MGT 160 Homework #3 Due Wednesday, October 19 th 5.2 (153) Present Value and Multiple Cash Flows . Investment X offers to pay you $4,300 per year for 9 years, whereas Investment Y offers to pay you $6,100 per year for 5 years. Which of these cash flow streams has the highest present value if the discount rate is 6 percent? If the discount rate is 22 percent? 5.8 (154) Calculating Annuity Values . You want to have $25,000 in your savings account eight years from now, and you’re prepared to make equal annual deposits into the account at the end of each year. If the account pays 4.75 percent interest, what amount must you deposit each year? 5.24 (156) Calculating Annuity Future Values . You are to make monthly deposits of $400 into a retirement account that pays 10.5 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 30 years? 5.28
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This note was uploaded on 12/18/2011 for the course MGT 160 taught by Professor Staff during the Fall '08 term at UC Davis.