When you are finished with this exercise, change the status to "DONE!" ALT-FUTURE-VALUE-LUMP-SUM Hood Company invested $3,500 in an account that earns 12.00% per year. How much will the investment grow to in 5 years? a. Answer 0 1 2 4 5 Investment in time period 0: $3,500 T Put answer in box to the right... ALT-PV-LUMP-SUM b. Answer Shasta Inc. is looking at an investment that will pay Shasta Inc. $10,000 in 5 years. How much should the company pay for this investment today, in order to earn a rate of return of 9.00%? a ? 0 1 2 3 Investment in time period 0: 0 Put answer in box to the right.. 4 5 $10,000 c. ALT-PV-ANNUITY Shasta Inc. is looking at an investment that will pay Shasta Inc. $8,000 each year for 5 years. How much should the company pay for this annuity today, in order to earn a rate of return of 15.00%? % Answer 0 2 3 4 5 Investment in time period 0: $8,000 $8,000 $8,000 $8,000 $8,000 Put answer in box to the right. ALT-PV-CASH STREAM Answer d. Baker Brothers is looking at an investment that will pay Baker Brothers $15,000 in year 1, $10,000 in year 2, and $5,000 in year 3. How much should the company pay for this cash stream today, in order to earn a rate of return of 10.00%? 0 3 Investment in time period 0: $10,000 $5,000 $15,000 Put answer in box to the right. PV OF $1.00 1% 2% 4% 6% 7% 8% 9% 10% 11% 13% 14% 15% 3% 0.9709 1 0.9901 0.9346 5% 0.9524 0.9070 0.9259 0.9174 0.8850 0.9804 0.9612 0.8696 0.9615 0.9246 0.9434 0.8900 0.9009 0.8116 0.8772 0.7695 2 0.9426 0.8734 0.8417 0.7831 0.7561 3 0.9423 12% 0.8929 0.7972 0.7118 0.6355 0.5674 0.9151 0.8638 0.8396 0.8163 0.8573 0.7938 0.7350 0.7722 0.9091 0.8264 0.7513 0.6830 0.6209 0.9803 0.9706 0.9610 0.9515 0.7312 0.6931 0.6750 4 0.8890 0.8548 0.8219 0.8227 0.7921 0.7084 0.9238 0.9057 0.5921 0.8885 0.8626 0.7629 0.7130 0.6587 0.5935 0.6133 0.5428 0.6575 0.5718 0.4972 5 0.7835 0.7473 0.6806 0.6499 0.5194 PV OF AN ANNUITY OF $1.00 1% 3% 5% 6% 7% 88 9% 10% 11% 12% 13% 14% 15% 2% 0.9804 1 0.9709 0.9434 0.9091 0.9009 0.8696 0.9615 1.8861 0.9524 1.8594 0.9346 1.8080 0.8929 1.6901 0.8772 1.6467 2 1.9416 1.9135 0.9259 1.7833 2.5771 1.8334 1.6257 0.9901 1.9704 2.9410 3.9020 4.8534 0.9174 1.7591 2.5313 3.2397 1.7355 2.4869 3 2.8839 2.8286 2.7751 2.4018 2.3216 2.6243 3.3872 0.8850 1.6681 2.3612 2.9745 35172 1.7125 2.4437 3.1024 3.6959 4 2.7232 3.5460 4.3295 2.6730 3.4651 4.2124 3.3121 3.8077 4.7135 3.1699 3.7171 4.5797 3.0373 3.6299 4.4518 2.9137 3.4331 2.2832 2.8550 3.3522 5 4.1002 3.9927 3.8897 3.7908 3.6048