cstephenson_wk1problems_040411

cstephenson_wk1problems_040411 - Student Name: Class:...

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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%
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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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cstephenson_wk1problems_040411 - Student Name: Class:...

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