Question 1 of5 > 0.5 /1 E E Risk-free discount rate is 2% Risk-adjusted discount rate is 8% Riskfree discount rate is 2% (For calculation purposes, use 5 decimal plum as displayed in the factor table provided. Round nal answers to 2 decimal places. cg. 5,275.25.) Click here to View the factor table PRESENT VALUE OF 1. Click here to View the factor table PRESENT VALUE OF AN ANNUITY OF 1, Scenario 1: Marinmight use traditionalapproach v model. Fair value $ 489.70 Scenario 2: Marin might use expected cash ew v model. Fair value 5 451.02 Question 4 of 5 /l 35 View Policies Current Attempt in Progress You are told that a note has repayment terms of $1,350 per quarter for 5 years, with a stated interest rate of 8%. How much of the total payment is for principal, and how much is for interest? Calculate using (a) nancial calculator or (b) Excel function PV. (Round answers to 2 decimal places, e3. 5,275.25.) Total payment for principal 3 Total interest 55 Determine if the total interest will be higher or lower than with an annual payment. The total interest will be v than with an annual payment. Question 3 of 5 > - /1 ... View Policies Current Attempt in Progress Cullumber Company must perform an impairment test on its equipment. The equipment will produce the following cash flows: Year 1, $35,000; Year 2, $45,000; Year 3, $57,500. The discount rate is 9%. What is the value in use for this equipment? Use the present value table in your calculation. (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round final answer to 2 decimal places, e.g. 5,275.25.) Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. Value in use $Question 1 of5 > 0.5 /1 '= E Marin Enterprises is using a discounted cash ow model. Identify which model Marin might use to estimate the discounted fair value under each scenario, and calculate the fair value using the present value tables: Scenario 1: Cash ows are fairly certain Scenario 2: Cash ows are uncertain $240/year for 5 years 75% probability that cash ows will be $240 in 5 years Risk-adjusted discount rate is 8% 25% probability that cash ows will be $115 in 5 years Risk-free discount rate is 2% Riskadjusted discount rate is 8% Riskfree discount rate is 2% (For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round nal answers to 2 decimal places. cg. 5,275.25.) Click here to View the factor table PRESENT VALUE OF 1. Click here to View the factor table PRESENT VALUE OF AN ANNUITY OF 1. Scenario 1: Marin might use traditionalapproach v model. Fair value $ 489.70 Question 5 of5 _ ,1 E James Nobrega is trying to determine the amount to set aside so that he will have enough money on hand in 2 years to overhaul the engine on his vintage used car. While there is some uncertainty about the cost of engine overhauls in 2 years, by conducting some research online, James has developed the following estimates: Engine Overhaul Probability Estimated Cash Outow Assessment $150 10 % 400 20 % 600 40 % 750 30 % Click here to View the factor table PRESENT VALUE OF 1. Click hereto View the factor table PRESENT VALUE OF AN ANNUITY OF 1. How much should James deposit today in an account earning 5%, compounded annually, so that he will have enough money on hand in 2 years to pay for the overhaul? (For calculation purposes. use5 decimal places as displayed in the factor table provided. Round nal answer to 0 decimal places, es. 125.) Deposit amount $