Group 5 A1 T5 10

Group 5 A1 T5 10 - Group Assignment Week 1 and 2 MBA-6631,...

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Group Assignment Week 1 and 2 MBA-6631, Group participants: Jimmie Rodgers, Cynthia Strickland, Robert Ryals Chapter 2 Time Value of Money: Chapter 2: Time Value of Money #8 Annuity Payment and EAR N=60, I=1% (Derived from Iper = Inom/M {must use Periodic Rate not Nominal rate in calculations.}) PV=20,000 , FV= 0 , Solve for PMT =? EAR portion: Compounding used (PER): NOM%=12, P=12 *Compounding periods per year), Solve for EFF% =? PMT =  $444.89  EFF% (EAR) = 12.6825 Solve using equations and then work problems using financial calculator: FVn = PV(1+I)^n , PV= FVn / (1+I)^n a. {PV=500, I=6%, n=10} solve for FVn b. {PV=500, I=12%, n=10} solve for FVn c. {FVn=500, I=6%, n=10} solve for PV d. {FVn=500, I=12%, n=10} solve for PV a. FVn = 500(1+.06)^10 FVn= $895.42  b. FVn = 500(1+.12)^10 FVn= $1,552.92  c. PVn = 500 / (1+.06)^10 PV= $279.20  d. PVn = 500 / (1+.12)^10 PV= $160.99  #11Time for a Lump Sum to Double How long for $200 to Double at various Rates: a: 7% , FV=$400, PV=$200, I= 7, N=? b: 10% c: 18% d: 100% FVn=PVn(1+I)^n Calculated: Rounded a: N= 10.24 10 years
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b: N= 7.27 7 years c: N= 4.19 4 years d: N= 1 1 year #12 Future Value of an Annuity Find Future Value of the following Annuities, 1st Payment made at End of Year 1 (Ordinary Annuity) a: N=10, I=10%, PMT=$400, FV=? b: N=5, I=5%, PMT=$200, FV=? c: N=5, I=0%, PMT=$400, FV=? Ordinary Annuities  (End of Year  Payment) Annuities Due (Beginning of Year Payment) a: FV = $6,374.97  $7,012.47  b: FV= $1,105.13  $1,160.38  c: FV= $2,000  $2,000.00  #14 Uneven Cash Flow Stream Find the PV of the following Cash Flow Streams: a: I=8%, Year 1 through Year 5, Cash Stream A and Cash Stream B, NPV=? b: I=0%, Year 1 through Year 5, Cash Stream A and Cash Stream B, NPV=?  Cash Stream A Cash Stream B Year 1 $100  $300  When calculating the Cflow  - use “0” in the first  register and then follow through with the  remaining Year values for CF1-…. Year 2
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Group 5 A1 T5 10 - Group Assignment Week 1 and 2 MBA-6631,...

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