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
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
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
$
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
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
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
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
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
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
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 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
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 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 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 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