Use excel where possible, please!

1. Using a required rate of return of 12 percent, determine the present value of an annual perpetuity of $5,000, with the first payment to be received exactly one year from today.

2. Using a required rate of return of 10 percent, determine the present value of an annual perpetuity of $10,000, with the first payment to be received today.

3. Using a required rate of return of 8 percent, determine the present value of an annual perpetuity

4. Using a required rate of return of 14 percent, determine the present value of an annual perpetuity of $1,000, with the first payment to be received exactly four years from today.

5. Using a required rate of return of 14 percent, determine the present value of an annual perpetuity. The first payment of $1,000 will be received exactly one year from today, and assume that each subsequent annual payment is expected to increase 3 percent in perpetuity.

6. Using a required rate of return of 12 percent, determine the present value of an annual perpetuity. The first payment of $1,000 will be received exactly six years from today, and assume that each subsequent annual payment is expected to increase 2 percent in perpetuity.

7. Using a required rate of return of 4 percent, determine the value of a $10,000 (face value) bond with annual interest payments and which matures in exactly 10 years. The bond has a coupon rate of 5 percent, and the next interest payment falls exactly 12 months from today.

8. Using a required rate of return of 12 percent, determine the present value of the following annual cash flows expected to be received over the next five years (assume received on last day of the year): Cash to be received at the end of year: 1 2 3 4 5 Projected cash flows $1,000 $1,200 $1,500 $500 $2,000

9. Using the information from problem 9 above, determine the value of a company that is projected to yield the future cash flows listed above in years 1-5, plus a perpetual annual cash flow starting at the end of year 6 of $2,500.

10. Using the information from problems 9 and 10 above, determine the value of the company, but now assume that the $2,500 annual cash flow which starts at the end of year 6 grows by 3% per year, into perpetuity.