Question: please answer on excel sheet, thank you so much!!! I will rate when finshed. LO 4 L01 35. Comparing Cash Flow Streams You've just joined

please answer on excel sheet, thank you so much!!! I will rate when finshed.  please answer on excel sheet, thank you so much!!! I will
rate when finshed. LO 4 L01 35. Comparing Cash Flow Streams You've

LO 4 L01 35. Comparing Cash Flow Streams You've just joined the investment banking firm of Dewey, Cheatum, and Howe. They've offered you two different salary arrangements. You can have $6,100 per month for the next two years, or you can have $5,100 per month for the next two years, along with a $25,000 signing bonus today. If the interest rate is 7 percent compounded monthly, which do you prefer? 36. Calculating Present Value of Annuities Peter Lynchpin wants to sell you an investment contract that pays equal $22,500 amounts at the end of each year for the next 20 years. If you require an effective annual return of 8 percent on this investment, how much will you pay for the contract today? 37. Calculating Rates of Return You're trying to choose between two different investments, both of which have up-front costs of $30,000. Investment G returns $65,000 in six years. Investment H returns $98,000 in nine years. Which of these investments has the higher return? 38. Present Value and Interest Rates What is the relationship between the value of an annuity and the level of interest rates? Suppose you just bought a 10-year annuity of $5,200 per year at the current interest rate of 10 percent per year. What happens to the value of your investment if interest rates suddenly drop to 5 percent? What if interest rates suddenly rise to 15 percent? LO1 39. Calculating the Number of Payments You're prepared to make monthly payments of $250, beginning at the end of this month, into an account that pays 8 percent interest compounded monthly. How many payments will you have made when your account balance reaches $50,000? LO 2 40. Calculating Annuity Present Values You want to borrow $75,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,475, but no more. Assuming monthly compounding, what is the highest rate you can afford on a 60-month APR loan? LO1 41. Calculating Present Values In March 2018, the Buffalo Bills signed Star Lotulelei to a contract reportedly worth $50 million. Lotulelei's salary (including bonuses) was to be paid as $17.1 million in 2018, $8.9 million in 2019, $7.5 million in 2020, and $8.25 million in 2021 and 2022. If the appropriate interest rate is 11 percent, what kind of deal did the defensive tackle sack? Assume all payments are paid at the end of each year. LO1 42. Calculating Present Values The contract signed in February 2018 by Jimmy Garoppolo that we discussed at the beginning of the chapter was Valuation of Future Cash Flows LO4 actually paid as a $35 million signing bonus to be paid immediately and $7.6 million salary for 2018. The remaining salary was $18.6 million in 2010 $25.2 million in 2020, $25.5 million in 2021, and $25.6 million in 2027 the appropriate interest rate is 1l percent, what kind of deal did the quarterback toss? Assume all payments other than the first $35 million are paid at the end of each year. 43. EAR versus APR You have just purchased a new warehouse. To finance the purchase, you've arranged for a 30-year mortgage loan for 80 percent of the $3,500,000 purchase price. The monthly payment on this loan will be $15,100. What is the APR on this loan? The EAR? 44. Annuity Values You are planning your retirement in 10 years. You currently have $50,000 in a bond account and $250,000 in a stock account. You plan to add $9,000 per year at the end of each of the next 10 years to your bond account. The stock account will earn a return of 10.5 percent and the bond account will earn a return of 7 percent. When you retire, you plan to withdraw an equal amount for each of the next 25 years at the end of each year and have nothing left. Additionally, when you retire you will transfer your money to an account that earns 6.25 percent. How much can you L01 L04 withdraw each year? 45. Calculating Annuities Due Interest Rates You have arranged for a lony your new car that will require the first payment today. The loan is for $28.500, and the monthly payments are $525. If the loan will be paidus over the next 60 months, what is the APR of the loan

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