cstephenson_wk1problems_040411

# cstephenson_wk1problems_040411 - Student Name Class Problem...

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Student Name: Class: Problem 06-05 CLAUSSEN PURCHASE Estimated Cash Flows Yearly Time Interest Cash Flow Period Rate *Factor PVA PV Years 1-5 \$70,000 5 8% 3.99271 \$279,490 Years 6-10 70,000 5 10% 3.79079 265,355 265,355 5 8% 0.68058 \$180,595 Years 11-20 70,000 10 12% 5.65022 395,515 395,515 5 10% 0.62092 245,583 245,583 5 8% 0.68058 167,139 End of Year 20 400,000 10 10% 0.32197 54,424 Maximum Purchase Price \$681,648 * Use the Present and Future Value Tables in Appendix 6 or enter the proper formula rounded to 5 decimal places

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Given Data P06-05: CLAUSSEN PURCHASE Anticipated cash flows per year for 20 years \$70,000 Selling price in 20 years \$400,000 Desired rate of return: Years 1-5 8% Years 6-10 10% Years 11-20 12%
Student Name: Class: Problem 06-07 THE LOWLIFE COMPANY Calculations Time Interest Annuity Annuity PVA Period Rate *Factor Amount Calculation Part 1 \$250,000 4 10% 3.16987 \$78,868 Payment Part 2 \$250,000 5 8% 3.99271 \$62,614 Payment Part 3 \$250,000 10% 4.86845 \$51,351 7 Payments

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## This note was uploaded on 04/14/2011 for the course ACCOUNTING 382 taught by Professor None during the Spring '11 term at Rasmussen College.

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cstephenson_wk1problems_040411 - Student Name Class Problem...

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