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Unformatted text preview: CHAPTER 6 Accounting and the Time Value of Money ASSIGNMENT CLASSIFICATION TABLE Topics Questions Brief Exercises Exercises Problems 1. Present value concepts. Expected cash flows. 1, 2, 3, 4, 5, 9, 17 2, 3 6, 7 2. Use of tables. 13, 14 8 1 3. Present and future value problems: a. Unknown future amount. 7, 19 1, 5, 13 2, 3, 4, 6, 8, 9, 13 b. Unknown payments. 10, 11, 12 6, 12, 17 9, 18, 19 2, 8 c. Unknown number of periods. 4, 9 10, 17 2 d. Unknown interest rate. 15, 18 3, 11, 16 9, 11, 16 2, 9 e. Unknown present value. 8, 19 2, 7, 8, 10, 14 2, 3, 4, 5, 6, 7, 8, 10, 14, 19, 20, 21 1, 4, 6, 7, 9 4. Value of a series of irregular deposits; changing interest rates. 3, 5, 10 5. Valuation of leases, pensions, bonds; choice between projects. 6 15 12, 13, 14, 15, 16 3, 5, 7, 8, 10, 11, 12, 13, 14 6. Deferred annuity. 16 9 *7. Uses of a calculator. 22, 23, 24 15, 16, 17 61 ASSIGNMENT CHARACTERISTICS TABLE 62 It e m Description Level of Difficu lty Time (minut es) E 6 1 Using interest tables. Simple 510 E 6 2 Expected Cash Flows. Simple 510 E 6 3 Expected Cash Flows. Moder ate 1520 E 6 4 Simple and compound interest. Simple 510 E 6 5 Computation of future values and present values. Simple 1015 E 6 6 Annuity due problems. Moder ate 1520 E 6 7 Ordinary annuity problems. Simple 1015 E 6 8 Future value and present value problems. Moder ate 1520 E 6 9 Computation of bond prices. Moder ate 1217 E 6 10 Computations for a retirement fund. Simple 1015 E 6 11 Unknown interest rate. Moder ate 510 E 6 12 Unknown periods and unknown interest rate. Simple 1015 63 E 6 13 Evaluation of financing options. Moder ate 1015 E 6 14 Analysis of alternatives. Simple 1015 E 6 15 Computation of present value of bonds. Moder ate 1520 E 6 16 Computation of pension liability. Moder ate 1520 E 6 17 Unknown Periods, deferred annuity. Moder ate 1520 E 6 18 Retirement of debt. Simple 1015 E 6 19 Computation of amount of rentals. Simple 1015 E 6 20 Least costly payoff—ordinary annuity. Simple 1015 E 6 21 Least costly payoff—annuity due. Simple 1015 *E 6 22 Determining the interest rate with a calculator. Simple 35 *E 6 23 Determining the interest rate with a calculator. Simple 35 *E 6 24 Determining the interest rate with a calculator. Simple 35 P 6 1 Computation of present value. Moder ate 1520 64 P 6 2 Computation of unknown interest factors. Moder ate 1520 P 6 3 Analysis of alternatives. Moder ate 2030 P 6 4 Evaluating payment alternatives. Moder ate 2030 P 6 5 Analysis of alternatives. Moder ate 2025 P 6 6 Expected cash flows and present value. Moder ate 2025 P 6 7 Expected cash flows and present value. Moder ate 2025 P 6 8 Purchase price of a business (deferred annuities).Purchase price of a business (deferred annuities)....
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 Spring '08
 Friday
 Accounting

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