% 11.806 7.2058 9.2170 11.703 9.2234 12.166 15.917 21.647 15.112 6.9826 8.6054 16.060 21.199 19.343 27.983 40.037 24.759 36.937 31.691 48.757 40.565 64.359 36% 292.30 593.20 74.053 100.71 51.923 84.954 136.97 66.461 112.14 186.28 85.071 148.02 108.89 195.39 139.38 257.92 178.41 340.45 228.36 449.39 374.14 783.02 478.90 1033.6 1645.5 4142.1 19427. 66521. 29.439 54.451 253.34 344.54 468.57 637.26 866.67 1178.7 1603.0 2180.1 10143. Investment X offers to pay you $4,600 per year for nine years, whereas Investment Y offers to pay you $6,500 per year for six years. Use Appendix D. (Round "PV Factor" to 3 decimal places. Round the final answers to 2 decimal places.) Calculate the present value for Investment X and Y if the discount rate is 4%. Investment X Investment Y Present value. Investment X Investment Y $ Calculate the present value for Investment X and Y if the discount rate is 14%. Present value. $ TABLE A.1 Future value of $1 at the end of t periods = (1 + r) Period 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 30 40 1% 50 2% 3% 1.0829 1.1717 1.2668 1.0937 1.1951 1.3048 1.0100 1.0200 1.0300 1.0400 1.0201 1.0404 1.0609 1.0816 1.0303 1.0612 1.0927 1.0406 1.0824 1.1255 1.1699 1.2155 1.0510 1.1041 1.1593 1.2167 1.2763 1.3382 1.0615 1.1262 1.1941 1.4185 1.0721 1.1487 1.2299 1.3159 1.1046 1.2190 1.3439 1.1495 1.3195 1.5126 4% 1.1610 1.3459 1.5580 1.1249 1.2653 1.3686 1.4889 2.2080 3.2620 1.4802 1.6010 1.1157 1.2434 1.3842 1.5395 1.7103 1.1268 1.2682 1.4258 1.1381 1.2936 1.4685 1.6651 1.8009 1.1726 1.3728 1.6047 1.8730 1.1843 1.4002 1.6528 1.9479 2.0258 1.1961 1.4282 1.7024 1.2081 1.4568 1.7535 2.1068 1.2202 1.4859 1.8061 1.2324 1.5157 1.8603 1.7317 2.1911 5% 2.2788 1.2447 1.5460 1.9161 2.3699 1.2572 1.5769 1.9736 2.4647 1.2697 1.6084 2.0328 2.5633 1.0500 1.4775 1.5938 1.4233 1.5513 1.6895 1.6289 1.7908 1.1025 1.1576 1.3401 1.4071 2.0789 2.1829 2.2920 2.4066 2.5270 2.6533 1.2824 1.6406 2.0938 2.6658 1.3478 1.8114 2.4273 3.2434 4.8010 1.6446 2.6916 4.3839 7.1067 7.0400 11.467 60 1.8167 3.2810 5.8916 10.520 18.679 2.7860 2.9253 3.0715 3.2251 6% 1.0600 3.3864 4.3219 1.1236 1.1910 1.2625 1.5036 1.8983 1.7959 2.0122 1.8856 2.1329 1.9799 2.2609 2.5785 2.8543 7% 3.6035 1.0700 3.8197 1.1449 4.0489 1.2250 4.2919 1.3108 1.4026 1.5007 1.6058 1.7182 1.8385 1.9672 2.3966 2.7590 2.5404 2.9522 2.1049 2.6928 3.1588 2.2522 2.4098 3.0256 3.6165 3.2071 3.8697 3.3996 3.3799 4.1406 4.4304 4.7405 5.0724 5.4274 5.7435 7.6123 10.286 14.974 18.420 29.457 32.988 57.946 8% 1.0800 1.1664 1.2597 1.3605 1.4693 1.5869 1.7138 1.8509 1.9990 2.1589 2.3316 2.5182 2.7196 2.9372 3.1722 3.4259 3.7000 3.9960 4.3157 4.6610 5.0338 5.4365 5.8715 6.3412 6.8485 10.063 21.725 46.902 101.26 9% 1.0900 1.1881 1.2950 1.4116 1.5386 1.6771 1.8280 1.9926 2.1719 2.3674 2.5804 2.8127 3.0658 3.3417 3.6425 3.9703 4.3276 4.7171 5.1417 5.6044 6.1088 6.6586 7.2579 7.9111 8.6231 13.268 31.409 74.358 176.03 10% 1.1000 1.2100 Interest Rate 1.3310 1.4641 1.6105 1.7716 1.9487 2.1436 2.3579 2.5937 2.8531 3.1384 3.4523 3.7975 4.1772 4.5950 5.0545 5.5599 6.1159 6.7275 7.4002 8.1403 8.9543 9.8497 10.835 17.449 45.259 117.39 304.48 12% 1.1200 1.2544 1.4049 1.5735 1.7623 1.9738 2.2107 2.4760 2.7731 3.1058 3.4785 3.8960 4.3635 4.8871 5.4736 6.1304 6.8660 7.6900 8.6128 9.6463 10.804 12.100 13.552 15.179 17.000 29.960 93.051 289.00 897.60 14% 1.1400 1.2996 1.4815 1.6890 1.9254 2.1950 2.5023 2.8526 3.2519 3.7072 4.2262 4.8179 5.4924 6.2613 7.1379 8.1372 9.2765 10.575 12.056 13.743 15.668 17.861 20.362 23.212 26.462 50.950 188.88 700.23 2595.9 15% 1.1500 1.3225 1.5209 1.7490 2.0114 2.3131 2.6600 3.0590 3.5179 4.0456 4.6524 5.3503 6.1528 7.0757 8.1371 9.3576 10.761 12.375 14.232 16.367 18.822 21.645 24.891 28.625 32.919 66.212 267.86 1083.7 4384.0 16% 1.1600 1.3456 1.5609 1.8106 2.1003 2.4364 2.8262 3.2784 3.8030 4.4114 5.1173 5.9360 6.8858 7.9875 9.2655 10.748 12.468 14.463 16.777 19.461 22.574 26.186 30.376 35.236 40.874 85.850 378.72 1670.7 7370.2 18% 1.1800 1.3924 1.6430 1.9388 2.2878 2.6996 3.1855 3.7589 4.4355 5.2338 6.1759 7.2876 8.5994 10.147 11.974 14.129 16.672 19.673 23.214 27.393 32.324 38.142 45.008 53.109 62.669 143.37 750.38 3927.4 20555. 20% 1.2000 1.4400 1.7280 2.0736 2.4883 2.9860 3.5832 4.2998 5.1598 6.1917 7.4301 8.9161 10.699 12.839 15.407 18.488 22.186 26.623 31.948 38.338 46.005 24% 79.497 1.2400 1.5376 1.9066 2.3642 2.9316 3.6352 4.5077 5.5895 6.9310 8.5944 10.657 13.215 16.386 20.319 25.196 31.243 38.741 48.039 59.568 73.864 91.592 55.206 66.247 140.83 174.63 95.396 216.54 237.38 634.82 1469.8 5455.9 113.57 9100.4 46890. 56348. 28% 5.6295 1.2800 1.3200 1.3600 1.6384 1.7424 1.8496 2.0972 2.3000 2.5155 2.6844 3.0360 3.4210 3.4360 4.0075 4.6526 4.3980 5.2899 6.3275 32% 11.806 7.2058 9.2170 11.703 9.2234 12.166 15.917 21.647 15.112 6.9826 8.6054 16.060 21.199 19.343 27.983 40.037 24.759 36.937 31.691 48.757 40.565 64.359 36% 292.30 593.20 74.053 100.71 51.923 84.954 136.97 66.461 112.14 186.28 85.071 148.02 108.89 195.39 139.38 257.92 178.41 340.45 228.36 449.39 374.14 783.02 478.90 1033.6 1645.5 4142.1 19427. 66521. 29.439 54.451 253.34 344.54 468.57 637.26 866.67 1178.7 1603.0 2180.1 10143.
Expert Answer:
Answer rating: 100% (QA)
To calculate the present value of Investment X and Y at different discount rates you can use t... View the full answer
Related Book For
Fundamentals of corporate finance
ISBN: 978-0073382395
9th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
Students also viewed these finance questions
-
Investment X offers to pay you $ 4,500 per year for nine years, whereas Investment Y offers to pay you $ 7,000 per year for five years. Which of these cash flow streams has the higher present value...
-
Investment X offers to pay you $6000 per year for 14 years, whereas investment Y offers to pay you $8000 per year for 11 years. If the discount rate is 10 percent, Investment X has a present value of...
-
In Exercises 13 through 20, use the chain rule to compute the derivative dy/dx for the given value of x. y ==;u= u 3 - 1 for x 2
-
Explain why the temperature of a gas increases when it is adiabatically compressed.
-
Comdell Computer receives computer chips from Chipco. Each batch sent by Chipco is inspected as follows: 35 chips are tested and the batch passes inspection if at most one defective chip is found in...
-
1. Your instructor will divide the class into teams and assign each team the task of investigating the start-up of one of the following businesses: a. Submarine sandwich shop b. Day care service c....
-
PostNews. com offers its subscribers several services, such as an annotated TV guide and local-area information on weather, restaurants, and movie theaters. Its main revenue sources are fees for...
-
Please create the model of a library database. Describe the one-to-many relationships in the library database What is the name of the DDL file you exported in step 2.3 Generate DDL ? Create a...
-
The New Branch School District operates a fleet of 40 buses that serve approximately 1,000 students in grades K12. The bus operation involves 30 regular routes, plus special routes for activities,...
-
1). Trifles Ltd acquired 280,000 shares in Bamburg Ltd on 01 July 2019 and as a result Trifles Ltd has a control of 80% in Bamburg. The purchased consideration transferred by Trifles Ltd in exchange...
-
Birch Limited received cash of $24,000 on November 1 as prepayment for 12 months' rent. The accountant recorded the cash receipt as a debit to cash and a credit to Rent Revenue. What is the year-end...
-
Can you elaborate on how Functionalism accounts for societal dysfunction and conflict, and how these elements contribute to the overall functioning and evolution of society?
-
Discuss on the topic cyber threats and how a company should address these threats from an enterprise risk management perspective. You should include some level of cost/benefit discussion in your post...
-
Ahuna, a manager, indicated that she would like her employees to work 49 hours a week given the busy season at the organization. How does the ESA apply to the hours Ahuna would like her staff to...
-
Industry Code of Practice is assessed 20. NHVR appoints an assessment panel During the publication period the NHVR appoints a panel to assess the Consultation Draft of the ICP. This will consist of...
-
.a~1- 1) Consider the Utility function u = xx St. Px + Px2 = y a. Examine the convexity of the indifference curve. b. Derive the Marshallian demand curves for x and x. c. Derive the Hicksian demand...
-
Explain briefly what is meant by electronic data interchange (EDI). How does EDI affect a companys audit trail?
-
Come and Go Bank offers your firm a 10 percent discount interest loan for up to $25 million, and in addition requires you to maintain a 5 percent compensating balance against the amount borrowed....
-
a. What are scenario, sensitivity, and simulation analysis? b. What are the drawbacks to the various types of what-if analysis?
-
Growth Rates based on the result in Problem 31, show that the internal and sustainable growth rates are as given in the chapter. S = Previous years sales A = Total assets D = Total debt E = Total...
-
One end of a wire is tied to a point A on the ceiling and the other end is tied to a point on a ring of radius \(R\) and negligible mass. The ring therefore hangs from the wire in a vertical plane...
-
A particle moves in a cylindrically symmetric potential \(U(ho, z)\). Use cylindrical coordinates \(ho, \varphi\), and \(z\) to parameterize the space. (a) Write the Lagrangian for an unconstrained...
-
A particle of mass \(m\) slides inside a smooth paraboloid of revolution whose axis of symmetry \(z\) is vertical. The surface is defined by the equation \(z=\alpha ho^{2}\), where \(z\) and \(ho\)...
Study smarter with the SolutionInn App