This workbook contains the following time value of money calculators: FV PV PVA PVAD FVA FVAD PMT to Amortize PMT to Accumulate Periods to Amortize Periods to Accumulate Periodic Interest Rate Loan Balance Computes the future value of a single sum (presen
Example: IBM issues a 20 year $1,000 bond paying 10% annual interest on January 1, 2000. Curren
What is value of bond if coupons are paid twice a year?
Place information in Cells in Column B.
NOTE: The formulas is Excel use 10% of the bond price and par v
2119
656.89
Home Loan Amortization Table developed by Philip J. Adelman
Home loan or other bank loan amortization table.
This spreadsheet is protected so that the integrity of the formulas will stay intact.
NOTE: The user may modify the loan information b
Retirement calculator worksheet
Enter items in the yellow cells. See your retirement fund cell F7.
Current
Age
Retirement
age
22
Interest Annual
rate
investment Retirement fund
67
5%
$1,000
$159,700.16
Javeta Smith
Problem Set 4
1. Determining Profit or Loss from an Investment. Three years ago, you purchased 150
shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share.
For this problem, ignore commissions that would be charge
IRR->
YEAR
RATE
PV FACTOR
INVESTMENT
UPGRADES END OF YEAR 3
20.24%
NOW
0
1
2
3
10%
10%
10%
10%
1 0.9090909091 0.826446281 0.7513148009
-$31,000.00
YEARLY INCOME
NET CASH IN OR OUT
CUMMULATIVE TOTAL
NPV
PROOF
$17,300.00
$15,200.00
$10,600.00
-$31,000.00
$1
IRR->
11.95%
NOW
YEAR
RATE
PV FACTOR
0
25%
1
INVESTMENT
UPGRADES END OF YEAR 3
3
25%
0.512
IRR X
IRR Y
YEARLY INCOME
CUMMULATIVE TOTAL
2
25%
0.64
Cash Flow Y Crossover
$19,000
0
6,840
3960
9,410
-780
9,300
-4090
-$19,000.00
NET CASH IN OR OUT
1
25%
0.8
Ye
Chapter 8 Question #1-Calculating Payback. What is the
payback period for the following set of cash flows?
NOW
YEAR
0
1
2
3
4
RATE
15%
15%
15%
15%
15%
PV FACTOR
1 0.8695652174 0.7561436673 0.6575162324 0.5717532456
INVESTMENT
UPGRADES END OF YEAR 3
-$14,0
Ch.8 #8-Calculating IRR. What is the IRR of the following set
of cash flows?
IRR->
YEAR
RATE
PV FACTOR
INVESTMENT
UPGRADES END OF YEAR 3
18.21%
NOW
0
1
2
3
15%
15%
15%
15%
1 0.8695652174 0.7561436673 0.6575162324
-$27,000.00
YEARLY INCOME
NET CASH IN OR O
Bond Face
Bond Rate
Bond Term
Payments Per Year
Actual Amount of Interest Payment $
Actual Number of Payments
Market Rate of Interest
EFFECTIVE MARKET RATE Per Payment
The Value or Price of the Bond
1.) PV of face
2.) PV of interest
Issue Price or Value
$
IRR
YEAR
RATE
PV FACTOR
INVESTMENT
UPGRADES END OF YEAR 3
43.95%
NOW
0
1
2
3
4
15%
15%
15%
15%
15%
1 0.869565217 0.756143667 0.657516232 0.571753246
-$95,000.00
YEARLY INCOME
NET CASH IN OR OUT
CUMMULATIVE TOTAL
$18,000.00
$26,000.00
$28,000.00 $260,000.0
Lump Sums are one time payme
TVM CALCULATOR
FV
$
annual interest rate=
number of periods per year =
number of years =
Appendix A.1
Periods
Rate
30
2.50
EFFECTIVE RATE=
FVLSF
2.0976
0.0506
5
2
15
Appendix A.2
PVLSF
0.4767
5.06%
14,682.97
PV
$
4,203.91
Appe
Week 4 Questions
7/31/2016
Chapter 8
3. Global Toys Inc., imposes a payback cutoff of three years for its international
investment projects. If the company has the following two projects available, should it
accept either of them?
Project A has cash flows
Week 7
Finance
Questions
Chapter 17
6. Each business day, on average, a company writes checks totaling $19,500 to
pay its suppliers. The usual clearing time for the checks is four days.
Meanwhile, the company is receiving payments from its customers each
Week 2
Questions
Chapter 4
4. Calculating Rates of Return. In 2011, an 1880-O Morgan silver dollar
sold for $13,113. What was the rate of return on this investment?
FV=PV(1+r)^t R= (FV/PV)^1/t-1 R= (13,113/1)^1/131-1 R= 7.51%
17.Suppose you are still comm
Week 6
Finance
Case Study III
Seth Bullock, the owner of Bullock Gold Mining, is evaluating a new gold mine
in South Dakota. Dan Dority, the companys geologist, has just finished his analysis of
the mine site. He has estimated that the mine would be produ
Week 5
Questions
Chapter 11
4. You have $10,000 to invest in a stock portfolio. Your choices are Stock
X with an expected return of 14 percent and Stock Y with an expected
return of 11 percent. If your goal is to create a portfolio with an
expected return
Case Study 2
Week 4
S&S AIRS MORTGAGE
Mark Sexton and Todd Story, the owners of S&S Air, Inc., were impressed by the work Chris
had done on financial planning. Using Chriss analysis, and looking at the demand for light aircraft,
they have decided that the
Week 3 Questions
Chapter 6
16.Both Bond Bill and Bond Ted have 7 percent coupons, make semiannual
payments, and are priced at par value. Bond Bill has 3 years to maturity, whereas
Bond Ted has 20 years to maturity. If interest rates suddenly rise by 2 per
Zero Growth Stock Price
Where:
Po = Current Price of Stock
D = Constant Dividend
R = Required rate of return
R
1.5
25.00%
D
Po = $
6.00
Constant Growth Stock Price
Where:
Dt = Dividend at some future time (t)
Do = Current Dividend
g = dividend growth rate
Table 6-10 Pro Forma Balance Sheet using percentage of sales method
Balance Sheets for Year Ending December 31
Sales taken from Table
$ 200,000
6-7
Actual
sales for
2007
$
Percentage of
2007 sales
Current Assets
Cash
$ 4,000
Accounts
21,420
Inventory
15,0
Table 10-5 Lowest Total Cost (LTC) of a Truck Purchase
Category
Fuel cost per gallon
Annual Mileage
WACC
Ownership in years
PVAF Table B-5 or Formula
PVF Table B-2 or Formula
Quantity
25,000
12.00%
6
4.1114
0.5066
Truck Model A
Category
Mileage Per gallon