# Interest rate is 10 what is the value of this

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interest rate is 10%, what is the value of this investment to you? (6 points) Hint: Use the NPV function 19. A share of a preferred equity offers \$3.00 per year for perpetuity. What is the value of this preferred share to you if the interest rate is

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5%? (5 points) 20. Assume that you just graduate and get a job. You will work for 40 years and save each year before you retire. During retirement you plan to receive a pension annuity of \$100,000 each year for another 40 years. How much money will you need to have at the moment you retire? How much money do you need to save every year before retirement? Assume the interest rate is always 8%. Before retirement, you deposit your saving at the end of each year. During retirement, you receive the annuity at the beginning of each year. 100,000 x .08 21. Based on the financial statements provided below, please fill the missing numbers and calculate the requested financial ratios. Show all your work to get full credit. 2011 2012 2011 2012 Sales 285,000 \$ 215,000 \$ 190,000 Assets 9,000 Cost of Goods Sold Cash 143,000 16,000 \$ 42,500 \$ 62,500 \$ 26,000 \$ 100,000 \$ 12,500 29,000 Gross Profit Accounts Receivable 70,000 47,000 Operating Expenses Variable Expenses Inventories 50,500 Total Current Assets \$ 28,500 19,000 20,000 Fixed Expenses Land \$ 21,000 20,000 70,000 Buildings and Equipment Accumulated Depreciation Depreciation Total S 10,000 \$ 59,500 10,500 4,500 28,000 43,500 62,000 112,500 Total Fixed Assets Earnings Before Interest and Taxes Interest Expense Earnings Before Taxes 3,500 150,500 \$ Total Assets 6,100 \$ 3,000 S 4,400 1,540 \$ 500 Liabilities and Owner's Equity es S 175 S 22,298 \$ 47,000 \$ 69,298 \$ Accounts Payable 10,500 Net Income 2,860 \$ 325 Short-term Bank Notes Total Current Liabilities
• Fall '19
• Generally Accepted Accounting Principles, Activities Change

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