Corporate_Finance_9th_edition_Solutions_Manual_FINAL0

80260000 0 pv 14000 pmt fv solve for apr 0593

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Unformatted text preview: T $135,000 FV 10 N I/Y 10.03% 8% I/Y ± 75,000 PV PMT $195,000 FV 23 N PV $51,855.29 $5,000 PMT FV 2 N 8% I/Y PV $44,457.56 PMT $51,855.29 FV 15 N 15% I/Y PV $4,385.53 $750 PMT FV 5 N 12% I/Y PV $2,488.47 .80($450,000) PV PMT $4,385.53 FV 360 N 7.5%/12 I/Y PMT $2,517.17 $2,517.17 PMT FV 22 × 12 N 7.5%/12 I/Y PV $325,001.73 $6,000 PV FV 6 N 2.40% / 12 I/Y PMT FV $6,072.36 90 91 Enter 6 N 18% / 12 I/Y $6,072.36 PV PMT Solve for $6,639.78 – 6,000 = $639.78 35. Enter Solve for Enter Solve for Enter Solve for 36. Enter Solve for 37. Enter N 83.52 60 N 10% / 12 I/Y 12 N 15% I/Y 12 N 5% I/Y 12 N 10% I/Y $7,500 PMT FV $6,639.78 PV $51,102.69 FV PV $66,474.39 $7,500 PMT FV PV $40,654.64 $7,500 PMT FV PV ± $250 PMT $30,000 FV I/Y Solve for 0.727% 0.727% × 12 = 8.72% 38. Enter 360 N 6.8% / 12 I/Y $80,000 PV ± $1,650 PMT FV Solve for $250,000 – 184,070.20 = $65,929.80 Enter Solve for 360 N 6.8% / 12 I/Y PV $184,070.20 $1,200 PMT FV $65,929.80 PV PMT FV $504,129.05 92 39. CFo C01 F01 C02 F02 C03 F03 C04 F04 I = 10% NPV CPT $4,669.90 $0 $1,200 1 $0 1 $2,400 1 $2,600 1 PV of missing CF = $6,453 – 4,669.90 = $1,783.10 Value of missing CF: Enter Solve for 40. CFo $1,000,000 C01 $1,350,000 F01 1 C02 $1,700,000 F02 1 C03 $2,050,000 F03 1 C04 $2,400,000 F04 1 C05 $2,750,000 F05 1 C06 $3,100,000 F06 1 C07 $3,450,000 F07 1 C08 $3,800,000 F08 1 C09 $4,150,000 F09 1 C010 $4,500,000 I = 9% NPV CPT $18,194,308.69 2 N 10% I/Y $1,783.10 PV PMT FV $2,157.55 93 41. Enter 360 N I/Y 0.593% . 80($2,600,00 0) PV ± $14,000 PMT FV Solve for APR = 0.593% × 12 = 7.12% Enter Solve for 42. Enter Solve for 3 N 7.12% NOM EFF 7.35% 13% I/Y 12 C/Y PV $93,561.77 PMT $135,000 FV Profit = $93,561.77 – 96,000 = –$2,438.23 Enter Solve for 43. Enter Solve for Enter Solve for 44. Enter Solve for Enter Solve for 84 N 13% / 12 I/Y 96 N 9% / 12 I/Y 8 N 7% I/Y 17 N 3 N I/Y 12.04% 7% I/Y ± $96,000 PV PMT $135,000 FV PV $39,052.89 $4,000 PMT FV PV $22,729.14 PMT $39,052.89 FV PV $102,387.66 $1,500 PMT FV PV $123,869.69 $1,500 PMT $102,387.66 FV 94 45. Enter Solve for 15 × 12 N 9.8%/12 I/Y PV $1,200 PMT FV $488,328.61 FV = $488,328.61 = PV e.09(15); PV = $488,328.61 e–1.35 = $126,594.44 46. Enter Solve for 47. Enter Solve for 12 N PV@ t = 14: $2,100 / 0.073 = $28,767.12 7 N 7.3% I/Y PV $17,567.03 $26,000 PV PMT $28,767.12 FV I/Y 2.219% ± $2,491.67 PMT FV APR = 2.219% × 12 = 26.62% Enter Solve for 48. Enter Solve for Enter Solve for Enter Solve for Enter Solve for 18 N 6.15% I/Y 12 N 6.15% I/Y 8 N 6.15% I/Y 26.62% NOM EFF 30.12% 12 C/Y semiannual rate = (1.01)6 – 1 = 6.15% PV $32,883.16 $4,500 PMT FV Monthly rate = .12 / 12 = .01; 10 N 6.15% I/Y PV $20,396.12 PMT $32,883.16 FV PV $16,063.29 PMT $32,883.16 FV PV $11,227.04 PMT $32,883.16 FV 95 49. a. Enter Solve for 5 N 2nd BGN 2nd SET 11% I/Y PV $36,958.97 $10,000 PMT FV Enter Solve for b. Enter Solve for 5 N 11% I/Y PV $41,024.46 $10,000 PMT FV 5 N 2nd BGN 2nd SET 11% I/Y PV $10,000 PMT FV $62,278.01 Enter Solve for 50. Enter Solve for 51. Enter Solve for 52. Enter Solve for 5 N 2nd BGN 2nd SET 48 N 2nd BGN 2nd SET 2 × 12 N 11% I/Y PV $10,000 PMT FV $69,128.60 6.45% / 12 I/Y $65,000 PV PMT $1,531.74 FV 10.4% / 12 I/Y $3,500 PV PMT $160.76 FV PV of college expenses: 4 N 8.5% I/Y PV $114,645.88 $35,000 PMT FV Cost today of oldest child’s expenses: Enter Solve for 14 N 8.5% I/Y PV $36,588.29 PMT $114,645.88 FV 96 Cost today of youngest child’s expenses: Enter Solve for 16 N 8.5% I/Y PV $31,080.12 PMT $114,645.88 FV Total cost today = $36,588.29 + 31,080.12 = $67,668.41 Enter Solve for 54. Option A: Aftertax cash flows = Pretax cash flows(1 – tax rate) Aftertax cash flows = $175,000(1 – .28) Aftertax cash flows = $126,000 2ND BGN 2nd SET Enter Solve for 31 N 10% I/Y PV $1,313,791.2 2 $126,000 PMT FV 15 N 8.5% I/Y $67,668.41 PV PMT $8,148.66 FV Option B: Aftertax cash flows = Pretax cash flows(1 – tax rate) Aftertax cash flows = $125,000(1 – .28) Aftertax cash flows = $90,000 2ND BGN 2nd SET Enter Solve for $848,422.30 + 530,000 = $1,378,422.30 56. Enter Solve for Enter Solve for 35 N 8.4% / 12 I/Y 5 × 12 N 8.4% / 12 I/Y $24,000 PV 30 N 10% I/Y PV $848,422.30 $90,000 PMT FV PMT $491.24 $491.24 PMT FV PV $14,817.47 FV 97 Total payment = Amount due(1 + Prepayment penalty) + Last payment Total payment = $14,817.47(1 + .01) + $491.24 Total payment = $15,456.89 57. Pre-retirement APR: Enter Solve for NOM 10.48% 11% EFF 12 C/Y Post-retirement APR: Enter Solve for NOM 7.72% 8% EFF 12 C/Y At retirement, he needs: Enter Solve for 240 N 7.72% / 12 I/Y PV $2,656,102.8 1 $20,000 PMT $1,000,000 FV In 10 years, his savings will be worth: Enter Solve for 120 N 10.48% / 12 I/Y PV $1,900 PMT FV $400,121.62 After purchasing the cabin, he will have: $400,121.62 – 320,000 = $80,121.62 Each month between years 10 and 30, he needs to save: Enter Solve for 58. Enter PV of purchase: 36 8% / 12 N I/Y Solve for $38,000 – 20,468.62 = $17,531.38 PV of lease: 36 8% / 12 N I/Y Solve for $16,594.14 + 1 = $16,595...
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This note was uploaded on 07/10/2010 for the course FIN 6301 taught by Professor Eshmalwi during the Spring '10 term at University of Texas-Tyler.

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