NPUT DATA Answers MUST be derived using cell references using a formule OR Excel function ut typing in your www derived using your calculator will NOT result in any points You MUST FORMAT ALL of your interest rates PERCENTAGES with 2 DECIMALS. You MUST FORMAT ALL of your dollar amounts as CURRENCY with 1 DECIMALS Y MUST play all of your answers in the shaded calls below Doo 500ml 55.000 10 ans compendio per Damen PV DOC roery Iput For questions 1 . refer to the input data box highlighted in yellow above. You need to adjust your inputs as necessary. (The first question is done for you 1. What is the future value of a 1 year Certificate of Deposit (CD) and what in the affectivo unnunt rate under each of the following scenarios? Pature Value pending ERE 2000 5 b. m.compounding quasily compounding dimostly coming 2. What is the future value of the CD in 8 years and what is the effective annual rate under each of the following scenarios Future Value EFE mi coming www compounding Assume you want to invest 1000 into your savings account the END of every year for the next years 3. Assume you want to invest $1000 into your savings account at the END of every year for the next 5 years. Future Value What is the future value in your 5, if interest is compounded annually? 1. What is the future value in year 5 if interest is compounded semiannually? MUSTERF for your interest 4. Rework question 3, assuming payments are made at the BEGINNING of each period. Future Value What is the future value in you, if interest is compounded mually? b. What is the future value in year if interest is compounded semiannually? MY MUST EF for me For problems 5 & 6 use required nominal annual return of: 5. Consider the following end-of-year cash flows: Year Cash flow 0 1 $10.00 2 $60.00 3 $60.00 8.00% $0.00 a. What is the present value of these cash flows (in year Oy Net Present Value (NPV) b. Ir the purchase price of this investment is $140 today, would you buy it? Why? (Compare instrinsic value to actual price) c. What is the expected rate of return on this investment if the purchase price is $1407 Year Cash flow Internal Rate of Return (IRR) 0 -$140.00 1 $40.00 2 560.00 $60.00 d. Would you buy this investment based on your answer to part, and why? danamatiml Shasha 4. Would you buy this investment based on your answer to purtand why? Compare expected return to required retum) 560.00 $60.00 Consider the present value of the following different investments Recall the ominal rate 8.00 Present Value What is the present value of 51.000.000, de 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? (Hint: 540.300 is the payment) What is the present value of $40.000 perpetuity, if the first payment is I year from now? d. What is the present value of a $40.000 perpetuity, if the first payment is now 7. You take out a loan today and will make equal awal payments for the west 3 years starting in 1 year. Ameant berrowed What is the value of the annual payment if the nominal interest on the loan 50,000 Payment . Show the amortization of the loan in the table set up below: Year Beg Balance Payment Interest Principal Ending Balance TOTAL NPUT DATA Answers MUST be derived using cell references using a formule OR Excel function ut typing in your www derived using your calculator will NOT result in any points You MUST FORMAT ALL of your interest rates PERCENTAGES with 2 DECIMALS. You MUST FORMAT ALL of your dollar amounts as CURRENCY with 1 DECIMALS Y MUST play all of your answers in the shaded calls below Doo 500ml 55.000 10 ans compendio per Damen PV DOC roery Iput For questions 1 . refer to the input data box highlighted in yellow above. You need to adjust your inputs as necessary. (The first question is done for you 1. What is the future value of a 1 year Certificate of Deposit (CD) and what in the affectivo unnunt rate under each of the following scenarios? Pature Value pending ERE 2000 5 b. m.compounding quasily compounding dimostly coming 2. What is the future value of the CD in 8 years and what is the effective annual rate under each of the following scenarios Future Value EFE mi coming www compounding Assume you want to invest 1000 into your savings account the END of every year for the next years 3. Assume you want to invest $1000 into your savings account at the END of every year for the next 5 years. Future Value What is the future value in your 5, if interest is compounded annually? 1. What is the future value in year 5 if interest is compounded semiannually? MUSTERF for your interest 4. Rework question 3, assuming payments are made at the BEGINNING of each period. Future Value What is the future value in you, if interest is compounded mually? b. What is the future value in year if interest is compounded semiannually? MY MUST EF for me For problems 5 & 6 use required nominal annual return of: 5. Consider the following end-of-year cash flows: Year Cash flow 0 1 $10.00 2 $60.00 3 $60.00 8.00% $0.00 a. What is the present value of these cash flows (in year Oy Net Present Value (NPV) b. Ir the purchase price of this investment is $140 today, would you buy it? Why? (Compare instrinsic value to actual price) c. What is the expected rate of return on this investment if the purchase price is $1407 Year Cash flow Internal Rate of Return (IRR) 0 -$140.00 1 $40.00 2 560.00 $60.00 d. Would you buy this investment based on your answer to part, and why? danamatiml Shasha 4. Would you buy this investment based on your answer to purtand why? Compare expected return to required retum) 560.00 $60.00 Consider the present value of the following different investments Recall the ominal rate 8.00 Present Value What is the present value of 51.000.000, de 25 years from now? b. What is the present value of a $40,000 ordinary annuity for 25 years? (Hint: 540.300 is the payment) What is the present value of $40.000 perpetuity, if the first payment is I year from now? d. What is the present value of a $40.000 perpetuity, if the first payment is now 7. You take out a loan today and will make equal awal payments for the west 3 years starting in 1 year. Ameant berrowed What is the value of the annual payment if the nominal interest on the loan 50,000 Payment . Show the amortization of the loan in the table set up below: Year Beg Balance Payment Interest Principal Ending Balance TOTAL