sess16&amp;17req

# 60478 pv oa 14058642 pv oa r pvf oan i pv oa

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Unformatted text preview: PV OA = R (PVF OAn, i) PV OA = \$18,000 (PVF OA10-5, 12%) PV OA = \$18,000 (5.65022 3.60478) PV OA = \$18,000 (2.04544) PV OA = \$36,818 PV OA = R (PVF OAn, i) PV OA =R (PVF OAn, i) PV OA = \$68,000 (PVF OA30 PV OA = \$38,000 (PVF OA40 10, 12%) 30, 12%) PV OA = \$68,000 (8.05518 PV OA = \$38,000 (8.24378 5.65022) 8.05518) PV OA = \$68,000 (2.40496) PV OA = \$38,000 (.18860) PV OA = \$163,537 PV OA = \$7,167 Present value of future net cash inflows: \$(140,586.42) 36,817.92 163,537.28 7,166.80 \$ 66,936 Stacy McGill should accept no less than \$66,935.58 for her vineyard business. P 6-9 (a) Time diagram for the first ten payments: i = 10% PVAD = ? R= \$800,000 \$800,000 \$800,000 \$800,000 \$800,000 \$800,000 \$800,000 0 1 2 3 7 8 n = 10 9 10 Formula for the first ten payments: PV AD = R (PVF ADn, i) PV AD = \$800,000 (PVF AD10, 10%) PV AD = \$800,000 (6.75902) PV AD = \$5,407,216 Formula for the last ten payments: PV OA = R (P...
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