Question: Please answer them correctly. Here are short 3 problems. Please solve all 3 problems. I would really appreciate your effort. Thanks. 1. Cullumber Corp had
Please answer them correctly. Here are short 3 problems. Please solve all 3 problems. I would really appreciate your effort. Thanks.
1. Cullumber Corp had sales of $336,000 in 2017. If management expects its sales to be $476,450 in 6 years, what is the rate at which the companys sales are expected to grow? (If you solve this problem with algebra round intermediate calculations to 4 decimal places, in all cases round your final answer to 2 decimal places, e.g. 8.72%.)
Growth Rate _____?
2. Ivanhoe, Inc., management expects the company to earn cash flows of $12,700, $15,100, $18,200, and $19,500 over the next four years. If the company uses an 9 percent discount rate, what is the future value of these cash flows at the end of year 4? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
Future Value $_____?
3. Jason Allen borrowed some money from his friend and promised to repay him $1,230, $1,330, $1,550, $1,620, and $1,620 over the next five years. If the friend normally discounts investment cash flows at 7.5 percent annually, how much did Jason borrow? (Round answer to 2 decimal places, e.g. 15.25. Do not round factor values.)
Present value $_____?
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